If the Internet is working for Musicians, Why aren’t more Musicians Working Professionally?

We keep hearing from web/tech gurus about how empowered artists are in the internet age, but yet, the numbers just don’t add up. It’s also ironic that tech bloggers like to promote the idea of  “touring and t-shirts” as a solution to the difficulties musicians are having online. But it really sounds to us, more like an admission that there is no money for artists online in the Exploitation Economy to develop new and sustainable professional creative careers.

This is why, an ethical internet for all citizens is so important. Sometimes, the facts are just so simple…

Ted Cohen: Breaking Through The Noise | | midemblogmidemblog

“The Internet was supposed to be the ultimate leveler, great music would be able to find its audience, the ‘big label’ gatekeepers would no longer control access to the masses.

It hasn’t exactly played out that way. According to my friend, Tommy Silverman/Tommy Boy Records and the co-founder of the New Music Seminar recently told me that he did the math and only 228 artists broke 10,000 units for the first time last year out of 105,000 albums.

That’s 2.17% but only 15 of those did it without the help of a real label.

That’s not very encouraging to the other ninety-eight percent. While tens of thousand of artists are self-releasing their music, their ability to get noticed in a meaningful way is stifled by the sheer volume of music that is arriving daily at iTunes, Amazon, Spotify, MySpace Music, Yahoo, Rhapsody, Pandora, iHeart and others. Ten years ago, there were roughly twenty-five thousand album releases a year.

In 2009, it is estimated that there will be over one hundred thousand albums put into digital distribution. That’s roughly a million new tracks a year, four million minutes of music, or almost three thousand days-worth of song. But, maybe, if I listen really, really fast, I could….nope!”

The numbers below are equally sobering. Not only did the volume of sales drop from 2009 to 2010, but also the number of new releases also dropped. Many promoting the exploitation of artists are also proposing that the new lower barriers for access to distribution will increase creative output, but that also appears to be false.

Business Matters: 75,000 Albums Released In U.S. In 2010 — Down 22% From 2009 | Billboard.biz

75,000 Albums Released In U.S. In 2010 — Down 22% From 2009

Not only were fewer albums released, but the weakest sellers took up a smaller share of new release sales. The 60,000 titles that sold from 1 to 100 units represented 0.7% of all sales from titles released in 2010. In 2009, 0.9% of sales came from the 80,000 titles that sold from 1 to 100 units.

So there were quite a few new albums that sold fewer than ten units.

Put another way, the 60,000 new releases that sold 100 or fewer units averaged just 13.3 units per title.

The statistics above do not support the assertion of the tech blogosphere that the internet has created more opportunities for professional creative careers, or expanded a working middle class of musicians. It’s actually very much so the opposite of their claim.

It’s clear from the numbers above (and continued below) that the democratization of production and distribution has not democratized talent. The most exploited music, is not surprisingly, the most popular. These are the artists and titles which are also developed and promoted by traditional media outlets.

Here’s another interesting stat reported by Digital Music News. Does this look like the empowerment of a new creative middle class to you?

99.9% of Tunecore Artists Make Less Than Minimum Wage…

99.875% – or nearly all – of Tunecore artists are making less than minimum wage through the platform, based on revenue figures recently shared by the company.

Despite this fact, some tech bloggers can’t even understand how the simplest mechanisms function in the recorded music business. In an attempt to discredit some of the reports above one tech blog let lose with this gem below, alleging that because Tunecore and CDBaby releases are not reported directly to Soundscan their releases are not counted in Soundscan stats creating a massive unreported pool of revenue being ignored by the industry.

TuneCore does not report results to Nielsen Soundscan and it puts out a hell of a lot of releases. Similarly, CDBaby/Disc Makers points out that Soundscan doesn’t count its releases either — which number around 50,000.

The problem with the above is not understanding that Tunecore and CDBaby can’t report to Soundscan, because Soundscan collects the data from the point of sale such as Itunes, Amazon, etc. So in fact, all Tunecore and CDBaby releases and sales are actually cataloged and reported by Soundscan afterall. So much for all that unreported sales and revenue.

But of all the numbers, this one is the bottom line. Salon recently reported stats from the Bureau of Labor Statistics that number of working professionals in the music industry are suffering a catastrophic decline. If these numbers were reported by any other industry it would make national headlines:

No Sympathy for the Creative Class

“Musical groups and artists” plummeted by 45.3 percent between August 2002 and August of 2011.”

