Must See Documentary: The Way the Music Died: Why You Should #DitchSpotify

Big thanks to Jon at Camden Live for posting about this really important documentary about the deep, down and dirty effects of Spotify on music, musicians and the creative process.

It’s always been a hard road for musicians to make money from their songs. Nonetheless, selling tons of singles and albums was at least a target and something bands could dream about.  Of course, there were many ways the labels could work the sales figures to get their shares out first, and only then the bands might see something. Despite the conflict between the often industrial-strength labels and the upcoming artists, there was at least hope that money was flowing back to the content creators.  Now though in the age of streaming music, the connection between making music and making a living is profoundly broken.

This schism is the subject matter for Lightbringer Production’s documentary film “The Way The Music Died” featuring insights from musicians and industry pros, including Mishkin Fitzgerald from Birdeatsbaby.  The film probes the spirit of artists determined to keep writing songs in the face of the meager payouts from the giant and ever-growing music stream service Spotify. Find out why this is ripping-out the heart and soul of new music.

@artistrightsnow Op-Ed: Spotify’s New ‘Discovery Mode’ Is Just Payola — Artist Rights Watch

Getting discovered in the music business has never been easy. Before the pandemic, artists could at least rely on the industry’s historic mainstay to break through — playing as many gigs as possible and hoping to build a following. But with that path closed for now, artists and their label partners are increasingly dependent on Spotify, the undisputed king of music streaming, and its black box algorithms.

That’s why Spotify’s cynical decision to use this moment to launch a new pay-for-play scheme pressuring vulnerable artists and smaller labels to accept lower royalties in exchange for a boost on the company’s algorithms is so exploitative and unfair. Artists must unite to condemn this thinly disguised royalty cut, which apparently has just been released in “beta” mode and is soon expected to enter the market in full force. 

Read the post on Rolling Stone

No More Poormouthing: Daniel Ek’s $310,000,000 Edifice Complex is Real, and Spotify’s PR Effluvia is Overflowing — Artist Rights Watch

By Chris Castle

As we reported February 9, Spotify is using hundreds of millions of its supernormal stock market riches to acquire naming rights to the Barcelona soccer team. The latest manifestation of Daniel Ek’s monopolist edifice complex was confirmed by Music Business World Wide and Variety among others, as well as Spotify itself. Barcelona’s iconic Camp Nou stadium (largest football stadium in Europe) will now be known as Spotify Camp Nou.

I assume that when Netflix finds out about this, there will be an epilogue to their Edward Bernays-style epic corporate biopic that will ignore the Rogan catastrophe but will include the Barcelona deal with a tight shot on the Spotify Camp Nou and probably a t-shirt vendor.

Let us take one clear message from this navel-gazing naming-rights deal to assuage Daniel Ek’s psyche after a losing bid to acquire the Arsenal football club and join the International League of Oligarchs. That message is that we don’t ever want to hear again about how Spotify “can’t make a profit” or “pays out too much money for music.” Daniel Ek–who controls the company through his super voting stock–has been running that diversion play for way too long and it’s just as much BS spewing from his mouth as it is any of the Silicon Valley oligarchs who whinge about how poor they are when they appear in court. 

Let us also agree that anyone who takes a royalty deal from any DSP that does not include an allocation for stock valuation is quite simply a rube who must be laughed at and mocked in the Spotify board room. This stock value allocation doesn’t require a grant of shares, but can include a dollar contribution that tracks share value and should be paid directly to both featured artists, session musicians and vocalists through their collective rights organizations on a nonrecoupment basis.

But don’t let me describe the bullshit, read it yourself directly from Spotify’s “Chief Freemium Business Officer” whatever the hell that means:

Statement of Alex Norström, Chief Freemium Business Officer, Spotify

“We could not be more thrilled to be partnering with FC Barcelona to bring the worlds of Music and Football together. From July, our collaboration will offer a global stage to Artists, Players and Fans at the newly-branded Spotify Camp Nou. We have always used our marketing investment to amplify Artists and this partnership will take this approach to a new scale. We’re excited to create new opportunities to connect with FC Barcelona’s worldwide fanbase.

Spotify’s mission is to unlock the potential of human creativity, supporting artists to make a living off their art and connecting with fans. We believe this partnership creates many opportunities to deliver on this mission in unique, imaginative, and impactful ways.”

Yes, that’s right. Daniel Ek’s edifice complex is all about unlocking the potential of human creativity because it’s all for the artists, don’t you know.

