Is @NPR “Bearding” for National Association of Broadcasters @nabtweets, Pandora and Google?

See todays earlier story:

Will @NPR still #IRESPECTMUSIC and @allsongs After Joining Dark Side Coalition?

You can’t get much lower than “free and in perpetuity.”   NPR already enjoys an enormous subsidy from artists. Plus many of us contribute directly to our local NPR affiliates. Why is NPR “bearding” for Google PandoraClear Channel and National Association of Broadcasters?

Here is a contract for a recorded live performance on one of the flagship NPR stations.   We artists happily sign these contracts because we believe in the public good that NPR provides.   We help subsidize your stations. I  have signed almost this exact contract on dozens of occasions.  Why are you stabbing artists in the back? We are on your side.  You think NAB, Clear Channel and the libertarians of Silicon Valley are gonna support public radio?

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Will @NPR still #IRESPECTMUSIC and @allsongs After Joining Dark Side Coalition?

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Gee this wasn’t coordinated at all. Two new Astroturf (squared) organizations in two days (with possibly the same web designer?)  The day after the announcement of the the new ReCreateCoalition, an AstroTurf organization composed almost exclusively of Google connected Astroturf organizations,   some of the same companies plus The National Association of Broadcasters, I Heart Media (Clear Channel)  Pandora and NPR have announced the creation of the MIC-Coalition in order to lobby AGAINST fair digital royalties to artists; AGAINST terrestrial royalty for performers,  and to keep songwriters under the oppressive and unconstitutional DOJ consent decrees.  Read the website it’s unbelievable.   Why the hell did NPR join?

Does NPR really want to have this fight with artists? Cause we are ready.

NPR: Do you think it’s fair that the US is one of the only industrialized nations to not pay performers for terrestrial broadcast?

NPR: Do you think it’s fair that ASCAP songwriters are kept under the 1941 anti-monopoly  DOJ consent decree which forces them to give special treatment to companies that look very much like monopolies  (YouTube/Google, Pandora, NAB etc)?

NPR: You realize that you get an artificially low rate from songwriters and performers right?  Largely because there is/was goodwill between us.  Do you want us to lobby the CRB to make you pay the same as everyone else? Also aren’t there still a bunch of public broadcasting haters in congress?

Answer us. We’re waiting.

Innovation: Did Google Just Launch a New Astroturf Organization Made Out of Own Astroturf Orgs?

A new astroturf organization called the Recreate Coalition just launched in Washington DC.   Here’s the press release!

<Yawn>

But wait you should be really excited because this is essentially an astroturf organization created out of other Google connected astroturf lobbying organizations. Almost all located within a few blocks of each other!  Now that is innovation!  While Apple is still stupidly producing iPhones and increasing net profit 33% a year,  Google is running circles around Apple by creating new ways to pretend like they are NOT influencing anyone in Washington DC.  You know kind of like how they were “hands off” in the Net Neutrality debate.**

EFF?  CCIA? CEA? CDT? MDF*? Public Knowledge?   Are we getting the band back together?  Is this a reunion tour?  Well maybe not,  ’cause the ALA isn’t a Google astroturf organization (yet), but then again they also receive  substantial funding and support from Google.

Hmm… so maybe this is more like a 80’s supergroup.  Some old tired-assed DC lobbyists plus some slightly younger librarians.  Brilliant! Green light that shit! We need a name!  Let’s see Asia is taken…  The Traveling Wilburys taken…Mississippi Google Amicus Brief? too obscure… Why don’t we call it  ReHeatCoaliton.org!  Cause you know it’s just something new made out of leftovers.  (Go ahead it’s safe to click on that link.)

Here is how you can tell if I’m right, that this is simply Google astroturf squared.   If this new coalition advocates anything that is somehow substantially different from what these organizations and Google haven’t already advocated then I’m wrong.  And If so I will personally come to your house and wash your car if you are the first prove I’m wrong.

But you know I’m not wrong.  You know I won’t be washing any cars.

