Even More Transparent: 5 Omissions From Berklee College/Rethink Music’s Report

I love transparency.

Last week Berklee College of Music/Rethink-Music/Kobalt Music released this report on transparency and fair pay in the music business.  The report eviscerates the record labels, publishers and performing rights organizations for failing to provide the proper level of  transparency and fair pay to artists.

While we can agree with some aspects of Berklee’s Kobalt Music-funded report, Berklee’s report doesn’t even mention the opaque deals and revenue calculations used by many of the ad supported music services.  Berklee’s report only looks at downstream royalties–what the services pay to rights owners–not upstream royalties, the revenues earned by services that those downstream royalties are based on.

For example, Google will not disclose the revenue that its YouTube subsidiary generated last year but Morgan Stanley estimates that YouTube generated nearly $6 billion. Almost as much as the entire US recorded music business. How much was paid back to YouTube’s “partners”, the songwriters and performers?  Berklee wants us to focus on the royalties that get paid out by rights owners rather than the monies paid to the rights owners.

Songwriters in particular are paid on a formula based on a percentage of advertising revenue.  How do we check if we are getting paid correctly if Google doesn’t publicly reveal those numbers and if songwriters can’t audit those advertising revenues? I’m not saying Google is necessarily underpaying us but how could anyone check?  This is like labels not disclosing manufacturing records.

For this reason we’ve compiled a list of five additional points of transparency that Berklee College of Music/Rethink Music/Kobalt Music should incorporate into their report.

1. Congress should amend the copyright act to include an audit right for all compulsory licenses.  Many find this unbelievable but it’s true. There isn’t one?!!   Digital services often take advantage of these federally mandated licenses but artists usually have no right to audit these services.   This is just patently unfair.

2.  Digital services like Spotify and digital aggregators should clearly distinguish between the revenue generated from the free ad-supported tiers and premium tiers when accounting to artists.  As we have reported the free tier of Spotify pays 1/7th the premium tier.   Transparency on this issue would allow artists to make informed choices as to whom they should license their music and under what terms.

3. Digital services should stop insisting upon non-disclosure agreements with artists. What could possibly be less transparent than an NDA?

4. All ad supported digital streaming services need to come clean on the “acquisition expenses” they deduct from the advertising revenue before they even begin to divide the pie between the service and the rights holders.  Artists should be able to audit these expense since they significantly shrink the pie before artists  get paid.  Are these expenses 20%? 30%?  We’ve heard rumors that on some services  it’s as high as 50%! Who get’s this revenue?

5. Digital services should disclose how much money they have “black boxed.”  Further like SoundExchange they should periodically publish a list of artists for whom they are holding revenue but have been unable to locate.

 

P.S.  Maybe we should demand transparency on funding sources and conflicts of interest on these types of reports.  For instance:

Report Funding by Kobalt Music.  Kobalt Music is a Google Ventures company.  Google owns YouTube.   Maybe that’s why they didn’t mention Youtube.   Google runs the ad networks that serve ads on these services.  Maybe that’s why they didn’t mention the ad acquisition costs.

 

 

 

 

 

Spotify’s Failure to License My Songs in US Illustrates Rethink Music’s Call For Transparency

I spent the weekend reading the Rethink Music report which blasts much of the modern music ecosystem for a lack of transparency.  It’s a good read, if a little wacky at times. Proposed payment by Bitcoin/Blockchains? Are we Russian mobsters?  And curiously the famously opaque and secretive YouTube is spared.  Of course there is a reasonable explanation for that: The report was funded by Kobalt which is partially owned by Google.  Perhaps YouTube is too sensitive a topic.

All joking aside, here’s the report, everyone should read it.

Fair Music: Transparency And Money Flows In The Music Industry,

All in all it’s a decent analysis of where we are in the music business as we transition from ownership to streaming: It’s a mess.  I know this from personal experience with my own catalogue of over 400 recordings and songs.   And the companies that exploit these songs.

For example,  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.

