Everyone in the music industry is abuzz with the news that

1. Spotify failed to license much of the Victory Records song catalogue.
2. Spotify failed to pay royalties on these songs.
3. After Victory Records went public Spotify pulled the entire catalogue

Spotify spokesperson Jonathan Prince was quick to say this:

“We want to pay every [fraction of a] penny, but we need to know who [sic] to pay. The industry needs to come together and develop an approach to publishing rights based on transparency and accountability.”

No sorry that’s not how the law works.  You have to have a license before you even use the song on a streaming service.  That means you have to either contact the owner of the songs and directly negotiate a license.  Or you can fall back on a slightly less convenient statutory license (Whereby the federal government compels the songwriter to license at a government set rate). But again, this legally requires the service to send a “Notice of Intent” to the owner stating the service is  going to get a statutory license.  See this means to be properly licensed you have to know who to pay in advance!

So if Spotify doesn’t know “who to pay”  it is clearly because they broke the law and did not send the required legal notices, or obtain direct licenses.   This is Spotify’s problem.  It’s not the industry’s problem. And it’s certainly not my problem.

Further Spotify admits it is  “accruing” royalties on songs for which it has no licenses.

The last time we had a big  “unassigned royalties” problem the New York State Attorney General investigated an extracted a settlement.  Maybe it’s time for New York State Attorney General to look into Spotify’s licensing problem.  You can contact the office here.  I guarantee you that the Victory Records problem is just the tip of the iceberg. Why?

THREE MONTHS AGO I POSTED THIS:

For the past two years I’ve been trying to figure out how it is that Spotify has legally made available many of the songs that I have published under Camper Van Beethoven Music and Bicycle Spaniard Music. In order to make my songs available on their service in the US, Spotify must enter into a direct license with my companies or an assigned agent. OR they must serve an NOI (notice of intent) to take advantage of the statutory compulsory license. After two years I find no evidence that they have properly licensed most of the songs that are currently available on the service. This is the equivalent of a record label releasing an artist’s music without having a contract with the artist (To be fair Apple owned Beats Music may have this same problem as well.)

Further I can find no evidence that they paid the US “mechanical streaming” royalty to my companies or my agents. This is the equivalent of a record label failing to account to, and pay the artist. It is possible that they have been improperly paying the wrong party. However my work is properly registered and my companies are easy to find (through the BMI website).  I even went so far to see if Spotify filed a special notice required by the US Copyright office when a service can’t find a rights holder but still wish to use the song and “blackbox” the money. No luck.

Even more odd is the fact that BMI is paying my public performance royalties for these songs being played on Spotify.  How come they can find me when it comes to public performance rights?

Transparency starts with the streaming services. Where are the legally required licenses, NOIs,  accounting statements and royalties for these songs?
Camper Van Beethoven Music Catalogue

(Includes duplicates as alternate titles)

