Full Post At nycruen.com here:
http://nycruen.wordpress.com/2014/05/21/theyve-manufactured-that-consent-because-they-need-that-consent-and-were-gonna-blow-it-up-video/
There is an interesting story breaking in the UK’s Guardian about negotiations between indie labels rights organization Worldwide Independent Network (WIN) and Google’s YouTube.
“Music industry trade association the Worldwide Independent Network (WIN) has accused YouTube of strong-arm negotiating tactics trying to force indie labels to sign up to the new service.
WIN, which represents independent labels worldwide, claims that YouTube is approaching labels directly with a “template contract” and threatening that if they do not sign it, all their music videos will be blocked on YouTube.”
Bring on the black out? How ironic would it be that Google would resort to content blocking as the champions of an open internet and freedom of speech online.
We can see it now…
READ THE FULL STORY AT THE GUARDIAN UK:
http://www.theguardian.com/technology/2014/may/22/indie-labels-youtube-subscription-music
Earlier this week Digital Music News reported that Google is getting over 1 million DMCA take down requests per DAY! If this isn’t the single greatest illustration of the failure of the DMCA to protect artists and creators we don’t know what is.
No matter how many notices can be sent, or the standardization and efficiency in doing so, the volume of infringement far exceeds any rational ability to combat the flood of infringement.
The only logical solution is to fix the DMCA whereby when a valid notice is sent and complied with, that the infringing content can not be re-uploaded again, and again and again as we detailed in our post “The DMCA Is Broken.”
These videos below illustrate the issue, both present testimony from the Congressional hearing on March 13, 2014.
We’d also like to thank Congresswoman Judy Chu for acknowledging and entering into congressional record our post by Chris Castle on how to address these issues with the DMCA. Video below.
You can read that post here:
Is there anyone left in the record business with common sense and a calculator?
David Pakman wrote an interesting piece asserting the problem with streaming services getting up to scale is a matter of pricing. He puts forth that $10 a month, or $120 per year is too much. He claims that the ability of these services to scale should be more in line with a monthly fee of $3-$4, or $36 – $48 a year to appeal to a broader base of the “average” music consumer. We think there are some serious flaws with this line of thinking not the least of which is that we can’t get the math to scale at $10 a month per user!
The first and most important error is that an “average” music consumer does not exist. Sure, you can average the total spending by the estimated number of consumers to find an average per consumer but no “average” consumer actually exists. Some spend many times the average, some spend far below it.
Pakman makes the assumption that music subscription services are over priced citing that the “average” consumer is only willing to spend $64 a year on music. This completely ignores that the majority of highly active music consumers that have historically purchased much more than the average.
Those working in music distribution have always know that the most active consumers, contribute the greatest percentage of revenue to the total. In traditional terms this would be an expression of the classic 80/20 model where the top 20% of consumers represent 80% of the revenue. Conversely 80% of consumers only account for 20% of the revenue overall. This is of course an over simplification but it illustrates the point being made.
Here’s some simple math. Apple’s iTunes boasted 200 million users in 2011. Using Pakman’s own estimates at $64 per “average” consumer, the store should have generated a cool $12.8 billion in revenue. As we all know that’s not true, it quickly illustrates the problem with Parkman’s methodology of the “average music consumer.” Of course Itunes is not the only music retail outlet, and surely not all of those Itunes users were strictly music consumers. Again this is the problem with attempting to define an “average” music consumer to broader market economics.
Pakman also doesn’t fully account for the fact that while music prices dropped nearly in half from $19.98 compact discs to $9.99 downloads the volume of sales continued to decline. This is a decline that began with the introduction of Napster and has spread through the expansion of ubiquitous illegal file sharing networks such as the now defunct Kazaa, Grokster and Limewire.
The single greatest factor effecting both the price of music and the volume of sales, was and remains the illegally free supply of the exact same product available to consumers without risk, investment or consequence by those distributing it for profit without paying for the cost of goods.