This is also graphically represented here at Digital Music News:

musiciansindecline

All of this gave us pause when we saw a report given by The Future Of Music Coalition (FOMC) in Digital Music News that artists earnings are benefiting from digital technologies? How? As opposed to what? I can see that some digital technologies may be helping artists, but “overall” is simply, statistically, not true given the information above. So it trouble’s us to see statements like the one below made in public by the organization’s Kristin Thomson at SF Music Tech in February of 2012.

 “Overall, digital technologies seem to be having a positive impact on musicians’ earnings capacity”

Really? Maybe it’s not surprising that FOMC is also aligned with Public Knowledge who held a joint workshop to help musicians understand that, “Copyright law is changing rapidly in the face of new technologies.” The only problem is, copyright law is not actually “changing rapidly,” but it appears that Public Knowledge would like it too! Make no mistake about it, Public Knowledge is advocating for less artists rights and protections.

So the real truth is this; if the internet is working for musicians, why aren’t more musicians working professionally?

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The Trichordist

We keep hearing from web/tech gurus about how empowered artists are in the internet age, but yet, the numbers just don’t add up. It’s also ironic that tech bloggers like to promote the idea of  “touring and t-shirts” as a solution to the difficulties musicians are having online. But it really sounds to us, more like an admission that there is no money for artists online in the Exploitation Economy to develop new and sustainable professional creative careers.

This is why, an ethical internet for all citizens is so important. Sometimes, the facts are just so simple…

Ted Cohen: Breaking Through The Noise | | midemblogmidemblog

“The Internet was supposed to be the ultimate leveler, great music would be able to find its audience, the ‘big label’ gatekeepers would no longer control access to the masses.

It hasn’t exactly played out that way. According to my friend, Tommy Silverman/Tommy Boy…

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This is What Monopoly Looks Like When You Round Up to Zero: Google Play’s Tone Deaf Advertising Campaign “25 Million songs for the price of an album”

Music Technology Policy

Google PlayYouTube’s Director of Artist Relations Vivian Lewit appeared on a SXSW panel this year moderated by Tom Silverman.  I asked the panel a simple question from the audience as did a couple other audience members.  My question was how much per stream does your service pay to artists?  YouTube’s Ms. Lewit was the only one who dodged the question, but after a couple follow ups she confirmed it was less than a penny.  Given the NDA culture surrounding Google, I was amazed to get that much out of her in a public forum.

Now I understand why.

In case you were wondering why IMPALA filed a complaint with the European Commission on Google’s monopolist tactics in licensing the new YouTube service, the Google Play messaging says it all.  It’s a horrible deal for everyone except Google, just like YouTube.  But the real reason its not a bad deal for Google…

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4 Million DMCA Notices Don’t Stop the Google Piracy Machine: How Google Drives Traffic to Pirate Sites Through Google Alerts

The hits just keep un comin’…

Music Technology Policy

Google news alerts are emails sent to you by Google through the data analysis of its monopoly search engine.  Yes, the all seeing Google knows a lot of stuff and they are happy to share it with you so you can share it with others.  Google will send you a link that matches your news alert and will always have social media sharing links to Google Plus, Facebook and Twitter.  (I can’t imagine Google adding the Facebook and Twitter links without some kind of compensation, probably cold hard cash.)

Here’s an example:

Google Alert OK Go

This link goes to a site called myfreemp3.cc which takes you to this page:

OK Go Lyrics Link

In case you were wondering what myfreemp3.cc was all about, how would you know if this was a pirate site?  Or more precisely, how would Google know myfreemp3.cc was a pirate site?  It just looks sketchy, right?  But we all know that we can’t…

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Copyright Stifles Innovation And Creativity! (Says The Internet): It Doesn’t; And Here’s Why | Nova.Edu

By Stephen Carlisle, Nova Southeastern University

If you read the internet, copyright, and especially long copyright terms are an unfathomable evil. In their eyes copyright “hinders learning, destroys our cultural legacy, hurts innovation and the general public, but most importantly it impedes filmmakers, artists, DJ’s and other content creators that need to be able to build upon the work of others to create new content”. 1 There are lots of dire pronouncements, with lots of invective and insults hurled, particularly at the Walt Disney Company (quote “responsible for one of the greatest thefts in world history”) 2. Yet as typical with such cyberspace broadsides, there is very little explanation of precisely how this suppression of innovation occurs.

That’s because copyright doesn’t suppress either creativity or innovation. And here’s why:

READ THE FULL POST AT NOVA SOUTHEASTERN UNIVERSITY:
http://copyright.nova.edu/copyright-does-not-stifle-innovation-creativity/

How Copyright Encourages Creativity and Opportunity in Hollywood

The Trichordist

We hear a lot from the copyleft and opponents of Artist’s Rights that copyright stifles creativity, but this is simply not true. We’re not going to go down the tired road of the arguments about remixing, which can be read in this excellent article at Copyhype titled, “Remix Without Romance.