These people continue to embarrass themselves with their insufferable 1999er BS without realizing that any artist whose name shows up on a single Barcelona jersey will extract a considerable additional payment that the artist will keep and the labels won’t save Spotify on that one. Even if they do, there are only certain artists who don’t mind their names appearing on Barcelona jerseys–for a price. The overwhelming majority will not only not want it but are insulted that the “Chief Freemium Business Officer” is so ignorant of their name and likeness rights that he would even remotely float the idea that Spotify had the right to do anything like that level of grift.

If Mr. Freemium is really serious about “supporting artists to make a living off their art”, forego the edifice stroke and just pay that money directly to featured artists, session folk, and songwriters that have made him rich. Until then, he should just say you’re damn right we used the stockholders money to soothe Daniel Ek’s wounded ego because he desperately wants to be accepted by the Party of Davos and the League of Extraordinary Dweebs. Because we’ve already established what kind of people they are, it’s just a question of negotiating the price.

But let’s face it–what the monopolist really wants is a branded Monopoly game.

Daniel Ek’s Edifice Complex: Millions for tribute, but not one red cent for royalties as Spotify buys naming rights to biggest football stadium in Europe — Artist Rights Watch

By Chris Castle

If screwups were Easter eggs, Daniel Ek would be the Easter bunny. Right in the middle of Spotify’s crashing stock price, billion-dollar stock buy backs, shenanigans at the Copyright Royalty Board (which grows more chaotic by the day), the Joe Rogan controversy, and an investigation by the UK competition authorities after an investigation by the Digital Culture Media and Sport Committee of the UK House of Commons, here’s another Easter egg that Little Danny missed.

According to Marca, the sport site based in Spain, Ek is soothing his (so far) failed bid to buy the UK football club Arsenal by acquiring the naming rights to Barcelona FC’s super-stadium, Camp Nou, the largest football stadium in Europe.  According to Marca:

Sponsorship seems to be the way in which Laporta hopes to get the Blaugrana out of the red and into the black.

An agreement with music streaming platform Spotify, which is expected to be confirmed imminently, will see the club receive 225 million euros.

In turn, Spotify will sponsor the men and women’s shirts as well as their training wear. Furthermore, Spotify will have the rights to the stadium for the next three seasons- which has received mixed reviews from fans of the club.

Barcelona expect annual income of 20 million euros from Spotify to sponsor the Camp Nou, which is estimated to be more than Manchester City‘s deal with Etihad – who sponsor their stadium for 15 million euros per season.

That’s right–not one red cent for artists (or songwriters) but millions for tribute. And how did this deal come about do you think? Well, realize that Barcelona is also shopping for a rather large loan to renovate the Camp Nou stadium and they turned to…Goldman Sachs, which happens to be one of Spotify’s investment bankers. So which came first? 

Does Goldman think there’s anything unethical about a company that screws creators all the livelong day but spends hundreds of millions on naming a soccer stadium after itself? (OK, I got that out with a straight face, but you can laugh now.) Evidently not, because in the catechism of Goldman, you stop at the fees novena.

And speaking of fees, what is the source of funds for Daniel Ek’s latest self-aggrandizement or whatever you call it? Perhaps a loan from Goldman before interest rates spike this year if the Federal Reserve really does say goodbye to the easy money era that has bubbled up assets around the world?

Frozen Mechanicals Crisis: 2nd Comment of @helienne @davidclowery @theblakemorgan Opposing Conflict of Interest in Frozen Mechanicals–‘Let the future have a vote’

SECOND REOPENING PERIOD COMMENTS OF HELIENNE LINDVALL, DAVID LOWERY AND BLAKE MORGAN 

            Helienne Lindvall, David Lowery and Blake Morgan (collectively, the “Writers”) thank the Judges for the opportunity and respectfully submit the following comments responding to the Copyright Royalty Judges’ notice (“Second Notice”) soliciting comments on additional materials (“Reply”) received by the Judges[1] from the National Music Publishers Association, Nashville Songwriters Association International, Sony Music Entertainment, UMG Recordings, Inc. and Warner Music Group Corp. (collectively, the “Majors”)[2] regarding the so-called [frozen] “Subpart B” statutory rates and terms[3] relating to the making and distribution of physical or digital phonorecords of nondramatic musical works in the docket referenced above (“Proceeding”). 

