Just a Word About Thom Yorke and Bit-Torrent…

We’ve been here before. We know how this story ends as it did previously for both NIN and Radiohead. We remember those experiments too and we remember what was said after that fact.

Let’s be clear:  Bit Torrent Bundles is taking advantage of an installed base of 170 million plus users that they obtained for one reason and one reason only–they have a product that they have perfected into the best tool for piracy in history.  And understand, this is not just some kid in a dorm room who came up with some software.  This is a commercial company that improves and perfects its product and has done so for 13 years.  There’s nothing spontaneous about this company that suddenly are shocked, shocked that there is piracy going on with their application.  Check out Andrew Keen’s interview with Bit Torrent founder Bram Cohen and Cohen’s unconvincing regurgitation of the Lessig excuses for stealing from artists.

Bit Torrent has been struggling for years to commercialize that installed base whether it’s through selling over 5 billion ads a month in the uTorrent browser or now by a supremely innovative business model–selling downloads.  Selling downloads was perfected by iTunes over 10 years ago and selling ads to profit from piracy is as old as Google Adsense.  So what’s innovative about Bit Torrent Bundles?

What’s innovative is that having stolen the audience from a vast number of creators, be they artists, film makers, authors, photographers, illustrators, free lancers and others, and from investors in creators, be they record companies, music publishers, book publishers and others, Bit Torrent now wants to sell the distribution channel it stole back to those who are solely responsible for creating it.

This is a form of blackmail, pure and simple.  This is why there are unfair business practice laws to protect the public from people like Bit Torrent.

If the artists participating in the Bit Torrent Bundles program are able to overlook Bit Torrent’s history, that is their decision.  If they can sleep at night knowing they are profiting from the massive theft of other peoples creations, then bully for them.  If they think it’s good logic to compromise themselves for the opportunity to sell to a mailing list of shoplifters, then we’re also looking forward to their solution for 2 plus 2 equals -5.  Please show the work.

And most importantly:  If these artists think that it’s a good idea to legitimize Bit Torrent without requiring the company to do something about the massive theft they support, then so be it.  We get it.

These type of “experiments” generally only work if the artist is someone who has had the benefit of more than a decade of marketing and promotion paid for by a multinational corporation spending millions and millions of dollars.  Which is why these artists are also the top tracks being stolen using the Bit Torrent application.  If there is logic to this, please let us know.  It just looks like the typical Big Tech shakedown.

Why?  How much money has Bit-Torrent invested in Radiohead’s career? Zero. But hey, they have distributed hundreds of millions of copies of the bands catalog to consumers without compensating the band a penny. Not one cent. Ev-er.  And now they have the brass to charge artists a distribution fee for Bit Torrent Bundles?  If Bit Torrent gave the artists the service for free, that would at least make some kind of sense.  But as usual, Big Tech just heaps insult on injury on insult.

When BitTorrent takes care of the 99.7% of infringing material they distribute, that will be cause for celebration.

RELATED:

BitTorrent, “Not Designed For Piracy”… Really? Seriously? 99% Infringing…

BitTorrent 99% Infringing, 100% Disinformation… now with Ads.

BitTorrent’s Dictator Problem. Belarus is Worse than Russia, Why Does Bittorrent Operate Development Center in Minsk?

DMCA “Takedown” Notices: Why “Takedown” Should Become “Take Down and Stay Down” and Why It’s Good for Everyone | Nova Edu

We reported on this earlier this year and it’s great to see other voices stepping up!

by Stephen Carlisle

In other words, Google’s not going to do anything unless Google gets a slice of the profit. When asked, shouldn’t search engines have an affirmative duty to prevent the reposting of materials, she responded that it would be “impractical to enforce and it would chill online speech.” 19 This answer begs the question: since when is the repeated posting of “blatantly infringing” material online protected speech? To quote the Supreme Court of the United States, the First Amendment “securely protects the freedom to make—or decline to make—one’s own speech; it bears less heavily when speakers assert the right to make other people’s speeches.” 20 According to the RIAA, they have sent more than two million takedown requests to Google about the website mp3skull. Despite this, mp3skull continues to top Google’s search results for “artist+songname+download.” 21 Whose speech is being chilled here?

READ THE FULL STORY AT:
http://copyright.nova.edu/dmca-takedown-notices/

RELATED:

DMCA “Take Down and Stay Down” Is The Logical Solution to a Flawed Loophole [VIDEO]

 

https://vimeo.com/94514834

Spotify Doesn’t Kill Music Sales like Smoking Doesn’t Cause Cancer…

This just in from Digital Music News, we’re not surprised. The death spiral towards the $3b annual record business is accelerating… One word to artists and music executives reading this post… “WINDOWING”…

May 10th, 2013:

“We have data that’s proving and demonstrating the fact that streaming revenue is additional to actual unit download consumption or physical music sales…”

Katie Schlosser, Spotify Account Manager of Label Relations, speaking at NARM.

September 12th, 2014:

“Streaming consumers are buying few albums.  30 percent of consumers are music streamers and a fifth of these consumers pay to stream.  Streaming has driven new market growth in countries such as Sweden but in larger markets such as the US it is denting digital music buying.

READ THE FULL STORY AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2014/09/12/research-now-shows-streaming-kills-download-sales

RELATED:

Why Spotify is not Netflix (But Maybe It Should Be)

Spotify’s Daniel Ek is Really Bad At Simple Math

Merchants Of Doubt in Silicon Valley : What Every Musician Needs to Know About Ad Funded Piracy

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

‘Piracy sites don’t love music – they love money’ | Music Week

“A pilot scheme saw a 12% drop in advertising [on piracy sites] from major household brands, the kind of big names that lend legitimacy to illegal sites,” said Javid. “It’s a small first step. But over time the list, along with action taken by payment facilitators, will provide a valuable tool for making copyright infringement a much less lucrative business.