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Recreate Coalition’s “Diverse Group”

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*MDF.  Media Democracy Fund is the sugar daddy of the “grassroots” Fight For The Future which fought for net neutrality and against SOPA. And I do mean sugar daddy cause they’ve funded them to the tune of millions of dollars (between SOPA and NN). They have to be FFF’s main donor. HTF is that grassroots?   But look at MMF  list of grants again and look at the Google Policy Fellowship list (now and over the years) and tell me with a straight face that they are not somehow part of the Google un-Lobby™ network.

**Seriously?  You think Google were hands off? C’mon guys…I’ve got some swampland to sell you.   Look I’m Net Neutrality agnostic.  It’s a well intentioned idea. I’m definitely for the idea behind net neutrality. Depending on how it’s implemented it might be a good law. But another law, the law of unintended consequences comes to mind.  That’s all I’ll say.

UN Rushes Logic Textbooks to UK Green Party Officials

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 UN prepares to airlift logic textbooks to UK Green Party officials.  Above a A Norwegian UN peacekeeping soldier reacts to statements by UK Green Party officials.  Photo by Русский: Фото: Михаил Евстафьев English: Photo: Mikhail Evstafiev (Mikhail Evstafiev).

 This is a direct quote from Caroline Lucas the sole Green Party member of UK parliament.   I’m sure she’s  a nice person.  But this makes no sense and the Green Party needs to be called out on this.

“At present many creators are in a stranglehold from our copyright laws, which see big corporation control the rights to work for eg 70 years after the creator dies in the case of literary, dramatic, musical or artistic works. Some years ago I worked with artists like Billy Bragg to challenge the way that music corporations take a huge cut of royalties, leaving only leftovers for the artists. We wanted to try and return copyright to the artists it’s supposed to benefit.”

Dear MP Lucas/Green Party:

You know the only reason record labels are required to pay artists and songwriters in the first place?   Copyright. We have an exclusive right in the reproduction and distribution of our work.  Without that right those record labels, big technology companies, radio broadcasters, streaming services, television networks, movie studios and YouTube/Google wouldn’t pay us anything.  Nothing.  Zero.  Zilch.

Shortening copyright to 14 years just means these companies stop paying us after 14 years.  They would continue to use our music.  This would be a windfall for these companies.  Also please, can we drop the fiction that you really meant “life plus 14 years?”  Your party’s own statements and documents clearly show you meant 14 years period. That’s why you haven’t changed the website.  I don’t understand why the press is giving you a free pass on this backpedalling.

Further if you expand the “fair use” defense “outside of academia”, i.e. corporations, you further undermine our ability to get paid.   Just ask any professional photographer how  Google Image’s”fair use” has worked out for them.

If you want to do something sensible with copyright to help artists you should strengthen it for individual authors.  Here are two simple sensible ideas:

1) Let artists “opt out” of streaming services if they like…those who chose to stay in can stay in.   At the very least we’d be spared the endless back and forth between pro-streaming and anti-streaming artists.

2) Have copyrights revert to the original authors after a period of time.  (In the US most songwriters get songs back after 35 years.)

 

 

The UK Green Party Finds its Inner Silicon Valley Billionaire On Copyright

Legendary guitarist, DJ and musical innovator Steve Hillage recently provoked an extended debate on Facebook by posting a document demonstrating the UK Green Party’s new anti creator copyright stance.  Among other things they propose a 14 year copyright (a length last seen in 1710) , legalized p2p piracy and expanded fair use “outside of the academic environment.” The last is actually the most troubling. To be clear they are  saying they want academic  “fair use” defenses to extend to commercial endeavors i.e. corporations.  Cause as you know here in the US corporations are people.

Now if I were simply a GDP obsessed American, I might applaud the fact the UK Green Party is willing to give away the rights of their musicians, songwriters, authors, filmmakers, photographers and playwrights to American mega-corporations like Google. For this adds the work of British authors directly to the US GDP.   Companies can now comfortably profit from the distribution and “fair use” reproduction of these works without fear of paying any civil infringement penalties or pesky royalties (See ad supported piracy for how this works).  But if you look at this proposal through the lens of partisan left/right politics the Green Party proposals are essentially a transfer of wealth from all those clever British musicians, songwriters, filmmakers, authors and playwrights to the far right libertarian billionaires of Silicon Valley.  The “useful idiots” in the UK Green Party are handing your wealth to people who would like nothing better than to destroy the environmental regulations the UK Green Party champions.