So yes we welcome more transparency in the music business but you can’t have transparency without first getting paid!
Camper Van Beethoven Music Catalogue

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
BROADCASTING LIVE FROM THE MCI WORLDCOM AT AND T Registered 5761769
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
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COME ON DARKNESS Registered 230914
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HEART Registered 545069
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JUNE Registered 780704
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L AGUARDIENTE Registered 5448584
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LOVE IS A WEED Registered 8893872
LULU LAND Registered 936839
MIGHT MAKES RIGHT Registered 7153328
MILITIA SONG Registered 8893875
MODERN ART Registered 1806956
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NO MORE BULLSHIT Registered 1073365
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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
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PIN CUSHION Registered 1174643
POPE FESTIVAL Registered 9541078
PRELUDE Registered 7153324
PROCESSIONAL Registered 1205874
R AND R UZBEKISTAN Registered 7155759
RELAPSE Registered 1241007
RUN FOR TIN Registered 1275788
S P 37597 MEDLEY Registered 8893879
SAD LOVER S WALTZ Registered 1280919
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SHUT US DOWN Registered 1336113
SOMEDAY OUR LOVE WILL SELL US OUT Registered 15139903
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SP THIRTY SEVENTHOUSAND FIVE NINETY SEVEN MEDLEY Registered 8893879
SP THREE SEVEN NINE FIVE SEVEN Registered 1806958
SP37957 Registered 1806958
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
UNDER THE EDGE Registered 1571017
UNE FOIS Registered 1572410
UNTITLED UNFINISHED DEMO Registered 9541079
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WAKA Registered 1597688
WE EAT YOUR CHILDREN Registered 1806955
WE LOVE YOU Registered 1617075
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WHITE FLUFFY CLOUDS Registered 7153326
YOU GOT TO ROLL Registered 15139902
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ZZ TOP GOES TO EGYPT Registered 1748440

 

Bicycle Spaniard Music

AIN T GONNA SUCK ITSELF Registered 7877453
AIN T THAT STRANGE Registered 5962349
ALMOND GROVE Registered 18557419
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BABY ALL THOSE GIRLS MEANT NOTHING TO ME Registered 8634302
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DEEP OBLIVION Registered 8634303
DISINTEGRATING Registered 4848087
EL CERRITO Registered 18557414
EL COMANDANTE Registered 18557413
EVERYBODY GETS ONE FOR FREE Registered 8634312
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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
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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

Advertisers: How is YouTube Any Different Than Reddit?

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July 15 2015 Screen capture from YouTube video by hate rock band Kill Baby Kill which depicts  skinheads killing and burning non-white immigrants.  These channels and playlists are at this very moment being used by violent groups to recruit new members.  

In the wake of the “resignation” of Reddit’s CEO Ellen Pao much has been written about the violently misogynist and racist views expressed on some especially sickening subreddits.   Sam Biddle at Gawker has been particularly courageous in covering the controversy and the cesspool that is reddit.   Read him here, here, here and here.

But in the mainstream press much of the discussion quickly turns to Reddit’s failure to clean itself up and become a profit making company.   Specifically how does one attract mainstream advertisers when your site (in the name of “free speech”) permits a subreddit devoted to pictures and videos of black men being killed and allows users advocate for genocide?

I can see how that would be tough to attract advertisers like American Express and Chevrolet.

What is mystifying to me is why advertisers somehow think YouTube is any different from Reddit?   Remember the scandal back in March when CNN reported that YouTube/Google ran Aveeno and Bud Light advertisements before an ISIS video inciting violence.  This was not an isolated incident.  YouTube shares Reddit’s same absolutist (and legally wrong) conception of free speech.  YouTube is full of violent, racist and misogynist videos that often depict unspeakable cruelty.   Some may argue that there is some sort of educational or newsworthy value to the videos.  But read the comments. Look at the user names.  That is not what is going on here.

Back in 2013 I wrote an open letter to the artists that appeared on the YouTube Music Awards asking them to ask YouTube to clean up its act.   Since this letter is so similar to the complaints about Reddit I thought we should re-run this story.  It is posted below.

