MegaUpload (MegaVideo) Smoking Gun? Did the site illegally charge for Streaming Movies?

With Kim Dotcom getting his day in court, this is timely.

The Trichordist

These screen shots appear to show that Kim Dotcom’s Megaupload was selling streaming movies that it did not have the rights to sell.

Megaupload was allegedly paid uploaders per stream from files they uploaded to Megaupload. That is why there were so many links that Google autopopulated Megavideo after you entered Star Wars in the search field.

Then Google estimated that there were 4.3 million web pages that had the words “star wars megavideo” on them.  Legitimate file locker sites like Dropbox, don’t allow any public links to copyrighted content.  In fact Dropbox just banned Boxopus, a torrent tool from using its API.

Megavideo let you play the first 45 minutes of Star Wars and thousands of other movies for free (after they had served you and profited from dozens ads) . . .

But then, to watch past 45 minutes, you had to enter your credit card and pay…

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Ellie Goulding’s New YouTube Strategy Finally Puts Google in its Place

Nice to see artists getting smart about YouTube.

Music Technology Policy

We all know that YouTube pays the lowest royalty rate and has the least transparent royalty statements of any digital service. Due to really bad advice, artists and labels have been driving traffic to YouTube essentially for free and marketers misread the direction of this traffic in forming the belief that hits need YouTube.  Actually, it’s the other way around.  YouTube needs hits.

Taylor Swift’s 1989 release led the way on putting this YouTube situation back on the right track.  Taylor’s videos were pretty much only available on the higher-royalty Vevo, and her label used a variety of tools to take down most of the other Taylor videos on YouTube proper.  (So while it is true that Taylor denied Spotify, to say that somehow the business move was ill-advised because YouTube pays less than Spotify misses the Vevo point.)

Ellie Goulding is now extending the strategy in rather a brilliant…

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YouTube’s Sucker Punch ? Free Streaming Licenses, No Subscription Fees…

We reported on this a little bit ago that YouTube Music Key seemed to be a pretty good way for Google to leverage labels into legitimate licenses with the promise of paid subscription fees. We questioned that in our post, “Did Google & YouTube just Scam The Entire Record Business into Free Streaming Licenses? MusicKey is MIA…“.

But here’s the thing… it’s not just us. Music Business Worldwide is asking the same question:

YouTube Music Key starts charging subscriptions… oh wait, no it doesn’t | Music Business Worldwide

You can see why suspicions are growing out there amongst the more cynical minds in the music biz that YouTube won’t ever charge for Music Key.

YouTube struck a number of megabucks, multi-year licensing deals with rights-holders last year, largely on the basis of launching a subscription platform.

Deals done, labels are now scratching their heads as to why Music Key isn’t earning them any money, almost a year after it was announced.

READ THE FULL POST AT MUSIC BUSINESS WORLDWIDE:
http://www.musicbusinessworldwide.com/youtube-music-key-starts-charging-subscriptions-oh-wait-no-it-doesnt/

 

Artists Rights Watch – Weekly Update 09.21.15

Big Tech Has Become Way Too Powerful: Google Is Playing By the Rules They Make | Music Tech Policy
https://musictechpolicy.wordpress.com/2015/09/19/big-tech-has-become-way-too-powerful-google-is-playing-by-the-rules-they-make/

Big Tech Has Become Way Too Powerful | NY Times

Goodlatte & Conyers Announce Copyright Review Listening Tour | Judiciary.House.Gov
http://judiciary.house.gov/index.cfm/2015/9/goodlatte-conyers-announce-copyright-review-listening-tour

Weekly Copyright Issues Wrap Up – September 18, 2015 | Copyright Alliance
https://www.copyrightalliance.org/content/weekly_copyright_issues_wrap_-_september_18_2015

Anti-piracy battle unfolds in real time on Periscope, live-streaming apps | San Jose Mercury News
http://www.mercurynews.com/business/ci_28846415/anti-piracy-battle-unfolds-real-time-periscope-live

After years of delay, Mega founder Kim Dotcom faces extradition | CNBC
http://www.cnbc.com/2015/09/20/mega-founder-kim-dotcom-facing-extradition.html