Funny and brilliant.  I can’t help but begin chanting like a (British) football supporter

Silicon Valley USA! Silicon Valley USA!

Let me be honest with you.  I don’t have a dog in the fight on this one.  I’m not left or even left of center.  I don’t care if the Green Party lives or dies. I’ve described myself over and over again as a raging moderate.  If there was still an “Eisenhower Republican” wing of the Republican party I’d probably join it.  I didn’t like the Green Party economic policies even before they decided to dismantle copyright.  I’m simply here to point out that their policies are stupid even from a center left perspective.

Some of the commenters on Hillage’s Facebook post suggested that the UK Green Party is an organization that would like to return us to an 18th century agrarian economy.  That’s probably an unfair characterization.  But on copyright the 18th century characterization is too generous.  The UK Green party would like to go back to the 17th century.   The copyright term the UKGP  proposes is shorter than the original copyright term created by the 1710 Statute of Ann  (21 years or two 14 year terms).   Further creating “fair use” defenses for commercial endeavors would decimate what revenue there is left for recording artists, songwriters, photographers etc.  If you were not aware Google already argues that its YouTube’s “users” enjoy fair use protections and this rationale allows them to profit handsomely through data mining and advertising on all those unlicensed “user” uploads. Officially extending fair use to all commercial endeavors (not just the cyberbully YouTube) would open the floodgates.   As long as YouTube has free versions of all our songs on it’s service don’t expect revenues from Spotify or other streaming services to ever rise to sustainable levels.  To quote your outspoken countryman Billy Bragg “if we’re pissed off at Spotify, we should be marching to YouTube Central with flaming pitchforks!”

In their defense the UKGP seems to have been fooled by some pseudo-scientific nonsense in a paper by Dr. Rufus Pollack that claims the optimal length of copyright is 14 years. (Pollack may have also influenced UKGP on the decision to allow fair use “outside of academia”).  Pollack is a founder of the Open Knowledge Foundation which is funded by some of those same Silicon Valley billionaires. Surprise!   The disclosure of Pierre Omidyar’s foundation (eBay) as a funder of Open Knowledge should send shivers up the spine of any good British lefty.  The Hewlett foundation is the other main funder. William Hewlett along with his partner David Packard were the key architects and beneficiaries of the Cold War “military-industrial complex.” The same one that Eisenhower famously warned us against.  And you realize of course what we call Silicon Valley is simply the latest incarnation of that same military-industrial complex, this time based upon spying and data mining.

But let me go back to my “pseudo-scientific” comment of a moment ago. This (non peer reviewed?) “paper” has been going round and round the web like a cold sore in an 80’s hair metal band. It seriously needs to be debunked. I think I’ll devote a few days to Zovirax™-ing this sucker in an academic setting later this summer, but for now let’s briefly examine why I call it  “pseudo-sceintific.”  It’s scientific only in the sense that it uses a series of equations to arrive at a number that is 14 years.   The claim that it represents the optimal length of copyright is the “pseudo” part.   The claim rests on a staggering number of assumptions most of which are bad assumptions.  I’ll address just one for now:  The claim that technology has made it less expensive to produce the “original copy” of a work than it did in the past.

How is that a good assumption?  It’s certainly sexy.  It’s what we want to believe.  We love our technology and our devices. We’d like to believe this is true.  But is it true?

Ask yourself this: Exactly how does technology make it any less expensive to write a novel?   Writing a novel is purely a work of intellectual labor.  I suppose it’s easier to spell check…,  the backspace key is more convenient than White-out™ and a brush…  But I’m not seeing any evidence it’s less expensive.   In fact I would argue that since the modern English author lives in a much richer society than Dickens, that the relative cost of his labor is much much higher.   I would argue it is more expensive to make that “first copy” now than it did when Dickens wrote David Copperfield (in Broadstairs Kent not far from my mother’s childhood home).  If this inconvenient fact is popped into Dr Pollack’s equations what happens to his  optimal 14 year copyright?  His whole premise collapses.   And this is just one of the many questionable assumptions that Pollack makes.