YouTube Music Awards Artists Can Help Clean Up YouTube

https://thetrichordist.com/2013/11/07/ytma-artists-can-help-clean-up-youtube-an-open-letter-to-jason-schwartzman-lady-gaga-spike-jonze-m-i-a-arcade-fire-and-macklemore/

11/07/2013
This is not about whether the YouTube Music Awards were a train wreck or not.  I’m not going to criticize the overall quality of the show’s production.  Live shows are tough.  I’m a performer, I know.   I’ll leave the criticism or praise of the show itself to others.   I enjoyed the show and thought it had its moments.  It was nice the public got a vote. And hey Eminem even got an award for an album that wasn’t out yet!

This is not a pile on.  This is about something entirely different.

This is about YouTube’s lack of corporate responsibility and artists’ traditional role as the first to use their influence to demand corporate responsibility in the face of massive corporate influence. 

This is about otherwise sensible and decent artists who I LIKE AND RESPECT that seem to have been unwittingly duped into lending their credibility to a site that hosts and often directly monetizes (with advertising) videos that promote hate, animal cruelty videos, human trafficking ads, beheading videos, jihadi recruiting videos, playlists devoted to violence against women and other disgusting stuff.  This site is YouTube.

Think about it.

 

*Would artists perform on the MTV music awards if MTV broadcast hate videos from bands like Final War, Skrewdriver or Kill Baby Kill?  (That would never get past MTV’s standards and practices)

*Would an artist host the Grammys if The Recording Academy  were in the business of distributing cat kicking videos? (That would never get past CBS’s standards and practices)

*Would artists perform for a network that also had channels that seemed to be exclusively devoted to rape scenes? Real and from movies?

*And again, would artists make videos for a company that distributed a snuff film that shows a man decapitating his wife?

(Ed note: It should be noted that extreme violence,violence towards women, racism, hate, etc are all standard exclusions in artists recording and publishing agreements for licensing – and for good reason.  Why should YouTube get a pass on this?)

Now I feel confident that no artist who participated in the YouTube awards would knowingly support this kind of activity. I have to assume that they are as unaware as I was that this unspeakable stuff is on YouTube and YouTube is profiting from its repeated viewings.   If it weren’t for my University of Georgia research I would not have been aware of the extent of the problem either.

However, unlike many problems in the world, this is a problem artists can actually do something about and do some good in the process.

Assuming that YouTube does their music awards next year,  artists could do good by demanding that YouTube clean up their act before participating.  And there’s no time like the present to get started with the clean up.

I anticipate that YouTube will say that the videos violate YouTube’s terms of service and that YouTube will take down the videos if they are notified by a sufficient number of members of the YouTube community.  Or you could say that YouTube will take them down if YouTube gets caught enough times. (They never say how many “flags” are enough.)

Many of the videos already have graphic content disclaimers.  Someone–presumably YouTube itself or the YouTube community–has already flagged these videos, so YouTube knows what they are hosting!   I think YouTube needs to be much more proactive in cleaning up their act, and the artists who associate themselves with YouTube have an opportunity to do something about it.

Artists who performed this year could do good now by publicly  demanding that YouTube take down these offensive videos, stop advertising on the videos and give to charity Google’s share of all revenue generated to date from these videos.  For instance, the revenue from the Final War song below could be donated to The Anti-Defamation League.

Screen Shot 2013-11-05 at 2.30.29 PM

Beheading Videos.

I’m leaving out the screen capture on this one.  But if you search YouTube for “Beheading Mexico”  you will find a snuff film of a man decapitating a woman, (purportedly for infidelity). There is no news or freedom of speech issue here.   There is no editorializing or reporting here.  Just the raw footage.  You also find the chainsaw beheading execution of a man by the a notorious drug cartel. The reason the drug cartel filmed this execution was to intimidate and terrify people. Same with decapitation by various radical jihadi groups.  By hosting and profiting from these videos YouTube is amplifying the terror these groups intended to cause.

In the past when I queried this search on YouTube I came up with sponsored (advertised) videos for “male baldness cures” and other odd products that relate to the head. This leads me to believe there is some sort of keyword specific advertising going on.