Lessig to NZ court: Dotcom charges would fail in the US | The Register UK
http://www.theregister.co.uk/2015/09/17/dotcom_charges_would_fail_in_us

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Why the ‘Dancing Baby’ copyright case is just hi-tech victim shaming | The Register UK
http://www.theregister.co.uk/2015/09/17/dancing_baby_victim_shaming/

Ninth Circuit Gets Fair Use Wrong to the Detriment of Creators | CPIP.GMU.EDU
http://cpip.gmu.edu/2015/09/16/ninth-circuit-gets-fair-use-wrong-to-the-detriment-of-creators/

The DMCA, Fair Use and Dancing Babies | Plagiarism Today
https://www.plagiarismtoday.com/2015/09/15/the-dmca-fair-use-and-dancing-babies/

Lenz Ruling Isn¹t Really About the Little Guy | The Illusion Of More

Lenz Ruling Isn’t Really About the Little Guy

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Why don¹t advertisers demand better from YouTube? | Vox Indie

Why don’t advertisers demand better from YouTube?

Ad Block Apocalypse? Here’s How to Save the Web | Tom¹s Guide
http://www.tomsguide.com/us/save-web-from-ad-blocking,news-21611.html
* Funny how things become a crisis when it’s YOUR JOB “PageFair’s report estimates that blocked ads will result in $21.8 billion of lost revenue this year alone”

Will Ad Blocking Be Google’s Kryptonite? | Seeking Alpha
http://seekingalpha.com/article/3520316-will-ad-blocking-be-googles-kryptonite

Publishers panic as Apple cleans their mobile platform from banner ad addiction. |AdLand
http://adland.tv/adnews/publishers-panic-apple-cleans-their-mobile-platform-banner-ad-addiction/1830645520

The Pirate Bay Blacklisted By 600 Advertising Companies | Torrent Freak
https://torrentfreak.com/the-pirate-bay-blacklisted-by-600-advertising-companies-150919/
* “Pirate sites will almost certainly be able to find advertisers willing to put hands in pockets but as times get tough, the quality of those ads is likely to deteriorate even further still. With that, user experience will also decline. Will pirates put up with the junk? Time will tell.²

ISPs don¹t have 1st Amendment right to edit Internet, FCC tells court | Ars Technica
http://arstechnica.com/tech-policy/2015/09/isps-dont-have-1st-amendment-right-to-edit-internet-fcc-tells-court/

Music copyright reform takes center stage in Nashville | The Tennesean
http://www.tennessean.com/story/money/industries/music/2015/09/20/music-copyright-reform-takes-center-stage-nashville/72399864/

US Recording Academy launches major grassroots initiative | Music Week
http://www.musicweek.com/news/read/us-recording-academy-launches-major-grassroots-initiative/062803
* Fair Pay, Fair Play / Pre-72

For musicians it’s trickle down misery | AdLand
http://adland.tv/adnews/musicians-its-trickle-down-misery/2052447471

Digital song sales hit record low in the US | Music Week
http://www.musicweek.com/news/read/digital-song-sales-hit-record-low-in-the-us/062784

Ellie Goulding: ŒOn My Mind¹ single withheld from YouTube and SoundCloud | Music Ally

Ellie Goulding: ‘On My Mind’ single withheld from YouTube and SoundCloud

YouTube Music Key starts charging subscriptionsŠ oh wait, no it doesn¹t  | Music Business Worldwide

YouTube Music Key starts charging subscriptions… oh wait, no it doesn’t

Meet the new Grooveshark ­ aka ŒPopcorn Time for music¹ | Music Business Worldwide

Meet the new Grooveshark – aka ‘Popcorn Time for music’

95 Percent of Streaming Music Catalogs Are ‘Irrelevant’ to Consumers, Study | Digital Music News

95 Percent of Streaming Music Catalogs Are ‘Irrelevant’ to Consumers, Study Finds


* More music ³creation² does not equal more value for consumers.