The truth is, the best ecosystem for creativity is the one where all stakeholders are compensated. This is why in the early 90s sample clearance statutes were defined, and as a result we’ve seen some of the most innovative music, in the history of recorded music. This creativity has been achieved legally by creating fair and balanced policy. Historically, that is how policy evolves, such as it did with phonographs and radio — when both were getting off the ground, the law eventually recognized that artists have a right to be compensated, and both eventually flourished, also benefiting all…

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“Fifteen years of utter bollocks”: how a generation’s freeloading has starved creativity | New Statesman

Arguments for digital piracy are drivel – it’s high time we steered away from this cultural cliff, argues author Chris Ruen.

Piracy may feel like victimless “free culture” to the user, but they are in fact participating in a digital black market. It’s not about information wanting to be free, but rather it’s about exploitative black marketeers and willfully blind tech companies wanting to get rich. They are simply capitalising on loopholes in the regulatory framework. In this sense, mass digital piracy is a symptom of underdevelopment. It’s the Internet Third World, with outdoor markets hawking counterfeit goods and purveyors bribing the local cops to look the other way.

Tech companies will go on skimming profits off the top of this black market until enlightened governments cooperate to squeeze out these illicit profiteers in an effective and transparent manner. As Google’s own Chief Economist Hal Varian has written, “all that is required is the political will to enforce intellectual property rights”.

READ THE FULL STORY AT THE NEW STATESMAN:
http://www.newstatesman.com/culture/2014/07/fifteen-years-utter-bollocks-how-generation-s-freeloading-has-starved-creativity

Here’s How Piracy Hurts Indie Film | IndieWire

The fact is: pirate sites don’t discriminate based on a movie’s budget. As long as they can generate revenue from advertising and credit card payments—while giving away your stolen content for free—pirate site operators have little reason to care if a film starts with an investment of $10,000 or $200 million. Whether you’re employed by a major studio or a do-it-yourself creator, if you’re involved in the making of TV or film, it’s safe to assume that piracy takes a big cut out of your business.

We know piracy won’t go away altogether, and we won’t always agree on the best way to go about disrupting it. But we can agree on a vision for a digital future that better serves audiences and artists alike, and that future depends on reducing piracy.

READ THE FULL POST AT INDIEWIRE:
http://www.indiewire.com/article/guest-post-heres-how-piracy-hurts-indie-film-20140711

Some cold analysis of the YouTube-Indie labels story, and some long term reflections | Wildcat Blog

So what’s going on with Google, YouTube and Indie labels?

There’s been so much fuss, indies tearing their hair, lawyers trying to tone it down: I try to sum up the whole thing here for your delight and delectation.

Alright, this is not a music law blog. It is, however, a blog where law and music meet. So, here we go. If you don’t know the ante-fact, have a read here or here.

And there’s also this update that Google may be revising its position now.

Why is the contract so bad? Wait, is it really bad?

READ THE FULL POST AT WILDCAT BLOG:
http://blog.thewildcat.co.uk/post/91151130569/some-cold-analysis-of-the-youtube-indie-labels-story

Aiding and Infringing : iPad Music Apps – A New Low

HypeBot Reports : Apple Removes Music Download Apps From iTunes
http://hypebot.com/hypebot/2014/06/apple-removes-music-download-apps-from-itunes-1.html

The Trichordist

Advertisers need to capture the mobile market. The problem is the functionality of the some of the most frequented websites by the coveted youth demographic is disabled on iDevices (the inability to download content to the idevice). In other words, there is no draw to pirate websites (and to the advertising they serve) if the infringing music is no longer accessible. Worry no more, there’s an APP for that… note the top grossing and most popular music apps for the ipad…

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adsforGAMES

lovebuddy

And uhm… let’s not worry that ads for Adult Services are being targeted to minors…

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Pan Handling For A Career in Music | Guest Post By Dustin Mitchell of Katagory V

Recently, my band Katagory V created a crowdsourcing campaign to finance the release of our latest album, which had been completed (recorded, mixed, and mastered) over three years ago.  As much as Silicon Valley seems to laud this as “the way” to finance a musician’s work, I personally was very resistant to it for a long time.  This was more of a moral issue for myself than one of not wanting to “get with the times”, as we artists are so often accused of.  Recently, however, it became far more than a moral problem; it became a political one, too.