Playlists Devoted to Violence Against Women

YouTube has thousands of videos that depict rapes and violence against women.  Some are scenes from movies but others appear to be real footage from security cameras, cellphones and even professional cameras.   Regardless they are often grouped into playlists.  It should also be pointed out that many of the rape videos purport to be of underage girls (see below). I believe these titles are designed to specifically appeal to pedophiles.   If anyone does not believe that these videos have any effect on the young men who watch them just read the comments.   I dare you.

Here’s one such playlist “YouTube Mix – rape camera”   (I’ve catalogued dozens). The first video below “sketch” may seem to have an innocent title but trust me you don’t want to watch it. This playlist also contains a notorious and disturbing real video of a young teenage girl apparently being groped and molested on a school bus.   Note the advertising from Inspirato/American Express, Airborne and Xfinity.   Tweet at American Express.  Tweet at Xfininity.

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Neo Nazi bands and recruitment.

There are hundreds if not thousands of videos by Neo Nazi and  hate bands on YouTube.   Check the ADL list of “Bigots that Rock” and try a YouTube search yourself. Two things quickly become apparent.

1) Many of these videos YouTube has monetized with advertising.

2) The YouTube channels that host these videos appear to be actively recruiting members for various hate groups.  Look at the comments and email addresses displayed in the videos.

In the example below RNskins88 channel appears to be run by a Greek neo nazi group but in comments I’ve highlighted a supporter of the Aryan secessionist group Northwest Front actively recruiting. (BTW 88= Heil Hitler)

Tweet at Showtime.  Tweet at Chevrolet. 

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Do it for the kids.

These are just a few of the numerous categories of vile videos you find on YouTube.  It’s really quite startling when you begin to examine what they will host and monetize.  But to me the much bigger problem is that YouTube’s key music demographic are children.

If you have children you know that they don’t listen to Spotify or iTunes radio.  They get their music from YouTube.  They watch TV on YouTube.  They get the vast majority of their entertainment from YouTube.  While YouTube theoretically age restricts videos all the videos above are available even if you are not logged into an account.  Thus they are not age restricted unless you are logged in. I didn’t even get a graphic content warning on several of the most violent videos.   So basically when your kids are on YouTube ALL of this content is there and available to them to watch.

Music videos drive a large percentage, if not a majority of the traffic to YouTube so we artists have a special obligation to ensure that we are not a “gateway drug” for the really disgusting stuff that YouTube hosts.  I humbly ask you to join me and ask YouTube to clean up their act.  Do it for the kids.

This is not a matter of freedom of speech or censorship.  YouTube is a private company and they can choose NOT to host certain videos. They already choose NOT to host porn and certain other content.   If someone really believes they need to show the world a beheading video they can post it on their own website.  YouTube is not required under first amendment principles to host it.  That is a false argument.   And they are certainly not required to monetize videos like these with advertising.

If YouTube really wants to be an alternative to television and have the YouTube music awards be a rival to the Grammys they are gonna have to clean up their act.

Speaking Truth to Power and Speaking Truth to Friends

Music Technology Policy

VERMILLION
Hell, I got lots of friends.

DOC
I don’t.

Tombstone, written by Kevin Jarre

A friend is someone whom you trust to do the right thing.  Sometimes you’ll hear people say that a friend did something uncharacteristic.  If they are really your friend, you will be the one to stand with them in those moments and say that just can’t be right.  Give them another chance to prove themselves.

So it is with National Public Radio’s short-lived membership in the MIC Coalition, the massive lobbying group organized by…someone…to oppose the Fair Play Fair Pay Act guaranteeing artist pay for radio play.  By the looks of it, those organizers were the usual suspects at the National Association of Broadcasters and Google.

As I mentioned in my presentation last week at the Copyright Society of the USA in Austin, the MIC Coalition members are companies and trade associations with a combined…

View original post 537 more words

Cause and Effect? NPR exits Mic-Coalition and Pandora Stock Plunges

We are not really sure if these two events have anything to do with each other.  But we’d like to think they are related.  It serves as warning to other companies that decide to rely on government lobbying and mandates instead of old fashioned hard work and innovation to create a profitable company.