Don’t Buy The Hype ‹ Airbnb And Uber Are Terrible For The Economy | Business Insider
http://www.businessinsider.com/airbnb-and-uber-are-terrible-for-the-economy-2014-5

Big Tech Has Become Way Too Powerful: Google Is Playing By the Rules They Make

Music Technology Policy

Americans are freedom loving people, and nothing says freedom like getting away with it.

From Long, Long Time by Guy Forsyth

If you read nothing else this weekend, read former Secretary of Labor Robert Reich’s New York Times op-ed “Big Tech has Become Way Too Powerful.”  (Which was evidently originally posted under the title “Big Tech has Become Way Too Powerful, Ask Google” judging by the title in the link (http://www.nytimes.com/2015/09/20/opinion/is-big-tech-too-powerful-ask-google.html)–I wonder who made that change.)

Secretary Reich makes the point that Google, in particular, has an unprecedented stranglehold on the U.S. Government:

In 2012, the staff of the Federal Trade Commission’s Bureau of Competition submitted to the commissioners a 160-page analysis of Google’s dominance in the search and related advertising markets, and recommended suing Google for conduct that “has resulted — and will result — in real harm to consumers and to innovation.” But the commissioners chose…

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Should take down mean stay down? EU’s Big Internet quiz leaks | The Register UK

Wha-wha-whackamole

Safe harbour’s takedown provisions mean that rights holders must play whackamole, as the black supply chain ensures the goods reappear in the shop window, usually the very next day. Rightsholders file millions of takedown notices with little effect. The BPI alone has filed 66 million with Google in the past year.

The clumsy YouTube deal with indies was never supposed to become public, but it simply made clear what everyone already knew: the platform held all the power, and takedowns were ineffective. But as one US legal expert told us, “limiting liability was never intended to be a shield for criminal behavior”.

READ THE FULL STORY AT THE REGISTER UK:
http://www.theregister.co.uk/2015/09/14/should_takedown_mean_staydown_eu_internet_probe_leaks/?page=2

Americana Music Conference Goes Down the Streaming Rabbit Hole

Music Technology Policy

Americana Drink Ticket

A conference has to make a buck, you know?  We all understand that, and the Americana Music Conference is no exception.  The conference that is attached to the Americana Music Awards is a stalwart in our business and has managed to maintain its true authenticity for a very long time.  We appreciate the sponsors who line up to support the show and the conference–it’s a great group.  For the most part.

How anyone thought that it was a good idea to include Pandora in the mix of sponsors is a bit beyond me.  Pandora is getting sued in the Turtles class action because they don’t pay to play artists who happened to record before 1972.  That list includes a huge number of Americana, bluegrass, roots and country music artists.  So how the Americana Music Conference could allow these people in the door is beyond me.  Well, if they’re…

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95 Percent of Streaming Music Catalogs Are ‘Irrelevant’ to Consumers, Study Finds | Digital Music News

So about that long tail and digital empowerment for indie artists, hmmmmmm…

So why aren’t those numbers better?

Mulligan feels that a big part of the problem is that the average consumer simply doesn’t care about enormous selections and vast catalogs, and they’re definitely not willing to pay for it. “Most people aren’t interested in all the music in the world and most people aren’t interested in spending $9.99 (or the local market equivalent) a month for music,” Mulligan continued.

“Indeed, just 5% of streaming catalogues is regularly frequented. Most of the rest is irrelevant for most consumers.”

Surprise! Not all music is equal despite how much of it is being made.

Charge a premium for top shelf professional music and let everyone else give their music away if they want to. Stop exploiting professional artiss into free streaming schemes and scams.

As we reported in our post “Streaming Is The Future, Spotify Is Not Let’s Talk Solutions” we suggested consumer based tiered pricing based on value proposition. Glad to see this is starting to get some notice.

READ THE FULL POST AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/2015/09/10/95-percent-of-streaming-music-catalogs-are-irrelevant-to-consumers-study-finds/

Artists Rights Watch – A Collection Of Weekly Required Reading 09.08.15

Artists and Internet Stories from around the Web.