But Pakman may have stumbled upon some other points of interest in his observation. First, is that the music business needs to learn how to window releases and build a transactional streaming model as the film business employs. We detailed this in our post “Spotify is not Netflix, but maybe it should be.” Second, there should tiered access on streaming services. A basic $4 a month subscription gets you the hits, say the top 200 current singles and the top 200 catalog albums. For $9 a month you get the hits plus all music more than a year old. For $20 a month you get everything available.
The narrow band thinking of music industry business people is stunning when we don’t need to look any farther than the film and tv industry to see a robust variety of different streaming products for different consumers needs and demands. The film and tv industry successfully window releases and have different pricing tiers based on access and there’s really no reason why these models would not, and can not translate to the record industry.
No surprise to us…
“The ironic thing is that the service that pays the least is the service that’s the most well funded and run by the biggest company in the world: their figures are by far the worst, whether you measure them on a per-stream basis or a per-user basis. I tend to get myself in trouble when I talk about that company…”
Hence his desire not to name them directly, but quote instead from an interview with Billy Bragg conducted by Music Ally earlier this year. “If we’re pissed off at Spotify, we should be marching to YouTube central with flaming pitchforks,” said Bragg – Caldas read this quote out before delivering his own pointed follow-up. “I can’t say Billy’s right, but I can say that he’s not wrong,” said Caldas.
READ THE FULL STORY AT MUSIC ALLY:
http://musically.com/2014/04/30/merlin-youtube-music-payouts-charles-caldas/
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By Count Eldridge
My rebuttal to Steve Albini’s bullet point post. Steve Albini’s poorly reasoned piece was posted, so I feel obligated to try to correct some of the glaring misinformation. I’ve spent the past 2 years working on a documentary called Unsound that addresses the issues that Steve brings up in his post.
You can read the original story here:
http://www.stereogum.com/1678835/steve-albini-thinks-the-internet-solved-the-problem-with-music/news/
On free global music sharing: “The single best thing that has happened in my lifetime in music, after punk rock, is being able to share music, globally for free. That’s such an incredible development.”
It is only an incredible development if you give CONSENT to share that music. Steve seems to have missed the most important aspect of ‘sharing’. Its not sharing without consent.
On consumer choice: “Record labels, which used to have complete control, are essentially irrelevant. The process of a band exposing itself to the world is extremely democratic and there are no barriers. Music is no longer a commodity, it’s an environment, or atmospheric element. Consumers have much more choice and you see people indulging in the specificity of their tastes dramatically more. They only bother with music they like.”
This is one of the most obvious positive aspects of the internet revolution, so Steve is not totally wrong on this piece- only about 95% wrong. Again, Steve seems to have missed the most important point. Music IS a commodity now. That is exactly what Spotify and Youtube have done. And in the process of enriching themselves, they devalued what we spent out entire lives creating.
“You can literally have a worldwide audience for your music… with no corporate participation, which is tremendous.”
No corporate participation? Is he serious? Google, Apple, Facebook, Comcast, and Spotify are the biggest, most powerful corporations we have ever seen. Apple alone is bigger than Exxon Mobile. That doesn’t necessarily mean they are bad. In fact Apple are really the good guys in all of this. But I can assure you that corporate participation is happening at all levels, and many of these corporations are exploiting artists on a level that makes those big bad labels Albini likes to complain about look like angels.
On the economics of streaming services: “I think they are extremely convenient for people who aren’t genuine music fans, who don’t want to do any legwork in finding bands, [but] I think there is incorrect calculus being done by the people who are upset about them. I actually think the compensation is not as preposterous as anyone else. It’s like complaining that cars are going faster than horses.”