NPR Withdraws from Mic-Coalition.

http://www.billboard.com/biz/articles/news/legal-and-management/6633535/npr-follows-amazon-in-withdrawing-from-mic-coalition

Pandora stock falls 6.66%

http://finance.yahoo.com/q?s=P

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Why Innovate When You Can Legislate, Investigate and Intimidate? Spotify Wants Government to Save it From Competition

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A Timeline of Spotify hardball lobbying efforts with EU, State AGs, Executive branch, DOJ, FTC and Congress since hiring former Obama/Clinton administration official. 

We have been tempted to stay out of the debate over Apple Music and let the three big music tech companies Apple, Spotify and Google/YouTube rip each other apart.  After all,  real market competition from these companies for our recordings and songs could eventually lead to better pay for artists.

But we can’t sit this one out.   Why?   Because Spotify as usual seems to be up to its habitual dirty tricks using our money.  This time by hiring a recently departed Obama administration official and apparently using his revolving-door political connections and some of Pandora’s lobbyists to engage the U.S. Congress, the Federal Trade Commission and state Attorneys General to protect Spotify’s  untenable and money losing business model.  The end goal of these efforts WILL negatively impact artists.

Jonathan Prince Employment Timeline--Open Secrets
Jonathan Prince Employment Timeline–Open Secrets

If you zoom out and look at Spotify’s lobbying activity in sum total they appear to have three goals:

1) Protect their free tier (which pays artists 1/7 of what the premium subscription service pays) but makes them more valuable at IPO or as a takeover target to an advertising-driven company like Google.

2) Get Apple under some kind of anti-competitive regulation in EU, US and state AGs.

3) Get rights holders of sound recordings (Artists and Record Labels) under some sort of anti-competitive regulation in EU, US and US states  so they are obligated to license sound recordings to Spotify outside of the free market (like the ASCAP and BMI rate courts).

Yes, we were disappointed with Apple’s initial attempt to not pay artists during it’s 90 day free trial (they’ve since changed their tune), the fact is Apple is still better than Spotify for artists:

1) Apple free trial pays about $0.002  a spin while the last time we checked Spotify pays about $0.0009 per spin on their ad supported free tier  (Online advertising rates have experienced a secular decline since then).

2) Apple free trial is 3 months.  Spotify free tier is forever. After 3 months Apple free trial ends and subscribers move up to subscription tier.  We expect Apple’s subscription tier to pay more than Spotify subscription so this means a significant increase in revenue per spin to artists.  Plus–we don’t have to go through the absurd revenue share calculation of the advertising peddlers.

3) Spotify is actively trying to get users to unsubscribe from its premium service offered through the Apple App Store, which will likely mean an overall net reduction in revenue to artists due to inserting inconvenience into the transaction.  Apple is actively trying to encourage subscription uptake which will mean an overall net gain in revenue to artists.

Artists have an interest in seeing a competitive marketplace for streaming services that isn’t dominated by the duopoly of YouTube and Spotify. According to Kara Swisher, the top tech journalist:

Omid Kordestani, who has just temporarily replaced Nikesh Arora as chief business officer of Google, is joining the board of Spotify, according to people with knowledge of the situation.

In addition, sources said, one of the search giant’s former execs, Shishir Mehrotra, will become a special adviser to CEO Daniel Ek and the company’s management.

The move is a fascinating one, especially since sources inside Google said that new YouTube head Susan Wojcicki has expressed interest in acquiring the popular online music service if it were for sale.

YouTube and Spotify share a board member! (DOJ: where is that anti-trust investigation?)   Every quarter when artists get their royalty statements they have tangible evidence of the damage created by this duopoly.

Here is the kicker, we should welcome investigations by the  European Commission, State AGs, Congress and DOJ into anti-competitive  behavior and collusion in the digital music licensing marketplace for sound recordings.  But it must include ALL players!  Broaden it to include Spotify, Google/YouTube,  Pandora, Amazon, IHeartRadio, NPR, MERLIN (indie label licensing authority) and the major labels. (The feds already have songwriters and their PROs under DOJ supervision).