Why intellectual property rights matter | The Washington Times
http://www.washingtontimes.com/news/2015/sep/3/randolph-may-seth-cooper-why-intellectual-property/
* The Founders believed ownership of one’s labor is a natural right

What the Internet’s free culture has cost us in art | PBS Newshour
http://www.pbs.org/newshour/bb/internets-free-culture-cost-us-art/

Film Producers Sue 16 Popcorn Time Users in Bid to Curb Piracy | PC Mag
http://www.pcmag.com/article2/0,2817,2490549,00.asp

The MovieTube Litigation Part I: Who Needs SOPA? | Law Theories
http://lawtheories.com/?p=2269

Hollywood, Silicon Valley Sharpen Their Swords in Piracy War | Variety
http://variety.com/2015/digital/news/hollywood-silicon-valley-internet-piracy-1201572854/

Amazon, Facebook and Google have the same secret  | Salon
http://www.salon.com/2015/08/30/amazon_facebook_and_google_have_the_same_secret/
* Our modern tech monopolies made billions and transformed the economy in different ways, but this was the base

With advertising on WDBJ-TV murder clips, YouTube sinks to new low | Vox Indie

With advertising on WDBJ-TV murder clips, YouTube sinks to new low

Transparency for Thee But Not for Me: Google Tries to Censor India’s Link Rigging Investigation of Google | MTP
https://musictechpolicy.wordpress.com/2015/09/04/transparency-for-thee-but-not-for-me-google-tries-to-censor-indias-link-rigging-investigation-of-google/

The Pirate Hunter | Williamette Week
http://www.wweek.com/portland/article-25279-the_pirate_hunter.html

The More Money Spotify Makes, The Less Artists Get Paid | Digital Music News

The More Money Spotify Makes, The Less Artists Get Paid

A Stream on Apple Music Pays Songwriters And Publishers 33% More Than A Stream On Spotify | Hypebot

A Stream on Apple Music Pays Songwriters And Publishers 33% More Than A Stream On Spotify

Making Free Work (Hint Cannibalize Radio Not Sales) | Music Industry Blog
https://musicindustryblog.wordpress.com/2015/07/24/making-free-work-hint-cannibalize-radio-not-sales/

Imogen Heap: saviour of the music industry? | The Guardian
http://www.theguardian.com/music/2015/sep/06/imogen-heap-saviour-of-music-industry


[RELATED] Understanding Music And Blockchain Without The Hype | Trichordist

https://thetrichordist.com/2015/08/20/understanding-music-and-blockchain-without-the-hype-2/

WashingtonWatch: Pre-’72 Royalty Battle Adds Another New York Lawsuit | Grammy Pro
https://www.grammypro.com/advocacy/news/washingtonwatch-pre-72-royalty-battle-adds-another-new-york-lawsuit

Radio Giants Facing Bicoastal Legal Demands to Stop Playing Pre-1972 Songs | Billboard
http://www.billboard.com/articles/news/6678790/radio-giants-facing-bicoastal-legal-demands-to-stop-playing-pre-1972-songs

What EMI’s six-month sample amnesty means for the music industry | The Guardian
http://www.theguardian.com/music/2015/sep/01/emi-sample-amnesty-means-for-the-music-industry

Rosanne Cash: ‘I’ve always been a union member’ | Local802afm
http://www.local802afm.org/2015/08/rosanne-cash-ive-always-been-a-union-member/

‘Halo,’ ‘Destiny’ composer Marty O’Donnell wins lawsuit against Bungie | Engadge
http://www.engadget.com/2015/09/04/halo-destiny-composer-marty-odonnell-wins-lawsuit-against/

According To U.S. Big Data, We Won The Vietnam War | Forbes
http://www.forbes.com/sites/jonathansalembaskin/2014/07/25/according-to-big-data-we-won-the-vietnam-war/

Robert Reich: The sharing economy will be our undoing | Salon
http://www.salon.com/2015/08/25/robert_reich_the_sharing_economy_will_be_our_undoing_partner/

The Hypocrisy of the Internet Journalist | Medium
View at Medium.com
* I’m selling you out as hard as I can, and I’m sorry.