“And that’s the best way to stop the career copyright criminals… Copyright crooks don’t love music – they love money, and they’ve been attracted to the industry solely by its potential to make them rich. Take away their profits and you take away their reason for being.”

Read the Full Story at Music Week:
http://www.musicweek.com/news/read/piracy-sites-don-t-love-music-they-love-money/059475

Sons of Anarchy’s Kurt Sutter Is A Rock Star for Creators Rights

We love Kurt Sutter’s unapologetic response to Google and Silicon Valley’s assault on creators. Below are links to Kurt’s two editorials that are essential reading for all creators to understand what the “internet economy” means for artists of all disciplines.

Kurt Sutter Attacks Google: Stop Profiting from Piracy (Guest Column) | Variety

Google is in the process of systematically destroying our artistic future, and more importantly, the future of our children and grandchildren. They’re spending tens of millions of dollars each year on eroding creative copyright laws. I believe that 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.

The last time this happened was in the 1950s, when the tobacco industry spent millions to hide the truth, and convince everyone that smoking cigarettes wasn’t really dangerous to your health.

Earlier this year, Kurt took to writing a response in Slate to an editorial by Google Lobbyist Marvin Ammori (which lead to a later editorial disclosure of Mr. Ammori’s relationships).

Not-So-Zen and the Art of Voluntary Agreements | Slate

Every writer, producer, actor, musician, director, tech wizard, and fine artist working today needs to be aware of what this all means for our future—we will lose the ability to protect and profit from our own work. Every kid out there who aspires to be an actor or musician or artist: This is your future that’s at stake. More importantly, everyone who enjoys quality entertainment: This impacts you most of all. Content excellence cannot sustain itself if it loses its capacity to reward the talent that creates it. Consider this clunky analogy: If your local car dealership started selling your favorite luxury car for $1,000, then $100, then started giving it away, what do you think would happen to the quality of that vehicle? Before long, the manufacturer would be forced to let go of the skilled laborer, the artisan, and the craftsman, and eventually cut back on everything in the production process. And before long, that fabulous, high-end car you so enjoyed will be a sheet of warped plywood on top of two rusty cans.

Yep, it’s cheap, and it’s shit.

Among the arguments that Kurt brings to light are the use of Merchants Of Doubt tactics by Silicon Valley interests, the mechanics employed by Google and YouTube detailed by The Digital Citizens Alliance and the ability for creatives of all disciplines to join Creative Future for a unified voice against these forces of exploitation.

The Future Of Music According to Gene Simmons and Jaron Lanier…

Gene Simmons may not be the most sympathetic figure in conversations about artists rights in the digital age but there is something to be said when he and Jaron Lanier make essentially the same observations about the future of music and artist revenue streams.

Simmons is quoted in a new interview in Esquire Magazine, “Rock Is Finally Dead”:

“The masses do not recognize file-sharing and downloading as stealing because there’s a copy left behind for you — it’s not that copy that’s the problem, it’s the other one that someone received but didn’t pay for. The problem is that nobody will pay you for the 10,000 hours you put in to create what you created. I can only imagine the frustration of all that work, and having no one value it enough to pay you for it.

It’s very sad for new bands. My heart goes out to them. They just don’t have a chance. If you play guitar, it’s almost impossible. You’re better off not even learning how to play guitar or write songs, and just singing in the shower and auditioning for The X Factor. And I’m not slamming The X Factor, or pop singers. But where’s the next Bob Dylan? Where’s the next Beatles? Where are the songwriters? Where are the creators? Many of them now have to work behind the scenes, to prop up pop acts and write their stuff for them.”

Simmons goes on to state that music and culture have stagnated.  He asks what great bands and artists have emerged in the post internet era?

Jaron Lanier made essentially the same observation back in 2010 in an interview with The New York Times, “The Madness of Crowds and an Internet Delusion.

“…authors, journalists, musicians and artists are encouraged to treat the fruits of their intellects and imaginations as fragments to be given without pay to the hive mind. Reciprocity takes the form of self-promotion. Culture is to become precisely nothing but advertising.

It’s as if culture froze just before it became digitally open, and all we can do now is mine the past like salvagers picking over a garbage dump,” Mr. Lanier writes. Or, to use another of his grim metaphors: “Creative people — the new peasants — come to resemble animals converging on shrinking oases of old media in a depleted desert.”

It speaks volumes when two people of such different backgrounds and perspectives make the same observation.

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

 

David Lowery: Here’s how Pandora is destroying musicians | Salon

David Lowery has become both beloved and notorious over the last year as one of the musicians most critical of the ways musicians are paid in the digital era. The Camper van Beethoven and Cracker singer brings an artist’s rage and a quant’s detached rigor to his analysis of the music business.

He’s currently fired up about a federal lawsuit filed in New York in which several record labels have sued Pandora (and before that, Sirius FM) for neglecting to pay royalties for songs recorded before Feb. 15, 1972. Here’s how Billboard summarizes the suit: “The labels say both digital music services take advantage of a copyright loophole, since the master recording for copyright wasn’t created federally until 1972. … But the labels claim that their master recordings are protected by individual state copyright laws and therefore deserve royalty payments.”

Lowery thinks the loophole provides a way for Pandora to simply not pay older musicians for their work — while profiting from it themselves. The case could get bigger and change in strange ways, with broad implications.

READ THE FULL STORY AT SALON:
http://www.salon.com/2014/08/31/david_lowery_heres_how_pandora_is_destroying_musicians/

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