Fair is fair. Democracies don’t function when certain politically connected companies and individuals get different treatment under the law.  Further the government needs to get out of the business of licensing music. (See my argument in detail here.) We are wasting vast amounts of federal manpower and taxpayer dollars  when our nation(s) faces other more important challenges.  Seriously we’re worried about streaming services profit margins when we face very real threats from Greek bankruptcy? A resurgent and expansionist Russia? Chinese hackers?Federal cyber breaches, and ISIS inspired terrorism?

Let me remind you once again: Artists are not asking for a handout from the federal government. In this debate it is the multi-billion dollar streaming services asking for the handout. Spotify is asking for protection from competition. Artists welcome competition. Artists are simply asking the federal government to do less and stop regulating the market, let our songs and sound recordings be priced in the free market.

References For Timeline

http://www.odwyerpr.com/story/public/3207/2014-09-25/prince-shuffles-spotify-head-comms.html

http://www.billboard.com/articles/business/6480332/spotify-vp-public-policy-lobbying-dc

http://www.theverge.com/2015/5/6/8558647/apple-ftc-spotify-app-store-antitrust

http://9to5mac.com/2015/05/04/doj-investigation-apple-beats-music/

http://9to5mac.com/2015/05/07/apple-beats-music-spotify-complaint/

http://www.theverge.com/2015/5/19/8621581/sony-music-spotify-contract

http://www.rollingstone.com/music/news/leaked-sony-spotify-contract-reveals-inner-workings-of-streaming-music-20150521

http://www.reuters.com/article/2015/07/11/us-apple-music-antitrust-idUSKCN0PL03O20150711?9to5

http://www.politico.com/story/2015/07/spotify-makes-case-against-apple-in-congress-119976.html

IMMF Is Not MMF: But are they even worse?

Screen Shot 2015-07-11 at 2.56.51 AM

The International Music Managers Forum is the parent organization which nominally oversees the Music Manager Forum affiliates in various countries around the world.  Last week we broke a story that a whistleblower indicated the Music Managers Forum in the UK along with its sister organization Featured Artist Coalition are taking money from Google and Spotify.  We have since had a second source corroborate this.

This is important because MMF and FAC have been  strong advocates for Spotify and its low paying ad supported free tier. Further many artists feel betrayed that MMF/FAC hosted a series of “informational” meetings with Spotify while apparently taking money from Spotify.   It’s not a good look for the (formerly) well respected institutions.

Naturally  in the wake of this revelation we received communications indicating that certain members of the IMMF were not happy with this news, and seemed to want to distance themselves from the MMF.

Fair enough.  So we looked into the IMMF to see what they are about.  What we found is just as ugly:

1) The IMMF is a member of  Copyright 4 Creativity. Other members include the artist-hostile-anti-copyright-Google-funded EFF as well as the CCIA and CDT.

2) The Executive Coordinator of  Copyright 4 Creativity is Clara De Cook.  She also appears to be the lobbyist for Google in the EU.

3) The IMMF is a signatory to the Copyright 4 Creativity manifesto which contains this clause:

“Ensure Monopoly Rights are Regulated in the Online Environment: Limitations and exceptions act to counter-balance the lack of competition that is created by the granting of monopoly rights in copyright law. In order to protect creativity and innovation we must ensure that these monopoly rights are also regulated in the online environment.”

Sounds okay right?  No one likes big monopoly corporations!

Uh… except that’s not the kind of  monopoly they are talking about.  They are talking about YOUR individual rights as a monopoly!! Specifically your copyright “monopoly” over your songs and sound recordings, which is the same kind of “monopoly” you have over your guitar, your car, your house or your body, not an anti-competitive monopoly.   “Regulating” means taking away your right to decide how your sound recordings and songs are exploited in the online environment and at what price.   Implicit is the government would somehow set the rates and uses.