“I Ain’t Gonna Work On Google’s Farm No More” | Creators are Forced Labor* On The Ad-Funded Piracy Fields Of The Advertnet

Advertising is killing internet. Soon most online advertising will be forced pre-rolls of TV commercials. You finally have a DVR to skip commercials, and soon there will be no way to avoid them. Do you really think this is what what the internet’s founding founders had envisioned? One great big inescapable advertising machine? No, we didn’t think so either.

Creators are now forced labor* on the digital fields of the AdvertNet, where the Borg like overlords of internet advertising have forced us into being unwilling participants on their digital plantations against our will. We have no defense against the advertising funded, illegal exploitation of our labor.

Now we want to be clear, we’re not opposed to advertising in general, the advertising industry overall or the many highly talented creatives who work in advertising. We all love those Superbowl ads, right? And let’s not forget that many a band in recent history has found fortune from a well placed song in a high profile commercial (Hello, Phoenix).

No, we’re talking about the highly invasive, privacy invading, personal data tracking, internet advertising slathered on pirate sites that illegally distribute copyrighted works and destroy the livelihoods of professional artists and creators against their will.

Digital Advertising Agencies are on the wrong side of artists rights. They have sold us out.

Here’s the elephant in the room. The internet as a business has a math problem and it goes something like this. There are only a few ways to make money on the online. First is transactional sales where the company can take a margin on each transaction (Amazon, Itunes, Etc). Second is a transactional service where the company can take a margin on each transaction (Uber, AirBnB, etc). Third is subscription based access to content and software (Netflix and Adobe respectively). Fourth is advertising for pretty much everything else including the big categories of Software As Service or SAAS. SAAS models including everything from Google, Facebook, Twitter and Instagram to newspapers, blogs and community based bulletin boards like Reddit, etc.

The fundamental problem here is attempting to transform all businesses to advertising supported models. This is because the largest most successful internet company ever (Google) just happens to work under that model. But the economics at large don’t generate enough revenue to pay for the cost of labor for the production of art, photography, music, movies, book, etc being distributed.

Think about it. How could it be possible that everything that once required transactional revenues to be sustainable can now be paid for with just advertising revenue? It can’t. Not under current models that do not allow for scarcity and exclusivity.

Scarcity and exclusivity are what make broadcasting models work. Television networks invest in creating exclusive content that is scarce. The scarcity and exclusivity allows for maximum monetization of that asset. The Superbowl and the Academy Awards are two of the highest grossing advertising based products specifically because they are scarce.

Take the above one step further. Imagine that everything on the internet, every single site that is not selling merchandise, a service or a subscription has to be self supporting on advertising revenue alone. Do you really think that’s possible? No, it is not. This is simply because to the cost of production of professional content can not be created at the cost that internet advertising provides.

The work around this math problem is to steal the labor of professional creators and monetize it against their will.

No budgets to pay for production, no problem. Steal It. 

Just make the margin on the cost of running the business without paying for content production. A business that does not have to pay for its inventory or cost of goods is far more profitable than one that does pay those costs. This is exactly how pirate sites and Google’s YouTube operate.

The creators of YouTube admitted as much in private emails that were exposed during the lawsuit with Viacom:

• A July 29 email conversation about competing video sites laid out the importance to YouTube of continuing to use the copyrighted material. “Steal it!” Chen said , and got a reply from Hurley, “hmmm, steal the movies?” Chen’s answer: “we have to keep in mind that we need to attract traffic. how much traffic will we get from personal videos? remember, the only reason our traffic surged was due to a video of this type.”

And here’s what it looks like… Lou Reed Exploited By American Express, AT&T, Chevrolet, Chili’s, Lysol, Pottery Barn, Vons, Domino’s Pizza, Netflix, Galaxy Nexus and Ron Jeremy!

LouReedGoogleSearch

LouReedAMEX

LouReedNETFLIX

LouReedDOMINOS

LouReedGalaxyNexus

LouReedVONS

LouReedPOTTERYBARN

LouReedLYSOL

LouReedCHILI'S

LouReedCHEVY

LouReedATT

LouReedTPBPORN

* Forced Labor? Hyperbole? With no ability to opt out, without being granted choice, consent or the ability to negotiate our wages, what else is it?