No Steve, it is your math that is incorrect about streaming services. An independent artist that could eek out a living selling 12,000 copies of their music simply goes bankrupt if those 12,000 people start streaming that music instead of buying it. The math could not be more simple. It seems Steve has fallen for the myth that Spotify has perpetuated. They love to talk about “scale”. If only their company could “scale”, then everyone would win! Wrong! Only Spotify wins. Steve, tell me why it is that you want so badly to support the IPOs of major corporations at your own expense? Why do you want to subsidize their businesses of the backs of creators? Why do you want to enrich these middlemen?
And his point about convenience? What could be more convenient than clicking one button on iTunes? Or even better, streaming my music on MY website instead of Spotify and Youtube, which only enriches those corporations at the expense of artists. Steve is supposed to be railing against the big corporations. Clearly he hasn’t thought this through.
On the publishing industry: “Publishing was a racket. It was not a legitimate part of the music business. It never operated for the benefit of songwriters. Of all of the things that have collapsed in the music paradigm, the one I am most pleased to see collapse is the publishing racket.”
Dont like publishing deals, then simply don’t sign one. Deal with your own publishing. Nobody forces any artist to sign a deal. But artists don’t have a choice when it comes to Youtube and pirate sites. And realistically, artists don’t have much of a choice but to be on Facebook and Spotify either. But this issue of publishing is irrelevant to the conversation, as it has nothing to do with the internet revolution or anything ‘new’.
On the primacy of live music: “I think that’s a totally much more direct and genuine way for an audience to pay for a band, and a much more efficient means of compensation.”
Efficient?? Is he kidding? Driving across the country, or flying half way around the world to perform your music for fans is NOT efficient. Selling them a file which they can play any time is the ultimate in efficiency. And streaming (if it paid artists properly) would be just as efficient. But live performance is the absolute worst way to compensate an artist, and doesn’t address compensation for songwriters, producers, and engineers. Live performance is the most expensive, least efficient way to deliver music to someone. If you are lucky enough to even be able to get gigs in this competitive market, they probably won’t be profitable enough for you to continue doing them even if they are well attended.
Don’t get me wrong. There are many positives here that should be pointed out. In fact many, if not most, of the problems that plagued the music business have improved…except for the whole making a living part. Sadly, that part has actually gotten worse. An artist’s ability to perform live for fans has actually become more difficult. First of all, most bands lose money touring. Everyone in the music business should know this. This is why record labels used to give tour support. Touring has always been a loss leader for record sales. Eventually the lucky few who gain large fan bases over many years do actually make money touring. These are the 1%. All of the rest of us just hope to break even and sell a few recordings.
Secondly, the amount of bands trying to tour to make a living is exponentially increasing, while the number of venues and days in the year stay the same. It is physically impossible for all of the artists who actually have significant fan bases to tour. There are simply not enough dates and venues. Furthermore, even if there were more venues, people simply won’t see live shows every day, but they will listen to recorded music every day. In fact, people are consuming more music than ever. This means we MUST solve the problem of monetizing recorded music. Sean Parker and the Spotify folks love to spread this misinformation about how artists make money from touring. But we all know most artists loose money touring. If touring is so profitable and efficient, perhaps Spotify should change their business model and leave their families and friends for months at a time and go on tour hand delivering music to people one city at a time.
Instead of perpetuating the myth that artists make money touring, those in the music industry who know better should be focussing hard to make the delivery and monetization of recorded music better for artists by making it more efficient. This means less middlemen (or no middlemen) taking a smaller cut, rather than allowing a few giant corporations and rogue pirates to profit enormously from our work.
On cutting out the middleman: “On balance, the things that have happened because of the internet have been tremendously good for bands and audiences, but really bad for businesses that are not part of that network, the people who are siphoning money out. I don’t give a fuck about those people.”
There are now just as many middle men than before, and they are indeed siphoning out most of the money, leaving fractions of a penny for artists. The difference is that today’s middle men are ripping you off far worse than the middle men from before the internet, yet they invest nothing back in to the artists who make their platforms even possible. I know what Steve is probably thinking right now. “What about those big bad labels! They took a big percentage!” Don’t try to introduce labels into this issue. This is a distribution problem. Love them or hate them, labels invest in artists and take a huge risk. What does Youtube or Spotify invest annually in artists?
