LouFest 2014: Cake’s John McCrea Talks | MusicTimes

“As much as I hated major labels and indie labels, probably more than anyone I know, one thing you can say for them is that they were able to translate the success of one band and invest in a new band that no one knew about. And there is nothing currently that is actually doing that anymore. So that’s a structural problem. But you know who is going to fight to keep the current status quo are the tech companies that have grease running down their faces and hands from the fat of their plunder.”

READ THE FULL INTERVIEW AT MUSICTIMES:
http://www.musictimes.com/articles/9699/20140905/cake-john-mccrea-talks-follow-up-showroom-compassion-loufest-2014-distance-music-industry-tech-companies.htm

Spotify’s Daniel Ek is Really Bad At Simple Math, “Artists Will Make a Decent Living Off Streaming In Just a Few Years”

The future of music for artist revenue streams seems more uncertain than ever. Digital Music News is reporting a quote from Spotify’s Daniel Ek on CNN Money which appears to show the failure of the companies CEO to perform simple math.

It should be noted that Daniel Ek was also the CEO of uTorrent, “the world’s most popular Bit-Torrent client” which is advertising funded.

Spotify CEO: “Artists Will Make a Decent Living Off Streaming In Just a Few Years” | Digital Music News

CNN: At what point can an artist survive on a Spotify income?

Ek: Well, I mean, the interesting thing here is that we’re just in its infancy when it comes to streaming. And we just last week had an artist announcement where we basically said if there would be 40 million subscribers paying for a service like Spotify, it would be more than anything else in the entire music industry, including iTunes.

We don’t want to say Mr.Ek is lying, but he does appear to be very bad at simple math and to be misinformed about the actual size of the record business and the revenue being generated by Apple’s Itunes.

Is anyone actually capable of doing simple math in a spreadsheet? Here goes. 40m Spotify Subs at $10 a month is only $3.3b in annual revenue to artists and rights holders at paying out 70% of gross. How is $3.3b “more than” the current $15b total annual global revenue or the $7b in domestic revenue in the US?

Here’s the simple math…

40,000,000 * $84 = $3,360,000,000

$84 dollars per subscriber annually is calculated at $10 per month per subscriber paying out 70% to Artists & Rights Holders or, $7 per month. $7 per month, multiplied by 12 months equals $84 per year, per subscriber payable to Artists and Rights Holders.

40m Subscribers x’s $84 per year = $3.3b in annual global revenue to artists and rights holders (assuming they really are paying out 70% of gross).

Simple math.

If you are an artist you might also read these links below:

Music Streaming Math, Can It All Add Up?

Venture Capitalist Admits Artists Can Not Make A Living On Streaming Royalties…

The Internet Empowered Artist? What 1 Million Streams Means To You!

Streaming Price Index : Now with YouTube pay rates!

It appears to us that music streaming can only truly be profitable to those with participating equity in the streaming company itself. Those with equity are leveraging their catalogs of assets against the potential revenue of an IPO (in which the catalog of assets is being leveraged for that equity). Thus far however, it appears that the artists and songwriters who have created those assets as the basis for that equity leverage do not participate in any profit sharing that the equity shares may earn.

So it’s not that music streaming can not be profitable, it’s just that it can not be profitable (or equitable) to artists.

Please tell us which artists are being compensated from the $3b sale of Beats music to Apple? Let’s see a show of hands… Bueller… Bueller… Bueller…

Remember when we were told that in countries where music streaming was the most successful that transactional sales also increased? We’ve got a bridge in Brooklyn to sell you too, and cheap. More food for thought below.

Streaming Isn’t Saving the Music Industry After All, Data Shows… | Digital Music News

Album Sales Hit A New Low | Billboard

No Surprise Here: Spotify Streams Soar While Track Sales Fall | Billboard

 

Musicians POV: Spotify Isn’t Good for You – Full Post

The Trichordist

Mikey’s Not Here

If you remember the old “Life” cereal ads, they featured kids who didn’t want to eat Life cereal because it was “good for you” so who would like that?  Test it out on “Mikey”, the hyper critical eater—”Give it to Mikey, he hates everyhing!”  And surprise, surprise, Mikey likes it.

So it is with Spotify.  Mikey may eat it, Mikey may even proselytize about its wonders of valuation, but Spotify is not only not good for you, it’s actually bad for you.  The good news is (maybe) there’s something every artist can do about it.  Unless, of course, they listen to “Mikey”.

Here’s the proposition:  From a financial point of view, Spotify’s payable royalties are neglibible–marginally better than a pirate site.   (See “Streaming Price Index“) Spotify is, of course, a licensed service and it is encouraging to see investment pouring in to its coffers.  Make no mistake–we’re…

View original post 2,248 more words

Principles for an Ethical and Sustainable Internet

As the Copyright Act remains under review we should keep in mind the principles that guide an ethical and sustainable internet economy for all stakeholders.

The Trichordist

Technology may change but principles do not. A society that encourages the creative spirit is rare in history and worth defending. The internet and digital technology have opened up many new opportunities for artists, but it has also opened up new opportunities for those who wish to exploit those artists.

We offer for discussion a set of principles as a guide for companies and policy makers to keep in mind. It is our hope that these principles will help build a sustainable online creative ecosystem, one that benefits creators, innovators, and the general public alike.

