Internet Consultants Are Wrong : Confused About Musicians, The Internet and Piracy

Piracy and Streaming seem to have a lot in common in the (false) arguments presented by tech bloggers…

The Trichordist

There’s a post on a tech blog from 2009 following The Pirate Bay guilty verdict titled “Paul McCartney’s Confused About The Pirate Bay” that truly illustrates how many internet consultants and tech blogger’s appear feel about musicians. The  comments responding to Sir Paul McCartney speaking about the Pirate Bay verdict show just how much these people don’t seem to understand musicians.

In this one post we see all of the major anti-artists talking points that Silicon Valley interests still use against creators in a disinformation campaign that is over a decade long:

– artists are easily confused about the internet and technology
– artists don’t know what’s best for them (let the “consultant”  help you!)
– artists can get paid, but as long as its not via a “government mandated tax” ie, copyright (!?)
– artists shouldn’t be able to live off of one song (royalties)…

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Let The Heads Roll…More Genius From The Record Industry Braintrust or Mark Mulligan Gets a Calculator…

Happy Halloween and welcome to the scary stupid post of the day…

We’ve been saying this for a long time, music streaming math just doesn’t add up. Would someone please buy some calculators for the record industry braintrust that keeps making these stupid deals? Seriously, it’s just math and it’s not that hard… even Mark Mulligan is getting it… no kidding…

$2.3 Billion In Net Loss To Artists and Labels Per Year

The report extrapolates that YouTube Music Key will generate $400 million in revenues in its first year. But over the long run it will also be responsible for more than $2.6 billion in lost subscription revenue yearly. That’s a negative net impact of $2.3 billion in lost music revenue every year, according to the study.

Ok, that’s YouTube. Let’s revisit how the Spotify math works…

If you own a calculator, let’s just do the math one more time, real slow and simple like…

1) Spotify and former uTorrent CEO Daniel Ek says Spotify only needs 40m paid subscribers for streaming to be sustainable for artists. But that math just doesn’t work.

2) $10 per month subscription = $120 per year per subscriber

3) $120 per year, per subscriber paying out 70% of gross to rights holders equals $84 per subscriber, per year.

4) $84 per subscriber, per year x’s 40 million subscribers equals $3.4b per year in top line gross revenue to ALL rights holders. That’s $3.4b for labels, artists, publishers and songwriters combined.

5) $3.4b per year is HALF of the current revenue of $7b per year where the domestic business has been flat lined.

6) Assuming you could DOUBLE the subscription base to 80m PAID in the USA within two years by dropping the price in HALF to $5 per subscriber per month you still only gross (wait for it…) $3.4b a year in revenue.

We know this is shocking to the math impaired, but doubling scale (imagined as it is) while cutting the subscription fees in half, actually nets you the same amount of money. Shocking the things one can learn with a calculator or a spreadsheet.

Maybe we’re all screwed, but we will not go quietly and we’re gonna call it how we see it on the race to the bottom. We will document the stupidity undoing the business. Maybe it’s time for Lucian Grange to get out that axe again and let people know what time it is? #stopthemadness

READ THE FULL POST AT HYPEBOT:
http://www.hypebot.com/hypebot/2014/10/youtube-music-service-could-cost-artists-labels-23-billion-in-lost-income.html

RELATED:

Music Streaming Math, Can It All Add Up?

Who will be the First Fired Label Execs over Spotify Fiasco & Cannibalization?

Streaming Is the Future, Spotify Is Not. Let’s talk Solutions.

Government Capture and Google’s Crony Capitalism Assault on America

Music Technology Policy

In case you haven’t noticed, Google has been conducting an all out assault on powerful positions in the U.S. Government.  Note that I say “the U.S. Government” and not “the Obama Administration” for a reason–it just happens, it is merely coincidental that President Obama is the occupant of the White House during Google’s rise to power.  Focusing on the political party of the White House misses the point–David Duke could get elected president and Google would still be playing the same game.  And it’s a game as old as mankind.  Using money to gain influence and using influence to gain power.

Because, as Erik Telford writes in Townhall, “Google [is] the Halliburton of the Obama Administration.”  Even Politico’s Google booster Tony Romm said “The Obama Administration recently plundered the search giant’s ranks.”  Andrew Orlowski wrote four years ago in the Register, “Google is Obama’s Halliburton: So Who’s…

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Blake Morgan Explains the #irespectmusic AND I VOTE! campaign and the Importance of @respectcreators at @thebitterend Show in NYC

Music Technology Policy

On October 14, Blake Morgan and a great line up of performers hosted a sold out standing room only live show for the #irespectmusic AND I VOTE! campaign at the legendary Bitter End in Greenwich Village.  In addition to stellar performances by City of the Sun, Jus Post Bellum, Coyle Girelli and Janita as well as a rousing speech supporting artist rights by Congressman Jerry Nadler that brought the house down, Blake told the story of the #irespectmusic activism and the voter registration campaign.  (See event review here at Doo Bee Doo Bee Doo.)

I highly recommend watching this video of Blake’s inspiring short speech about the evolution of his activism, the voter registration drive and the Congressional Creative Rights Caucus.

Tell your friends, sign the petition and VOTE on November 4!

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Shootout At the Fantasy Factory Part 2: What Should Streams Mean for Royalty Escalations?

If 100 streams = 1 Song Download, why doesn’t the money match?