What could possibly go wrong?  The big internet companies would never out lobby and out spend us in Washington and force us to take rates we’d never agree to in a free market!  That would never happen!  Right?  (See Pandora Media.)

4)  The Copyright 4 Creativity Manifesto which is endorsed by the IMMF  contains cute little graphics like this cartoon:

Screen Shot 2015-07-11 at 3.40.48 AM

This is some real intelligent thoughtful stuff here.   Next manifesto maybe they should try using only decade old internet memes.  And BTW the last frame to be accurate should read:

“Lawsuits! When the artist figures out the manager stole his copyrights”

Not cool at all.  But it’s really no surprise.  Sleazy managers ripping off artists? Again?

Same as it ever was.

 

 

Spotify Windows App Store Subscriptions, Now with Added Misleading Advertising

If Spotify finds the App Store deal so unethical, there’s an easy solution: Pull down the Spotify App from the App Store. They can leave any time.

Music Technology Policy

You’ll remember that The Verge ran the leak of Spotify’s agreement with Sony Music.  Now The Verge is running a story about subscriptions to the Spotify app from Apple’s App Store:

Spotify is trying to raise awareness around the fact that it’s cheaper to subscribe on the web instead of through Apple’s App Store. The leading subscription music service plans to email iPhone customers the below note encouraging them, if they haven’t already, to start paying at Spotify.com and save a few dollars. “In case you didn’t know, the normal Premium price is only $9.99, but Apple charges 30 percent on all payments made through iTunes,” the email blast reads. “You can get the exact same Spotify for only $9.99/month, and it’s super simple.”

Here’s the actual emails:

Spotify Attachment-1.0

Quick–based on what you just read, who sets the price for the Spotify subscription through the App Store?  Apple or Spotify?

I bet you…

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The MMF’s Google Problem

Music Technology Policy

David Lowery’s recent post on the Trichordist reveals the disclosure by an apparent whistleblower that the Music Managers Forum and to some extent the Feature Artist Coalition have each been taking undisclosed money from Google and Spotify.  (Given the context, I assume the whistleblower is referring to the MMF chapter in the UK.)  Why is this important?  Because when confronted with the artist rights grass roots movement that Lowery personifies, we can expect Google to do what they always do–try to co-opt it one way or another.

Want evidence?  If you’ve had a look at the Public Citizen report “Mission Creep-y“, Google’s technique of buying their way into issues or industries and increasing their dominance in their ownership and influence through control of resources should come as no surprise.  The venerable good government group provides extensive documentation of Google’s massive investment in indirect lobbying through funding a host…

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A Declaration of Principles for an Ethical and Sustainable Internet

Originally written and posted in 2012, here again for your July 4th weekend…


 

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 the economic benefits of a few big companies should be valued over the labor rights of many. This problem is what drives workers to organize to protect their labor and demand fair compensation. Not only are artist rights protected by the US Constitution, artist rights are also internationally recognized as human rights protected by many international treaties, including the Universal Declaration of Human Rights. Unfortunately, however, there are those who seek to capture the value of artist rights profit only for themselves by systematically violating these rights for commercial gain.

A free and open internet works best without overbearing regulation, but it will not work at all without protection for fundamental rights of working people.

2. CONSENT IS THE FOUNDATION OF CIVILIZATION: RESPECT ARTISTS’ INTEGRITY
Your right to swing your fist stops at the end of my nose. Your rights end where mine begin.

Rights secured by the Constitution are intended to protect the individual from hostile majority forces and the tyranny of the mob, particularly the corporate mob. This is especially true regarding copyright, which is itself a vehicle of the right of free expression for individuals, and protected by the Constitution.

Everyone understands the value of individual privacy in the digital age. The essence of the artist’s control over the integrity of their work is not that different. Individual consent should be required for a corporation to profit from taking any creative work (just like individual consent is required for taking personal information) because the creative work goes to the artist’s personhood. Protecting an individual’s right to their personhood and the protection of their free expression are building blocks in the foundation of civilization.