51 7 Registered 7153325
A C COVER Registered 1806954
ABUNDANCE Registered 3860
AGED IN WOOD Registered 15139907
ALL HER FAVORITE FRUIT Registered 21170
AT KUDA Registered 8893861
ATKUDA Registered 8893861
AXE MURDERER SONG Registered 1806950
BABY DON T YA GO Registered 9541080
BACK TO BEDROCK Registered 77318
BAD TRIP Registered 80449
BALALAIKA GAP DEMO Registered 5448583
BEFORE I MET YOU Registered 9541076
BORDERLINE Registered 139736
CAMP PENDELTON Registered 17316671
CATTLE REVERSED Registered 191364
CHAIN OF CIRCUMSTANCE Registered 195736
CHANGE YOUR MIND Registered 197951
CHEMTRAILS Registered 15139909
CIRCLES Registered 215490
CITY OF INDUSTRY Registered 17316679
CLASSY DAMES AND ABLE GENTS Registered 17316670
CLOSING THEME Registered 5448582
COLONEL ENRIQUE ALDOLFO BERMUDAS Registered 8893863
COME DOWN THE COAST Registered 15139900
COME ON DARKNESS Registered 230914
COWBOYS FROM HOLLYWOOD Registered 253747
CROSSING OVER Registered 1806959
DARKEN YOUR DOOR Registered 17316677
DEUX FOISES Registered 8893864
DEVIL SONG Registered 298731
DISCOTEQUE CVB Registered 8893865
DOCKWEILER BEACH Registered 17316672
DON T YA GO TO GOLETA Registered 331231
DOWN AND OUT Registered 336219
DUSTPAN Registered 350612
EYE OF FATIMA PT 1 Registered 395815
EYE OF FATIMA PT 2 Registered 395816
FIFTY ONE SEVEN Registered 7153325
FIVE STICKS Registered 422620
FLOWERS Registered 426335
FOLLY FOR TWO Registered 429466
FOOL Registered 429796
FORM ANOTHER STONE Registered 437929
FOUR YEAR PLAN Registered 440039
GOLDBASE Registered 17316676
GOOD GUYS AND BAD GUYS Registered 494325
GRASSHOPPER Registered 17316678
GUARDIAN ANGELS Registered 1806951
HEART Registered 545069
HEY BROTHER Registered 8893868
HISTORY OF UTAH Registered 571292
HOE YOURSELF DOWN Registered 573062
HUMID PRESS OF DAYS Registered 597547
I AM TALKING TO THIS FLOWER Registered 8893869
I HATE THIS PART OF TEXAS Registered 8893870
I LIVE IN LA Registered 17316674
I WAS BORN IN A LAUNDROMAT Registered 693210
ICE CREAM EVERYDAY Registered 699310
INTERLUDE Registered 9541081
IT WAS LIKE THAT WHEN WE GOT HERE Registered 17316669
JACK RUBY Registered 756077
JERRY S DAUGHTER Registered 764090
JOE STALIN S CADILLAC Registered 772423
JUNE Registered 780704
LA COSTA PERDIDA Registered 15139906
LIFE IS GRAND Registered 867508
LIGHT FROM A CAKE Registered 869948
LONG PLASTIC HALLWAY Registered 9541075
LOS TIGRES TRAFICANTES Registered 8893871
LOVE FOR ALL TIME Registered 15139908
LOVE IS A WEED Registered 8893872
LULU LAND Registered 936839
MIGHT MAKES RIGHT Registered 7153328
MILITIA SONG Registered 8893875
MODERN ART Registered 1806956
MY INVISIBLE CAR Registered 15139909
MY PATH BELATED Registered 1041025
NEVER GO BACK Registered 1055511
NEW ROMAN TIMES Registered 7155760
NO FLIES ON US Registered 1070347
NO KRUGERRANDS FOR DAVID Registered 1071399
NO MORE BULLSHIT Registered 1073365
NORTHERN CALIFORNIA GIRLS Registered 15139904
O DEATH Registered 8893877
OM EYE SWEET ISTHMUS WE ARE ONE Registered 8893878
ONE OF THESE DAYS Registered 1124541
OPENING THEME Registered 1132836
OUT LIKE A LION Registered 17316675
PEACE AND LOVE TOO MUCH GINSENG Registered 1159920
PEACHES IN THE SUMMERTIME Registered 15431618
PERFECT ENIGMA MACHINE Registered 5787291
POPE FESTIVAL Registered 9541078
PRELUDE Registered 7153324
PROCESSIONAL Registered 1205874
R AND R UZBEKISTAN Registered 7155759
S P 37597 MEDLEY Registered 8893879
SAD LOVER S WALTZ Registered 1280919
SEVEN LANGUAGES Registered 1314822
SHE DIVINES WATER Registered 1321688
SHUT US DOWN Registered 1336113
SOMEDAY OUR LOVE WILL SELL US OUT Registered 15139903
SOMETIMES Registered 1379603
STAIRWAY TO HEAVAN Registered 1400431
STAYING AT HOME WITH THE GIRLS IN THE MORNING Registered 9541077
STILL WISHING TO COURSE Registered 1411720
SUGARTOWN Registered 17316673
SUMMER DAYS Registered 15139905
SURPRISE TRUCK Registered 1435021
SWEETHEARTS Registered 1442392
TANIA Registered 1457264
THAT GUM YOU LIKE IS BACK IN STYLE Registered 7153327
TOM FLOWERS 1500 VALVES Registered 5761768
TOO HIGH FOR THE LOVE IN Registered 15139901
TURQUOISE JEWELRY Registered 1558764
TURTLEHEAD Registered 1558844
ULTIMATE SOLUTION Registered 17316668
UNE FOIS Registered 1572410
WAKA Registered 1597688
WE EAT YOUR CHILDREN Registered 1806955
WE LOVE YOU Registered 1617075
WE RE A BAD TRIP Registered 9541082
WE RE ALL WASTED AND WE RE WASTING ALL YOUR TIME Registered 5787293
WE WORKERS DO NOT UNDERSTAND MODERN ART Registered 1806956
WHEN I WIN THE LOTTERY Registered 1645436
WHITE FLUFFY CLOUDS Registered 7153326
YOU GOT TO ROLL Registered 15139902
ZZ TOP GOES TO EGYPT Registered 1748440

