Must Read: Austin Music Census

The Austin Music Office and Economic Development Department of the City of Austin commissioned the Austin Music Census that was released this week to a standing ovation at a standing room only meeting of the Austin Music Commission:

Coverage of the Census in Texas Monthly suggests that the “middle class musician” is mostly a myth:

“Musicians often get paid less—or, at best, the same—as they’d make ten years ago. In the tech industry, if wages in 2015 were the same as wages in 2005, it’d be awfully hard to keep coders.”

The Census garnered a supportive post from the editorial board of the Austin-American Statesman (“Austin Music Census finds city at tipping point as Live Music Capital”):

Less talked about are the struggles local musicians, venues and other industry professionals endure in a city with an ever-growing affordability problem. The Austin Music Census released this week is the first comprehensive attempt to quantify what the industry is up against.

The city-commissioned report, presented during the Austin Music Commission meeting, shows what many have long suspected: Local musicians and music venue owners are finding it more difficult to live and do business in a city that is increasingly becoming unaffordable for middle- and lower-income workers [like San Francisco].

You can read the study at the ATX Music site.

@zoecello’s Royalties Give the Lie to Daniel Ek’s “Greedy Middlemen” Rant

Music Technology Policy

Sony Contract Leak: The Bright and Shiny Object

Regardless of who you believe actually leaked Spotify’s contract with Sony Music, Spotify’s CEO Daniel Ek certainly is trying to capitalize on the leak.  (“Spotify CEO says middlemen gobble cash“)  It sounds like this is just another indication of how badly a defiant Spotify has broken trust with its label “partners” and their artists.

The spin from Mr. Ek is that he wants you to believe that the reason that artists think Spotify’s royalties are low is not because of Spotify, it’s because of the greedy major labels.  More accurately–with the benefit of the contract leak–any label that has MFN treatment with Sony Music.  (Because if you’re leaking contracts, you can’t really leak all the contracts, but you don’t need to if you can leak a single MFN contract from which terms can be extrapolated due to the MFN treatment.)  …

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Warner Music Group Free Streaming Advocates Lose Another $100m in 2014… Can’t Make This Up…

We can’t help but think these two things are related. Read the full stories at DMN… Here and Here…

WarnerMusicGroupLosses

 

 

WarnerMusicFreeStreaming

So how’s that $3.00 per “user” annual ARPU working out from free streaming?

It’s amazing to us that the current conversation and controversy is still focused on the free tier. We’re not entirely certain that Spotify can even work at $10 a month / $120 per yer, per subscriber. The number of subscribers needed to replace the revenue from transactional sales exceeds those of any current mature subscription business.

It will take  60 Million PAID subscribers at $10 a month to generate about $7.2b in gross revenues annually. It takes another 30 Million (or 90 Million PAID Total) to come up with $7.5b payable to rights holders. Ninety Million. Paid…

Here’s some context for the chart above. Netflix only has 36m subscribers in the US, no free tier, and massive limitations on available titles of both catalog and new releases. Sirius XM, 26.3m in the US as a non-interactive curated service installed in homes, cars and accessible online. Premium Cable has 56m subscribers in the US paying much more than $10 a month and also with many limitations. Spotify… 3m paid subscribers in the US after four years. Tell us again about this strategy of “waiting for scale.” Three Million Paid… Three…

* 3m Spotify Subs Screen Shot
* 26.3m Sirius XM Subs Screen Shot
* 36m Netflix Subs Screen Shot
* 56m Premium Cable Subs Screen Shot
* $7b Music Business Screen Shot

It’s just math.


 

Streaming Is the Future, Spotify Is Not. Let’s talk Solutions.

Music Streaming Math, Can It All Add Up?

Spotify is the Problem, Not Labels. (Well, Mostly…)

 

 

 

5 Reasons The Major Labels Didn’t Really Blow It With Napster | Hypebot

Whatever the reason, it’s bullshit. The major labels were right not to compromise with Napster. I was VP of Electronic Music Distribution at Sony Music at the time, dealing with these issues day to day. Understandably, some people may think, what does it matter if the majors were right or not? They lost. But I think its important to understand the various facets and history of these events, if only to provide perspective for issues the industry is still dealing with today.  So, at the risk of being unhip, here are Five Reasons Why The Major Labels Didn’t Blow It With Napster.

READ THE FULL POST AT HYPEBOT:
http://www.hypebot.com/hypebot/2015/05/five-reasons-the-major-labels-didnt-blow-it-with-napster.html

@zoecello, @theblakemorgan, @themisreadcity, @thatkatetaylor at Global Forum on #irespectmusic, artist rights

Music Technology Policy

Once again, MusicCanada’s Global Forum at Canadian Music Week in Toronto gives a major platform to creators to discuss the human rights of artists and how to deal with the Silicon Valley onslaught.  This year featured a great interview by Kate Taylor of the Globe and Mail with Zoë Keating, Blake Morgan and Scott Timberg.  Watch the full video for the most insightful commentary on our struggle you’ll hear for a long, long time.  And consider this an invitation to sign the #irespectmusic petition and support artist pay for radio play!

image

Also big thanks to Toronto Mayor John Tory for showing his support for artists in Toronto and beyond!

And an especially warm homecoming show by Canadian born Zoë Keating, achingly cool memories for all who heard her.