The Writers previously submitted comments[4] (“Prior Comment”) responding to the Judges’ notice[5] (“First Notice”) soliciting comments on the Major’s proposed purported settlement (the “Proposed Settlement”)[6] of the Subpart B rates.  The Writers along with attorney Gwendolyn Seale[7] attempted to submit additional comments in response to the Majors’ filing but were not able to timely file that response.[8]  The Writers appreciate the Judges’ decision to reopen the comment period in order to afford the public, and those that would be bound by the rates and terms set by the Proposed Settlement,[9] an opportunity to comment on those additional materials filed by the Majors and to further participate in the rulemaking.[10]

I.  SUMMARY
            As a general comment on the record to date in Phonorecords IV, the Writers are mystified by the histrionics that have become associated with this Proceeding both on the record and in the press. A voluntary negotiation is just a deal, often made by people who are paid to always be closing. The Writers believe that Congress intended that voluntary negotiation produce a fair result on a reasonable timetable.  

 While not directly at issue in the reopened comment period, what is clearly the case is that the settlement of the Subpart B rates has unnecessarily become a major gating item for the streaming side of this Proceeding, geese and ganders being what they are.  Despite the extensive voluntary negotiation period for the Subpart B rates by the Majors, the Judges—and, frankly, songwriters around the world–are presented instead with a cornucopia of chaos across the board; the cherry on top is the frozen mechanicals crisis.  However, in this season of hope the Writers are confident that the Judges will lead us all out of this daunting situation.

The Writers are not interested in the personalities, the arm-waving or the finger-pointing.  They are interested in the results, particularly because neither they nor anyone they authorized had input into the negotiation that produced either the Proposed Settlement or the impasse.

There is at least one easy way to fix this and recognize the intrinsic value of songs:  Raise the statutory rate proposal for Subpart B configurations in at least some relation to the streaming rate increase.  A song is no less valuable because of the medium in which it is exploited.[11] 

As the Writers will argue, just like the voluntary agreement on Subpart B that led to this impasse was reached by the Majors, those same parties can go back to the drawing board to reach an appropriate conclusion with a higher Subpart B rate.  

Neither the public nor the songwriters are well served (and frankly neither are the Judges) by thrashing about and waiving arms. This may serve well the people who are paid by the hour but it hasn’t served people who are paid by the song.  At all.  “Victory” without winning may pass for success in Washington, but it does not in the writer room or at a songwriter’s kitchen table.

            The Proposed Settlement is a crystallization of everything that is wrong with the licensing and payment practices that have arisen under the compulsory license regime where no is yes, more is less and the Kool-Aid whispers “Drink Me.”  

While the Writers will focus in this comment on the frozen mechanicals issue that has become emblematic of the current crisis, it must be said that the decade-plus MOU [black box] agreements are a backward looking and inequitable insider arrangement that permits a mindset of sloppiness and a “kick the can down the road” mentality that debilitates the entire music publishing business.[12]  It’s no accident that the Mechanical Licensing Collective—run by largely the same cast of characters under a jaw-dropping Congressional governance mandate—has been sitting on $424,000,000 of other peoples’ money for nine months during a pandemic with no visible compliance with another Congressional mandate of paying songwriters correctly in Title I of the Music Modernization Act.[13]  

            The MLC and the sequence of MOUs are both descended from the same ancestors a generation ago.  Each have essentially the same business model and each are somehow inexplicably viewed as a “win” for the songwriters.  The irony of splicing the genetic code of the ancien régime MOU [black box insider settlements] to the future is not lost on anyone.  If the failure to match money and songs in the MOU process is still a problem after fifteen years as well as the much-trumpeted Title I of the Music Modernization Act, it’s not the horse’s fault.  It’s the rider’s.

            It would be a real pity for the CRB to perpetuate this unfairness by adopting the Proposed Settlement.  With respect, it is bad law, bad policy, and a failure to even try to bend the arc of the moral universe.  Conversely, rejecting the Proposed Settlement would provide the kind of steely oversight tragically lacking in the current regime.  Please let the future have a vote, just once.

            The Writers object to the Proposed Settlement for the following reasons and respectfully suggest constructive alternatives.  The gravamen of our objection is that (1) the Subpart B rates have already been frozen since 2006 and extending the freeze another five years is unjust; (2) no evidence has been publicly produced in the Proceeding that justifies or even explains extending the proposed freeze aside from the connection to the memorandum of understanding in the MOU4 late fee waiver (“MOU”), a document that the Majors only recently disclosed in their Reply; (3) very large numbers of songwriters and copyright owners of various domiciles around the world and national origins are unlikely to even know this Proceeding is happening and there still is no evidence that the unrepresented have appointed any of the participants to act on their behalf or were asked to consent to the purported settlement before the fact even if they were members of these organizations aside from the respective board of directors; (4) physical sales are still a vital part of songwriter revenue (which the Writers documented in the Prior Comment[14]); and (5) there are many just alternatives available to the Judges without applying an unjust settlement to the world’s songwriters who are strangers to the Proposed Settlement and in particular the MOU component (as the MOU will likely require membership in the NMPA to benefit consistent with prior MOUs).