Don’t get me wrong.  I think the whole crowdsourcing concept is brilliant.  It’s a fantastic way to kick-start your craft if you have no capital to work with and arejust getting started as a band, filmmaker, writer, etc.  It is something I wish had existed when I started my musical endeavor years ago.  However, the more I look at it concerning my own band which has existed for 15 years, I feel like we are essentially panhandling. It is one thing, in my opinion, to use this to “kickstart” your dream career, it is another creature all together when you rely on it as your sole source of income to maintain it.

With that said, let’s not mince words here and just call it what it really is — crowdsourcing is panhandling on the internet.  I can’t be the only person that sees it this way…or am I?  I was raised to believe that hard work and perseverance gets rewarded, and when you reap these rewards, you do so with absolute humility.  Panhandling completely negates what I was taught. Granted, people who contribute get “perks” or a finished product IF…if it succeeds.  However, it is still asking for money for something that doesn’t actually exist yet.  Money for a promise: this is where my moral compass just spins out of control. Are we asking consumers, our fans, to become investors now?

The part that goes beyond my moral problems with this is that we are not crowdsourcing our unreleased album to get our career started, rebooted, as a noble cause, or even to try and break away from the whole record label cycle.  We are doing it because after three years, we have no other choice.  Labels are reluctant to take risks or give advances, consumers are using streaming or free options, both of which obviously pay us nothing, and we don’t have any more capital ourselves to fund it.  Nothing is more frustrating or humiliating than doing something that you find absolutely immoral AND politically backwards, yet knowing that you HAVE to do it as a means to an end.  There is no Plan B or C; this is the ONLY plan left.  It’s very ironic, but one of the songs we had written for this unreleased album, “I Am Change,” lyrically and inadvertently prophesied this very situation.

When I told the members of my band that I was going forward with this panhandling scheme, I insisted that our campaign bio had to explain to our fans WHY we were doing it.  Unlike most artists doing these funding projects, I wanted it spelled out in big bold letterson the front page of the campaign, that thanks to the “new boss,” we had no choice but to have our fans directly fund our work.  Otherwise, this album would never be released.

There are several paragraphs in our campaign explaining what has happened in the music business in the last decade, why our “middle-class” band had been forced at gunpoint to climb aboard the express train to “poverty,” and why we are now holding out our hands, begging for spare change.  By laying out the truth and thus risking the possibility of being viewed as sniveling and whiny, we may be pushing our potential contributors away.

Why would these potential contributors be turned off?  Because NO ONE likes cry-baby musicians.  They literally tune them right out.  Music consumers don’t want to hear our problems.  They just stuff cotton in their ears and mouse click over to the next free meal.  And you know what?  I don’t care…it’s already been three years.  I can wait another three, ten, or even twenty years if it means standing my ground on how I feel about the digital age and how we as artists are being bent over the proverbial barrel more than ever in the history of the music business.

The band was surprisingly supportive of this idea to add this segment to the campaign.  I had been preaching this possible doomsday scenario to them (and anyone else who would listen) as far back as 2007.  I always knew it was going to get worse before it got better when we started recording this album back in 2010; I just never imagined it would get THIS bad with no real resolution in sight.  I can’t help but wonder if this is the end of days for music.

Our fans (and others looking to contribute) need to know the truth.  Of course we want people to contribute; we want this album out there just as much as our fans do, or else we wouldn’t have resorted to creating a panhandling campaign!  If it doesn’t work, this album is going to go back on the shelf indefinitely.  Even if people don’t contribute and they walk away from it with a little education and a better understanding of how things work (or don’t work) in the world of music today, I will personally feel a little better about having to resort to this fundraising tactic.  I can only hope we don’t ever have to take this route again.

The financial ecosystem in which our band had worked under for over a decade has been eradicated.  It’s as if we are living out that John Carpenter movie, “They Live.”  The music industry isn’t even an industry anymore; they/we are the puppets of this new boss.  We put in thousands of dollars of our own money into this album thinking that things would get better, that someone would find this miracle “new business model” that would restore the balance to the force, and that we would at least see a return that would pay back our expenses.  This has yet to happen and, sadly, probably never will.  So now, after three years of waiting for the other shoe to drop, we decided to stop bruising our backsides from sitting on the fence, swallow our pride, and fund our music by turning our band into a PBS pledge drive.  I never in my wildest dreams thought I would be panhandling for my career in music.

Never.

Dustin Mitchell
Bassist/songwriter – Katagory V
website: http://www.katagory5.com