3. PROTECT INDIVIDUAL FREEDOM OF EXPRESSION: DON’T TRIVIALIZE CENSORSHIP
Freedom of speech requires freedom of expression. Copyright protects free expression. Together, they ensure a robust marketplace of ideas that advances truth, knowledge, and culture.

Let’s get this straight. Censorship is intolerable. You don’t have to look very far to see artists being censored by governments — there are many historical examples . No one understands this more than the scores of individual artists, musicians, painters, writers, poets, filmmakers and creators of all disciplines who have actually (and literally) have been persecuted, disappeared or assassinated for their views all over the world. Sadly, many confuse the actual freedom of expression with the mistaken idea that preventing the illegal exploitation of that very expression is the same thing. It’s not.

The copying and distribution of those expressions without the creators permission is simply exploitation without consent or compensation. Would you think that a car thief is being censored when they are prosecuted for stealing your car or a bank robber is being censored when they are prosecuted for stealing your money? Don’t trivialize “censorship”.

4. FAIR COMPENSATION: IF YOU DON’T LIKE IT, DON’T BUY IT
In any value chain where the individual creator’s work is exploited, the creator must be compensated.

Most fair and reasonable people embrace “Fair Trade” products to support and encourage fair compensation of labor. Unions have fought long hard-won battles for the protection of labor rights. As a society we recognize the individual’s right to fair compensation of labor as a fundamental cornerstone to an ethical and healthy society. The internet is inhabited by as many different varied participants as the physical world, and the respect for human labor should not be devalued simply because technology makes it possible to be unethical.

It’s very simple–the answer if you don’t like an artist’s work is not to steal it–just don’t buy it. They’ll get the message.

5. MUTUAL RESPECT: IT’S ABOUT GETTING IT RIGHT, NOT GETTING AWAY WITH IT
Mutual respect for the diversity of all online citizens is the cornerstone of a healthy and robust community.

The mutual respect granted by intellectual property rights allows individual creators the freedom to determine what permissions they wish to grant and at what price. No one has to pay that price, but the creator is entitled to set it. Denying these freedoms to creators because the mob or a public company wants to overrun a musician, author, illustrator or photographer violates the very protections against mob rule that the Constitution is intended to secure. Sadly, this is largely how individual rights are viewed today by some online corporate interests.

6. PARASITIC EXPLOITATION IS NOT INNOVATION: FREE AND OPEN SHOULD BE FAIR AND HONEST
The illegal exploitation of individuals for commercial gain is not innovation, it is techno-thuggery and cyberbullying.

We see many companies on the internet illegally exploiting the work, labor, innovation and creations of others simply because they can get away with it. We’re often told that innovation requires the unauthorized exploitation of creators in some kind of technological determinism that rejects the innovation of creators because it“scales”. That is just another way of using “convenience” as an excuse for theft. Any business that requires the illegal exploitation of individuals to be profitable is not a business but rather is a parasitic engine of oppression.

7. SUSTAINABLE INNOVATION SOLVES PROBLEMS: FAIR NOT FAKE
Sustainable innovation is best represented by solving problems, not creating them by adding intentional opaque layers of obfuscation.

The organized and deliberate complexity of some online ad networks, pirate site operations, and other businesses creates an impenetrable black box to protect illicit money flows and give the participants plausible deniability. Then we are told to “follow the money” through advertising networks, down a rabbit hole to a maze followed by another rabbit hole. That’s not innovation. It is old school wire fraud. This should not be a badge of honor for the online community but rather a point of embarrassment that the Internet—one of the greatest technological achievements of all time–is trivialized by making it nothing more than a safe house for many illegitimate businesses profiting at the expense of honest citizens.

8. COMMON GOALS, BEST PRACTICES AND SOLUTIONS:
There are centuries of mutual ground between creators, commerce and rights holders. Let’s not throw this away.

Let’s not set a goal of building a large database for clearances of all copyrights and do nothing until it is operational. That solution almost guarantees that there won’t be many new works to put in that database. Such a database has never existed and is incredibly complex. A transparent rights clearinghouse is a possible solution, but the lack of one it is definitely not an excuse for bad behavior.