Bicycle Spaniard Music

(Includes duplicates as alternate titles)

AIN T GONNA SUCK ITSELF Registered 7877453
AIN T THAT STRANGE Registered 5962349
ALMOND GROVE Registered 18557419
ALMOND GROVES Registered 18557419
BABY ALL THOSE GIRLS MEANT NOTHING TO ME Registered 8634302
BE MY LOVE Registered 5152653
BEAUTIFUL Registered 18557408
BEEN AROUND THE WORLD Registered 4698263
BETTER TIMES ARE COMING OUR WAY Registered 8634311
BIG LIFE Registered 8634314
BRIDES OF NEPTUNE Registered 5971347
BRING US DOWN Registered 5971317
CA COUNTRY BOY Registered 18891463
CALIFORNIA COUNTRY BOY Registered 18891463
CINDERELLA Registered 4848068
COME ON LITTLE DARLING GIMME ONE MORE CHANCE Registered 8634301
DARLING WE RE OUT OF TIME Registered 8634313
DEEP OBLIVION Registered 8634303
DISINTEGRATING Registered 4848087
EL CERRITO Registered 18557414
EL COMANDANTE Registered 18557413
EVERYBODY GETS ONE FOR FREE Registered 8634312
EVERYBODY GETS ONE FREE Registered 8634312
EYES OF MARY Registered 5331732
FLUFFY LUCY Registered 8634300
FOREVER Registered 5971338
GENTLEMAN S BLUES Registered 4848075
GET ON DOWN THE ROAD Registered 18557421
GET UP AND GO HEAD ON DOWN THE ROAD Registered 18557421
GIMME ONE MORE CHANCE Registered 8634301
GOOD LIFE Registered 4738002
GUARDED BY MONKEYS Registered 5971351
HALLELUJAH Registered 4803988
HAND ME MY INHALER Registered 10355099
HARVEST QUEEN Registered 7811842
HEAVEN KNOWS I M LONELY NOW Registered 5331731
HEY BRETT Registered 10355102
HEY BRETT YOU KNOW WHAT TIME IT IS Registered 10355102
HOLLYWOOD CEMETARY Registered 4848083
I COULD BE WRONG I COULD BE RIGHT Registered 10355100
I M GOING BACK HOME TO THE ALMOND GROVES Registered 18557419
I M SO GLAD SHE AIN T NEVER COMING BACK Registered 8634306
I M SORRY BABY Registered 18557409
I NEED BETTER FRIENDS Registered 8634308
I SOLD THE ARABS THE MOON Registered 12171605
I WANT OUT OF THE CIRCUS Registered 4803989
IT AIN T GONNA SUCK ITSELF Registered 7877453
IT S NOT MY PROBLEM Registered 18557423
JAMES RIVER Registered 4803990
JUST TO BE WITH YOU Registered 18557426
KING OF BAKERSFIELD Registered 18557410
LIFE IN THE BIG CITY Registered 18557416
LULLABYE Registered 4803991
MAGGIE Registered 8634299
MARCH OF THE BILLIONAIRES Registered 18557412
MARIGOLD Registered 12171606
MERRY CHRISTMAS EMILY Registered 5971252
MINOTAUR Registered 8634309
MS SANTA CRUZ COUNTY Registered 5971259
MY LIFE IS TOTALLY BORING Registered 4848071
NIGHT FALLS Registered 8634310
NIGHT FALLS AGAIN Registered 8634310
ONE FINE DAY Registered 5971262
PALACE GUARDS Registered 12171602
PLEASE DON T GIVE IT AWAY Registered 8634315
PRETTY ON THE OUTSIDE Registered 10355104
RAISE EM UP ON HONEY Registered 12171601
REACTION Registered 18557423
RIVERSIDE Registered 8634305
SEVEN DAYS Registered 4848085
SHAMELESS Registered 5971266
SHINE Registered 5971269
SHINE A LIGHT Registered 10355098
SHOW ME HOW THIS THING WORKS Registered 10355096
SIDI IFNI Registered 8634307
SOMEDAY YOU LL BE MINE Registered 12165536
STAR Registered 4848079
SUBMARINE Registered 12171608
SUNRISE Registered 10355103
SUNRISE IN THE LAND OF MILK AND HONEY Registered 10355103
SWEET MAGDELENA OF MY MISFORTUNE Registered 5971310
TIME MACINE Registered 10355101
TONIGHT I CROSS THE BORDER Registered 18557420
TORCHES AND PITCHFORKS Registered 18557411
TURN ON TUNE IN DROP OUT WITH ME Registered 10355097
WAITED MY WHOLE LIFE Registered 18557426
WAITING FOR YOU GIRL Registered 4848080
WE ALL SHINE A LIGHT Registered 10355098
WHAT YOU RE MISSING Registered 5971394
WHEN YOU COME DOWN Registered 18557422
WHERE HAVE THOSE DAYS GONE Registered 8634304
WILD ONE Registered 4848070
WORLD IS MINE Registered 4848076
YALLA YALLA LET S GO Registered 10355095
YOU ARE STILL BEAUTIFUL Registered 18557408
YOU GOT YOURSELF INTO THIS Registered 18557415
YOU KNOW WHAT TIME IT IS Registered 10355102