Sadly, it seems Steve Albini is so far out of touch that he doesn’t even realize that he is not railing against ‘the man’. Instead, he is playing right into their hands.
I really need to finish my film Unsound before more artists and music fans get fed more of this kind of misinformation.
-Count
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Google’s True Colors as Lobbying Goliath Revealed
Sunday’s Washington Post featured a story, “Google, once disdainful of lobbying, now a master of Washington influence” that examined the company’s rise to become a top dog among Washington influence peddlers. For Google watchers revelations in the piece, authored by Tom Hamburger and Matea Gold, come as no surprise. However, for those who continue to regard Google as the web’s guardian angel of “free speech,” the story should add a bit of tarnish to its halo, illuminating the company’s extensive back-door maneuverings — the new normal in DC’s world of political puppeteering.
READ THE FULL POST AT VOXINDIE:
http://voxindie.org/Google-Washington-lobbying-game
We’ve loved this story from the start of how a band creatively managed to raise money on Spotify by having their fans stream a silent album, overnight, as they slept. It appears that the Spotify is none to amused when artists are actually great innovators in developing new solutions to actually get paid…
After $20,000 Is Raised, Spotify Rips Down the ‘Sleepify’ Album…
Last month, Vulfpek released a completely silent album on Spotify to finance a free tour for fans. That was laughed off by Spotify at first, until Vulfpek earned more than $20,000 on the idea. That prompted a big response: according to the band, Spotify’s lawyers first asked nicely, then started ripping it down
READ THE FULL STORY AT DIGITAL MUSIC NEWS:
http://www.digitalmusicnews.com/permalink/2014/04/24/spotifyripsdownsleepifyalbum
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Gigaom: You have an incredible vantage point. You are an artist yourself, you work with other artists; you also have a record label. You are constantly on tour. Can you talk a little bit about impact of things like Spotify, iTunes and all the digitization of music? There’s a lot of people who don’t care much about Pandora and Spotify.
Rob: It’s great that people can explore different artists, find music on Spotify, YouTube, things like that. At the same time, do I think that it’s sustainable for the music community? I don’t think so, because a lot of this money just goes back into the pockets of the tech companies. Before, it would go to major labels some things like that.
I’m not defending major labels, but at least major labels would take some of that money, and invest it to find and develop new artists, and trying to give artists a career. That’s the one…for me kind of missing link in this whole equation is that, that money goes to Google Play or goes to iTunes or goes to Pandora or Spotify.
The royalties are miniscule. Also, those companies don’t make it a habit to invest in new music, new art and new talent. It keeps a lot of resources from coming back into the community.
READ THE FULL INTERVIEW AT GIGAOM:
http://gigaom.com/2014/04/18/the-gigaom-interview-thievery-corporations-rob-garza-on-how-we-live-in-a-streaming-world%C2%9D/
In 2009, Warner blocked videos on YouTube by not only their artists but by anybody using bits of their music. This period gave researchers a chunk of data to compare and after doing their statistical magic on all other causes, found that the “blackout had both statistically and economically significant positive effects on album sales, specifically the best-selling albums in a week.”
The paper is available for free:
“Online Music, Sales Displacement, and Internet Search: Evidence from YouTube”
The key point seems to be that for top-selling albums by artists with which listeners are already familiar, YouTube’s free listening acts as direct competition to sales of such albums. In fact, they seem to claim that not having videos on YouTube increased sales by “on average 10,000 units per week for top albums.”
READ THE FULL STORY AT HYPEBOT:
http://www.hypebot.com/hypebot/2014/04/report-claims-that-releasing-youtube-music-videos-reduces-album-sales.html
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