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Another Artist Rights Victory: Turtles Win Class Certification in Class Action Against SiriusXM #irespectmusic

Let’s see how long it takes for NPR to cover this story given its news blackout on any stories that challenge the values of its political allies in the Mic Coalition….

Music Technology Policy

Ruling on Turtles’ Class Certification

More on this later, but great news from the Turtles class action against SiriusXM.  The Turtles struck another blow for artist rights when the Court approved the band as representatives of the class of pre-72 artists similarly ripped off by Sirius.  The Turtles lawyers Gradstein & Marzano were also appointed class attorneys.

A good day for those who respect music.

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Digital Media Association (DiMA) Always Against Musicians

Who is DiMA? Glad you asked, the Digital Media Association. Why do we care? Well, because they are actively working against artists rights. How do we know? Three words… “Defending Against Songwriters”. Yes, DiMA is dedicated to “Defending Against Songwriters” because, you know songwriters are a force that businesses need to defend themselves against.

Wow, really? Seriously? Ok, check it out…

DimaDoubleDipSongwriters

But lets take a look below where current DiMA policy positions are directly in opposition to artists and songwriters rights.

DiMA supports Pandora buying a terrestrial radio station in an effort to lower the royalties Pandora will pay to songwriters.

DiMA is opposed to the Fair Play, Fair Pay Act that would pay performers a terrestrial radio broadcast royalty.

DiMA is opposed to The Songwriter Equity act that would allow songwriters the ability to negotiate fair market rates for their work.

DimaPOlicyAgainstArtists

Who would work with DiMA that wasn’t forced to via statutory rates and rate courts?

 

 

Daniel Ek Brings Another Whopper and Claire Atkinson Let’s Him Get Away With It

It’s not every day that we can get two “Big Lies” out of one Daniel Ek interview, but the Claire Atkinson reporting in the New York Post shows a distinct lack of fact checking that let him get away with another whopper.  (“Spotify CEO says middlemen gobble cash“)

Ek suggests there are perhaps too many middlemen, coupled with the problem of antiquated collection systems. “Some systems and processes use physical pieces of paper. How do you do that when every unit would be in the billions? That’s a lot of paper,” says the tech-focused Swede.

Antiquated?  You know who uses “physical pieces of paper”?  Google.  Anyone knows this who gets a Google royalty statement which is pretty much everyone.  You can elect to get accounted to electronically (which usually signs you up for a bunch of other sneaky stuff), but the default is a paper statement.

But–but–if you read the Spotify agreement with Sony that was posted on The Verge (and has now been taken down), specifically Paragraph 2 “Reporting and Payment,” you would know that all of the statements from Spotify to Sony are required to be in “machine readable” form.  You can safely assume that all the major labels are accounted to the same way–in fact, everyone we know who gets a statement from Spotify gets a digital statement  We can also tell you that we have never heard of anyone who got a paper Spotify artist statement.  (Which, by the way, doesn’t mean that the statement is correct, paper or digital.)

They may send paper statements to publishers, but as far as we know, all of the major publishers and administrators require digital statements, particularly for streaming services.  This would include companies like Kobalt, Ole, Songs, Peer and many others, including ASCAP, BMI and SESAC.  There’s really no believable way that anyone with a catalog of any size could get a paper statement from Spotify because there would be hundreds if not thousands of pages even for a relatively small catalog.  And a check for $9.  The paper for the statements would cost more than the earned royalties.

We are just mystified as to why an outstanding reporter like Claire Atkinson would allow Ek to get away with what is clearly a questionable statement.  Unless Ek never read his contracts and never talked to his royalty department, he knew the statement was false when he made it.  Claire Atkinson should have asked him for names or picked up the phone and asked any CFO or accounting manager in any of the labels or digital aggregators that do business with Spotify and they could have told her off the top of the head that Ek was making a false statement.

We don’t see how it could have been anything other than a knowingly false statement, also called a lie.

Why didn’t anyone fact check it?  Because just like the “greedy middlemen” headline, it fits the 1999 narrative that Ek and the McCoalition are still trying to peddle.  The music business is so antiquated that they’ll never been as hip as “the tech-focused Swede” with his monopoly music service.  Just like nobody questions how Spotify gets a valuation that’s higher than any record company.  Ek is sooo 1999 from biting the hand that feeds to the Dot Bomb valuations.

Hey, Mr. Bit Torrent–1999 called and wants its bullshit back.  And shame on the New York Post for publishing these rants without checking the facts.

It’s the Data, Stupid: Here’s How Google Gets the Data About You They Don’t Already Have

And then there’s YouTube….

Music Technology Policy

The Wall Street Journal reports that Google intends to compete with Amazon, eBay and every other online retailer:

Google Inc. will launch buy buttons on its search-result pages in coming weeks, a controversial step by the company toward becoming an online marketplace rivaling those run by Amazon.com Inc. and eBay Inc.

The search giant will start showing the buttons when people search for products on mobile devices, according to people familiar with the launch.

The buttons will accompany sponsored—or paid—search results, often displayed under a “Shop on Google” heading at the top of the page. Buttons won’t appear with the nonsponsored results that are driven by Google’s basic search algorithm.

Given Google’s search monopoly, this move accomplishes at least two predatory moves:  First, Google will get personally identifiable data from you about your purchasing habits as well as your name, address, credit card number, phone number and whatever else they can extract…

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