 

 

 Google and EFF amicus brief betting pool is being organized at the Trichordist offices in California. 

Yesterday major labels filed suit against the unlicensed music downloading service Aurous,  The company has been called “Popcorn Time for Music” because of the ease with which it allows users to download music from bittorent tracking sites.  More accurately Auros is simply an unlicensed Spotify. That is it provides exactly the same service that Spotify provides but it doesn’t bother getting licenses or paying artists.

Now in the past when we see cases like this, usually within a matter of weeks we see Google and EFF file amicus curiae  briefs on behalf of the defendants.   In fact this blog has rarely seen a piracy case in which Google and EFF haven’t weighed in on behalf of the infringing site.  Now we always expect this serial enabling of artist exploitation sites from the EFF.  Because let’s face it, the EFF has become an anti-civil rights organization.  The EFF seems to always find commercial websites have “rights” that supersede those of the individuals they abuse. No matter how heinous these sites. That’s why the EFF  stoops to defending REVENGE PORN websites (a form of sexual assault) as a form of “speech.” What’s next EFF, child porn sites?

But Google should be cool right?   I mean they are our partners right?  They have Google Play and YouTube. They love musicians, film makers and other creators.   We’re all on the same side right guys?

Nope. Nope. Nope. Nope. etc etc etc

Any questions? What’s that I can’t hear you entertainment industry?   Oh I understand, it’s kind of hard to speak clearly with that Google brand knife in your back. How did that get there?

++++++++++++++++++++++++++++++

So the count down begins.  How many days till Google and EFF file their amicus briefs in this case?   Since October has 31 days the pool will work using modulo 31 math.  For civilians that means we will roll over to 1 at day 32.   The pot is currently up to $24 dollars! You know about the size the typical check from a legal streaming service.