[Read the full-length original filing here.]


[1] 86 FR 58626.

            [2] NMPA, NSAI, Sony Music Entertainment, UMG Recordings, Inc. and Warner Music Group Comments in Further Support of the Settlement of Statutory Royalty Rates and Terms for Subpart B Configurations, Determination of Royalty Rates and Terms for Making and Distributing Phonorecords (Phonorecords IV), Copyright Royalty Board (Aug. 10, 2021).

            [3] 37 C.F.R. §385.11(a).

            [4] Comments of Helienne Lindvall, David Lowery and Blake Morgan, Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords IV) (July 26, 2021) available at https://app.crb.gov/document/download/25533.

[5] 86 FR 33601.

            [6] Motion To Adopt Settlement of Statutory Royalty Rates and Terms for Subpart B Configurations, Docket No. 21-CRB-0001-PR (2023-2027).

            [7]  Ms. Seale does not otherwise join in this comment.  We understand she is filing a separate comment regarding the additional materials.

            [8] The Writers’ reply was posted on The Trichordist website available at https://thetrichordist.com/2021/08/16/frozenmechanicals-crisis-unfiled-supplemental-comments-of-helienne-lindvall-davidclowery-theblakemorgan-and-sealeinthedeal/.  Parts of that unfiled comment are included in this comment.

[9] See 17 USC 801(b)(7)(a)(i).

                  [10]  As with the Writers prior submission in response to the First Notice, the Writers focus in this comment almost entirely on the Subpart B rates applicable to physical carriers under 37 C.F.R. §385.11(a).  

            [11] The Judges no doubt will be told many stories about how Subpart B configurations are not meaningful sales compared to streaming so rates deserve to be frozen.  This is a novel copyright argument without a statutory basis.  The theory is also not based on accurate facts as the Writers discuss extensively in the Prior Comment at paragraph 5 and will not repeat here.

            [12] There is a growing backlash to decades of delaying definitive action on song metadata and songwriter payments such as Credits Due campaign of the Ivors Academy and Abba’s Björn Ulvaeus.  See generally Chris Cooke, PPL Backs Björn Ulvaeus’s Credits Due Campaign, Complete Music Update (Oct. 4, 2021) available at https://completemusicupdate.com/article/ppl-backs-bjorn-ulvaeuss-credits-due-campaign/

            [13] See, e.g., H. Rep. 115-651 (115th Cong. 2nd Sess. April 25, 2018) at 5; S. Rep. 115-339 (115th Cong. 2nd Sess. Sept. 17, 2018) at 5 (“The Committee welcomes the creation of a new musical works database that is mandated by the legislation….Music metadata has more often been seen as a competitive advantage for the party that controls the database, rather than as a resource for building an industry on.” (emphasis added)).

            [14] See Prior Comment at 16.

Dylan Smith: Electronic Artist Skee Mask Removes Music From Spotify, Citing Lack of Respect for Creators and Investments In Defense Technology — Artist Rights Watch

Electronic music producer and artist Skee Mask (full name Bryan Müller) has officially removed “all” his tracks from Spotify over the platform’s perceived lack of respect for creators, in addition to CEO Daniel Ek’s multimillion-dollar investment in AI-powered defense company Helsing. he Germany-based “Rev8617” artist announced his voluntary Spotify exit on social media, and the much-publicized move follows Skee Mask’s May of 2021 decision to release Pool physically and digitally sans a streaming option.

“it’s done, all of my sh-t is gone from Spotify,” Skee Mask said of his music’s just-finalized removal from the Stockholm-headquartered service. “i have nothing against streaming in general, it’s one of many good ways to make music even more accessible!….

“my music will be available there again as soon as this company starts (somehow) becoming honest & respectful towards music makers. if you really don’t have the money to listen to my music in any other way, feel free to digitally steal it anywhere, BUT don’t give you’re [sic] last penny to such a wealthy business that obviously prefers the development of warfare instead of actual progression in the music business. PEACE!” concluded Skee Mask.

Regarding the “100 MILLION €,” “development of warfare,” and “PEACE” components of the statement from Skee Mask, Daniel Ek’s Prima Materia in November provided €100 million (about $113 million at the present exchange rate) in funding to Helsing, “a new type of security and artificial intelligence company.”

Read the post on Digital Music News