1. FAIR AND ETHICAL LABOR PRACTICES: RESPECT WORKERS’ RIGHTS
A fair and ethical internet is built on the respect and protection of the rights of individuals to determine who benefits from their labor and creations.

Since the rise of digital utopians in the 1990s, we’ve unfortunately seen many very old arguments surface as to why…

View original post 1,065 more words

Two Simple Facts about Technology and Piracy : iTunes Vs. YouTube

It’s about intent. Machines do what they are told to do by human beings, exploiting other human beings.

The Trichordist

Fact number one.

Unlike Google’s YouTube, Apple’s Itunes Store does not have a piracy problem, nor does it have an unmanageable issue with DMCA notices. This is often explained that this is because Apple does not allow user generated content from just anyone, therefore there is a barrier to entry that prevents such issues. But this is simply just not true, anyone can upload an album of music to Itunes using any one of the third party aggregation services such as Tunecore or CDbaby. And yet, there are not (as far as we know) hundreds or thousands of DMCA notices and content take downs on Itunes per day, as there are on YouTube. So why is this? In a word, intent.

If Apple, Spotify, Amazon and virtually every other legal and licensed distributor of digital music can put into place, the checks and balances that are capable of managing these…

View original post 372 more words

Full Post: You Can’t Have A Have A Healthy Market Economy Without Property Rights. Why Do So Many In Tech Blogosphere Want To Abolish Cyber Property Rights And Cripple The Cyber-Economy?

The Trichordist

By David Lowery

Can you imagine the outrage if leading voices in Corporate America started advocating that we abolish all individual private property rights? Citizens could no longer own any property. All property would be collectivized. Citizens could no longer profit by creating and owning things. Further what if these same corporate voices used the justification that private property rights were hindering their ability to innovate?

We’d all laugh. Or man the barricades. This would never happen, right?

Well it is happening. This is exactly what many in the tech blogosphere are arguing we should do in the cyber-economy. These faux revolutionaries are arguing that Intellectual Property and the Internet are incompatible so in the name of “freedom” Intellectual Property must go. In the cyber economy ALL property is intellectual property. This means these folks are advocating for no private property in cyberspace. What does that sound like? Depending on…

View original post 2,479 more words

Bit Torrent Mastermind Bram Cohen’s Interview with Andrew Keen

Music Technology Policy

Notice that Cohen never–never–acknowledges that his uTorrent application powers an advertising supported piracy model or even that there is an advertising supported piracy model.  People download music for free from Facebook and Myspace.

Right.

Also note that he says all the BitTorrent employees are in San Francisco–that doesn’t include the development team in Belarus, I guess.

View original post

The Human Rights of Artists

The Trichordist

By Chris Castle

Given the plight of Chinese poet Zhu Yufu today is a good day to think about the human rights of artists. The human rights of artists is a different concept from intellectual property rights, such as copyright. Intellectual property rights are created by national laws, and the human rights of artists are recognized as the fundamental rights of all persons by all of the central human rights documents to which hundreds of countries have agreed.

These rights resonate in a number of international and national documents, but a good international agreement to consider first is the International Covenant on Economic, Social and Cultural Rights that was ratified by the United Nations General Assembly on December 16, 1966. It is important to remember that human rights are fundamental, inalienable and universal entitlements belonging to individuals, individual artists in our case. As a legal matter, human rights can be distinguished from intellectual property…

View original post 1,331 more words

Help Project 72 Close the Pandora Loophole and #respectallmusic

Music Technology Policy

Pandora and Sirius have decided to stop paying performance royalties to artists, producers and background performers who recorded before 1972–in other words, the creators of the greatest music that influenced us all and their heirs.  Billie Holiday, Duke Ellington, Louis Armstrong, Miles Davis, Aretha Franklin, Willie Nelson, Buddy Holly, Jack Teagarden, and everyone in 20 Feet from Stardom. Just to name a few.

This is due to a gotcha in the US copyright law–the Pandora loophole–that supposedly does not extend the SoundExchange royalty to recordings made before 1972 because the U.S. did not adopt federal copyright protection for sound recordings until 1972.  The only problem with Pandora’s position is that there are lots of Members of Congress still in office who passed the 1995 and 1998 laws that created the SoundExchange royalty–and there is no Member of Congress who thought that they were creating a loophole so that Pandora…

View original post 255 more words

Garth Brooks Says I’ll Take The 80, They Can Have the 20

Go Garth! Why choice for artists remains important.

Music Technology Policy

When Garth Brooks was at his peak the last time around, I remember a story about him that stuck.  Garth visited the sales teams at some of the biggest retailers along with his label sales executives to discuss the set up for one of his albums.  After they’d all visited for a bit, Garth asked the label execs to leave the room and he stayed with the retailer’s sales teams.  “Now tell me what you wouldn’t tell me if they were in the room,” he said (or so the story goes).

That, you see, is a business-savvy artist.  This isn’t for everyone, but if artists are interested in their business, this is exactly the kind of thing you should do.

So it’s not surprising that Garth Brooks has held his records back from digital distribution all this time.  Apple wanted to commoditize his albums by forcing him to sell on…

View original post 837 more words