Finally, why is it that none of the streaming services like Spotify or Pandora file amicus briefs on behalf of rights holders and artists?  I mean Aurous competes directly with both of these services.  It seems like they have as much at stake.  And we are friends right?  Perhaps it’s because they aren’t really our partners at all?   That indeed they don’t give a shit about artists and rights holders?   I’d love to see one of the labels ask their partners Daniel Ek or Tim Westergren this question.

“Complaining is not a strategy?” The MMF has found its inner robber baron.  By this logic those who protested against child labour or unfair pay in the last great industrial upheaval were “complaining” and lacked “a strategy.”  The cynical implication is that the blame lies with the victim.  The weak and the poor have failed to innovate or legislate their way out of this.  Instead they just “complain.”     Sad, the once great MMF/FAC is now simply a mouthpiece for the robber barons of  the 21st century.  Much the way the Hearst family owned news papers apparently the streaming industry funds these forums now (see: https://thetrichordist.com/2015/06/30/breaking-source-claims-spotify-google-fund-independent-music-managers-forum-and-featured-artist-coalition/)

Here are some of the “balanced” and “informative” comments from panelists at the NY forum:

“Spotify is the best product ever.”
“It’s so frustrating that artists don’t understand [how great Spotify is].”
“It’d be a shame if sensationalized media stories about low royalty payments stopped people from subscribing to streaming services like Spotify, which is so awesome.”

In NY at least Tommy Silverman was honest about what is really going on. Our sources reports Silverman said “The question is will artists be willing to take a short term loss for long term gain.”  That’s right.  Artists are currently subsidizing these services with below market rates on their songs and recordings.  The problem is there is no reward for our risk taken.  There is nothing for us “in the long term.”  As we have demonstrated streaming rates are actually trending lower. And unlike many managers we didn’t end up with equity in Spotify.  This is one of the reasons we can’t wait for the Spotify IPO.  We believe that the disclosure of ownership shares may cause some legal trouble for certain individuals.

Here is Blake Morgan’s report on the goings on at the NY meetings.   BTW you still have time to show up at the Austin meeting(hint hint).

 

Rates are “all in” at source.  Calculations based on royalty statements from a catalogue of 1500 titles 2014.  Exception is Pandora which was calculated from 2nd quarter 2015 statements (higher than 2014).  

In the fight for fair pay artists are not at war with the Internet or really even the streaming services, we are at war with the online advertising industry.   As we have demonstrated time and time again, subscription (paid) music streaming services pay at least 7 times the rate that the free services pay.   When you see artists (like myself) post absurdly low royalty payments it’s usually from one of the services that is predominately ad supported. Above is a chart that illustrates this nicely.

So for artists the solution seems easy:  get rid of ad-supported free tiers.  The problem is that in order to do away with these ad-supported tiers we have to fight not just the music streaming services but we have to fight the real power behind the throne:  the online advertising industry which is dominated by Google. Indeed all three ad supported services above rely on Google to serve their ads. 

So basically we have to fight Google?

Good luck with that, right?   This is a company with so much lobbying power in Washington D.C. they can make an FTC investigation go away and  turn a federal criminal drug charge (aiding “Canadian” pharmacies) into a civil penalty.   Artists don’t have the money to fight Google largely cause Google has decimated our income streams over the years by allowing “users” to give our stuff away for free on YouTube and feeding massively infringing sites with ad dollars.

+++++++++++++++++++++++++++++++

So what would happen if most consumers decided to block ads?

First of all it’s not a question of if consumers will block ads but when.  Consumers have grown increasingly suspicious of the entire ad tech industry.  It’s not just the annoying banners, pop-ups and pre-rolls that slow down our browsing experience, consumers have finally become aware of the industrial scale data mining and spying operations used by the online advertising industry. These companies are tracking virtually every web page you visit and often know your physical location to within a few meters.  (Don’t believe it? Don’t take it from me, ask your tech savvy friends who use browser plug-ins like Ghostery.)