Music Technology Policy

As we noted in a prior post, Billboard reported on what might be called the “chart value” of streams compared to downloads.  To the extent that streams are counted in both the Billboard charts and the UK’s Official Charts, streams are valued at 100 streams to one permanent download.  This ratio was touted by Spotify at the recent artist meetings hosted by the Featured Artist Coalition in New York.

When you consider the royalty value of that ratio, however, those 100 streams are rewarded at a much, much lower penny rate than a download, even if you compare 100 streams to the $0.70 price of the lowest iTunes wholesale price of downloads.  As we noted previously, the 100:1 ratio implies a per-stream royalty of $0.007.

What About the Royalty Value?

Experience suggests that this seems high.  Quite high.  So just to confirm what Spotify representatives actually said at the…

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When Iggy Pop can’t live off his art, what chance do the rest have? | The Globe and Mail

But a new reality has tripped him up and it’s the same one shafting artists all across the world: Namely, that everyone wants to listen, and no one wants to pay. This week, Iggy gave a lecture for the British Broadcasting Corp. called Free Music in a Capitalist Society. Artists have always been ripped off by corporations, he said; now the public is in on the free ride, too: “The cat is out of the bag and the new electronic devices, which estrange people from their morals, also make it easier to steal music than to pay for it.”

To keep skinny body and maverick soul together, Iggy’s become a DJ, a car-insurance pitchman and a fashion model. If he had to live off royalties, he said, he’d have to “tend bars between sets.” As I listened to his enthusiastic stoner Midwestern drawl, I thought: If Iggy Pop can’t make it, what message does that send to all the baby Iggys out there? In a society where worth is judged by price, for better or worse, what are you saying to someone when you won’t pay for the thing he’s crafted?

READ THE FULL STORY AT:
http://www.theglobeandmail.com/globe-debate/when-iggy-pop-cant-live-off-his-art-what-chance-do-the-rest-have/article21154663/

c3 : DEMONSTRATE TO SUPPORT ARTISTS RIGHTS !

Announcement From c3 (The Content Creators Coalition)

“Google is in the process of systematically destroying our artistic future… if the creative community doesn’t intervene now, and by now, I mean, fucking now — we will be bound to a multigenerational clusterfuck that will take 40 to 50 years to unravel.” – Kurt Sutter Attacks Google: Stop Profiting from Piracy (Guest Column) | Variety

DEMONSTRATE TO SUPPORT ARTISTS RIGHTS
when:  THIS SUNDAY, Oct 19th, at 4:30-5:00pm
where: Google 8th ave btwn 15th and 16th sts in Manhattan)

MARCH WITH US at 4pm sharp from Le Poisson Rouge
(158 Bleecker St., btwn Sullivan and Thompson in Manhattan )
—OR—
MEET US at Kelly Park at 4:15 pm
(W 16th St., btwn 8th and 9th avenue in Manhattan)

This action is sponsored by the c3, the Content Creators Coalition, a non-profit organization dedicated to the achievement of economic justice in the digital domain.

*  Google: Stop the Attack on Artists’ Rights.
*  Google/YouTube: Pay Creators For All Use Of Copyrighted Materials: When Profit Is Being Made, The Artist Must Be Paid:  Support An Artists Right To Choose: Take-Down-Means-Stay-Down!
*  Google: Stop brokering ads to corporate black market sites.

Please Forward

SUPPORT ARTISTS RIGHTS! #supportartistsrights
Join Us: ccc-nyc.org http://ccc-nyc.org/

c3_NYC101814

Shootout at the Fantasy Factory: What’s the Value of a Stream?

Chris Castle at Music Tech Policy beats us to the punch on more Spotify shenanigans… if 100 streams = 1 song download, why don’t the economics match?

Music Technology Policy

The erudite Harley Brown reported in Billboard about Spotify’s artist relations charm offensive in New York that:

[Blake Morgan’s] main complaints were manifold, but two were based on the meeting’s central tenets: that the per-stream rate is never going to go up (70 percent of revenue goes to royalties) and 100 song streams equals a sale on the Billboard charts and the U.K.’s Official Charts Company. With regard to the former, both [Mark] Williamson [of Spotify] and [Paul] Pacifico [of the Featured Artist Coalition] stress that Morgan (and a few other malcontents) didn’t pipe down long enough to let Spotify help the uninitiated artists in the room understand their position.

“What I was trying to explain,” Williamson says, exasperation emanating from his voice over the phone, “Is that we’re a revenue share model. How do we increase the amount of revenue — the pot of royalties — which increases the amount we…

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Marc Ribot Talks Respecting Artists’ Rights | The Talk House

We’re organizing to fight back. We’re going to give value to the ineffable, uncountable and immeasurable beauty being destroyed. We’re going to give voice to the creators whose work — and lives — are being devalued by tech-corporate greed. We’re going to fight for the sustainability of the culture we all enjoy. We don’t have the lobbying millions of the tech-corporate giants, but we’re going to win. Because the truth is a powerful slingshot.

Editor’s note: If you’re in the New York area, by all means go to “Benefit for Content Creators Coalition (c3): Defend Artists’ Rights: Economic Justice in the Digital Domain!” on Saturday, October 18, 2014 at Roulette.  The show features: John Zorn, Eric Slick (Dr. Dog), Steve Coleman, Marc Ribot, Henry Grimes, Marina Rosenfeld, Trevor Dunn, Brandon Seabrook, Satomi Matsuzaki (Deerhoof), Amir ElSaffar and more. You can buy tickets here.

READ THE FULL INTERVIEW HERE:
http://thetalkhouse.com/music/talks/marc-ribot-talks-respecting-artists-rights/