While it’s relatively easy now to block pop-ups and banner ads it’s more difficult to block ads on Spotify and YouTube.   But it is doable (if a little clunky)  and it is only a matter of time before ad blocking technology catches up with the streaming services. Apple has announced its intention to allow ad blocking in the newest IOS.  It’s unclear if this will eventually block ads in Spotify and YouTube but most users would welcome it.

So what happens to artists if this happens?  If it becomes suddenly possible to block all ads?

In the short term artists would lose revenue.   But it is not as bad as you think.  If ALL the free streams on Spotify went away IMMEDIATELY artists would see their Spotify payments drop only 16%.  See here: USA Spotify Streaming Rates Reveal 58% of Streams Are Free, Pays Only 16% Of Revenue.   But lets not get too distracted by that because the real crime is that YouTube pays so little it’s a joke.

YouTube is the biggest digital platform of all. Yet as a songwriter I received $12.87 from YouTube last quarter.  By my calculations YouTube paid all rights holders (label/publisher/songwriter) less than $340 for access to my catalogue.  YouTube revenue is not gonna save artists and or the industry at large.   I will barely miss it.  And YouTube is clearly inhibiting the growth of subscription services that pay higher revenues.

++++++++++++++++++++++++++++++++++++

What happens in the long term?

This is where it gets interesting and also very difficult to forecast. Admittedly I’m not an expert (and my terminology may not be perfect)  but in the long term ad-blocking forces all ad supported services to move towards other sources of revenue or cross subsidies.  Subscription? Bundle with another service or services?  Become a loss leading “add on” to a company selling other goods? Or much more lucrative advertising schemes like embedded ads or sponsorship.

All of these are more likely than not to boost revenue to artists on a per stream basis. We already know subscription boosts revenue per stream; Cable (I know, not a great example) has figured out how to get people who don’t watch sports to pay $6 a month for ESPN; and iTunes was clearly a loss leader built to sell hardware. Regardless the point is there are very common cross subsidy schemes already out there that could increase revenue to artists.

The downside is that there is a very real potential we end up with something like an Apple/Amazon/Altice  (don’t laugh) streaming tri-opoly if streaming services aren’t standalone. (Why no Google? Ad-blocking may put Google into a revenue crisis with unpredictable consequences.) But I would argue that consumers will adopt ad-blocking anyway, with or without artists encouraging it.  IMHO it is better for this to happen sooner than later because the longer these services limp along with no hope of profitability, the greater the damage to perceived value of music.

+++++++++++++++++++++++++++++++++++++++++++++++

The Difference Between Free and Ad-supported

I want to make an important distinction here.  Not all free and ad-supported services are the same.  In reality there is a continuum but I’m gonna simplify into three groups from good to bad:

1. Services that offer free trials which convert to paid subscriptions after 30-90 days.
2. Services that offer free ad supported tiers but provide effective incentives for users to upgrade to subscription tiers.
3. Services that offer free tiers with no intention or incentives to upgrade to subscription tiers or lack subscription tiers entirely or fake subscription tiers that never materialize. (like YouTube’s Music Key?)

We can argue all day over which services go into category 2.  Lets skip that for now or reserve it for a future post.  The question is whether ad-blocking eliminates category 2 and whether the users then move into subscription tiers or down into category 3?

Reasonable people can disagree, but I think that a degradation or elimination of ad revenue for category 2 is a net positive for artists as it forces these services to hone their incentives and move users from free tier to subscription tiers faster.  It’s also possible that if this is not managed correctly users will move backwards to category 3.  Admittedly there are risks.

+++++++++++++++++++++++++++++++++++++++

What about YouTube/Google?

If consumers get really serious about blocking ads and refusing to be tracked?  There is no Google/YouTube.  Not in its current incarnation, not at its current size.  Google must invade your privacy for its cash machine to continue working.

Google could work around ad-blocking and anti-tracking software, but my bet (60%/40%) is they are not nimble enough to do so without a serious hit to their revenue.

Despite all the claims to the contrary Google is a one trick pony: advertising. More than 90% of Google’s revenue comes from advertising.  And a lot of that is the nastiest form of advertising, the tracking spying kind.  I believe Google is what Nassim Taleb would term “fragile.” An institution too brittle to adjust to unpredictable external shock.  A shock like the “viral” adoption of technology that allows consumers to NOT be tracked or subjected to their obnoxious advertising. The ad supported web is not and never was a given.  The internet doesn’t care about Google’s stock price,  currently stable business model or how many lobbyists they have in DC.  Just ask the music business.

The wildcard here is that an unintended consequences of net-neutrality.  As written net-neutrality  gives Google – oops, I mean the FCC a backdoor into consumers smartphones, tablets and PCs.  Absurd as it sounds the FCC could declare ad blocking in violation of net-neutrality, because it discriminates against certain packets and sources of traffic. Hopefully I’m wrong on this.

+++++++++++++++++++++++++++++++++++++++

What about piracy?

Ha.  Piracy is completely supported by ad revenue.  Just ask Kim Dotcom. And Google has always been there to lend a hand,  with obfuscating ad exchanges, astroturf organizations, bloggers with financial ties to Google, shared law firms and  amicus briefs. Also does anyone else find it odd that that Dotcom was arrested only  after he proposed a plan to hijack the entire online ad network (link above)?

I think it is fair to say that Google has served as the deep pockets to aid many massively infringing businesses in their legal battles against rights holders.  This has the benefit of prolonging  a market failure that keeps supplier prices low for its “other” business YouTube .

+++++++++++++++++++++++++++++++++++++++

What happens to the Internet?

Nothing.

The internet and the online advertising industry are not the same thing, although there are companies that spend a lot of money trying to make you think they are the same thing. To counter this I ask you to  read this imaginary conversation between The Verge’s Nillay Patel and The Berkman Center’s Doc Searls (author of the conversation), starting with this paragraph:

(NP) Unfortunately, the ads pay for all that content…

(DS) A lot, but not all. There are plenty of publishers and broadcasters that get along fine without advertising. HBO, Netflix, Consumer Reports and this blog, for example.

(NP) …an uneasy compromise between the real cost of media production and the prices consumers are willing to pay…

(DS) Stop. The commercial Internet is just 20 years old (dating from the end of NSFNet, the last holdout against commercial traffic within the Internet). We’ve hardly begun to experiment with all the different ways things can be funded, and ways people can signal their willingness to pay…

Actually read all five of his pieces on the online advertising industry.

http://blogs.law.harvard.edu/doc/2015/09/18/debugging-adtech-assumptions/

++++++++++++++++++++++++++++++++++++++++

To Block or Not to Block?

So should artists encourage their fans to block ads?  It’s not certain that things will get better for artists in the short term or long term.  On the other hand the professional working class musician is about to be snuffed out of existence.  Can it really get that much worse?

An options trader would see this as a great opportunity:  our losses are small and capped but the upside is potentially unlimited.

If you haven’t noticed I’m a bit of a bomb thrower. I enjoy provoking what I see as necessary conversations. I also enjoy figuring out how to break things.   Encouraging fans to ad-block is a bit of both.  It provokes a necessary conversation about the exploitative logic of the ad supported web and breaks stuff at the same time. Naturally I’m drawn to it.

But what is not so easy to see is that there is a careful calculation here.   The idea is to disrupt the disruptors. Musicians, performers, producers and songwriters have this in our DNA.  Each successive musical style or innovation disrupts the last one which was not so long ago the disruptor. Usually after the disruptor has grown soft, complacent or even arrogant.  When the disruptor begins to proclaim they are here to stay or changing the world?  In the music business everyone knows what happens next. Remember just ten short years ago we were proclaiming MySpace the future of the music business.

As a musician I’ve prospered (to varying degrees) through five dominant format shifts: Vinyl, Cassettes, CDs, MP3s and Streaming. The last two were the most challenging.  Still you think musicians will be sweating another transition as we go from ad-supported streaming to a fairer model?  No. By paying so little the ad-supported streaming services have made themselves economically irrelevant to most of us.  The way most musicians look at it: Who cares if they fail?  They need us more than we need them.

You know what to do right?