To be fair (?!) I should point out  Pollack arrives at this questionable assumption concerning the falling costs of an “original copy” by constructing a unique definition of the costs of an “original copy.”  He includes the costs of licensed reproduction of the work as part of the costs of the “original copy.”  Economists would term this as summing together fixed costs and marginal costs, thus standing the whole concept of “original copy” on it’s head. And it is ONLY through this sleight of hand that he gets his mathematics to (sort of) work.

In short one could reasonably argue the whole paper is an elaborate word puzzle or parlor trick.

But Pollack isn’t the point.  The misguided and unfair treatment of artists by the UK Green Party is the point.

What I find most amusing is that the Green Party for all practical purposes wants to abolish an individual’s copyright in order to  “expand the area of cultural activity, that is ways that culture can be consumed, produced, and shared, reduce the role of the market and encourage smaller and more local cultural enterprise.”

First of all: compared to 20 years ago we are drowning in movies, books, films, songs and cat videos.  While it may not necessarily be less expensive to produce that “first copy” of a novel, Pollack is correct in that there are virtually no barriers to the global distribution of that novel now. As a result – even under current copyright law- there is no “production of cultural goods” emergency!  This is simply a Green Party solution without a problem.

If the Green Party wants to fix a real problem they should examine why the middle class of the creative industries is disappearing.  Just look at what has happened to professional musicians in the US.    Normally the Green Party would reflexively side with these generally unionized professional cultural workers. Why not now?  What gives?  Why does their cultural fix include a fair use exemption for corporations like Google/YouTube? It seems odd.

Clearly the Green Party knows that their policies will eliminate a broad  professional class of artists.  Otherwise they wouldn’t propose the following:

a Citizen’s Income (see EC730), which will allow many more people to participate in cultural creation;”

This is puzzling.  Take away revenue from creators and then give it back through a government stipend? The only way this makes sense is they just don’t like kind of cultural goods that are currently being produced and want to gain control over the process.  Is that what this is really about? Defunding the pop stars and vast middle class of musicians  in hopes that some anti-capitalist pro-environmental indie rock and electronic dance music fills the void? And aren’t British youth  already producing anti-capitalist music?  Isn’t that a rite of passage of every British university student? The anti-capitalist phase?  I don’t know about you  but these new policies sound more like some sort of censorship scheme to me.  Think about it.   Who decides who gets this “Citizen’s Income” to work on pop music?  Your local Green Party council?  And if that’s the case would Compton California’s Green Party Council have funded “Straight out of Compton?  Would the Prestwich Green Party Council have funded The Fall? Doubtful.

Further if you still have a global mixed capitalist system wouldn’t giant multinational companies like Google and Amazon out-market the UK Green Party’s dole produced culture with their monopoly capitalist funded culture?  Surely the jackbooted dance floor stomp “All Hail Bezos and Schmidt” will have a much larger promotion budget than the folksy strains of  “I love composting” by the Aberystwyth Green Council’s Twee Three.

But let’s just say there is an emergency.  For the sake of argument let us accept the questionable Green Party premise that there is a shit ton more creativity to be unleashed and copyright is somehow standing in the way.

How the hell is my individual right to be compensated for the use of my work standing in the way of this?  How am I preventing some young musicians in Hull from starting their own band or indie label based upon the East Riding sound?   Is the problem that they want to cover one of my songs in a retro KLF style and I have a copyright on that composition?  They already have the right to cover that composition.  I can’t stop them. Why?  Copyright law in the US gives them a compulsory license (you have a similar process in the UK).   They just have to pay to me the very small songwriter royalty.  Is the problem they don’t want to pay the royalty?  Then they should make up their own songs.  They can even base their songs on the ideas from my original composition, for copyright only protects my unique expression not the ideas themselves.

And ladies and gentlemen, this is a perfect example of how copyright incentivizes the creation of new works, not prevents their creation as the Green Party seems to think.

Maybe the UK Green Party should stick to saving whales.

Attention Bands and Bloggers: Link to Your Local Indie Retailers and Be Good to Them When It’s NOT Record Store Day

#linklocalbuylocal!

Music Technology Policy

There’s an inclination on the part of bands and bloggers to use links to Amazon or Apple for fans to buy your records.  Here’s a thought:  Try linking to someone who gives a shit whether you suck air and who doesn’t spend tens of millions of dollars trying to fuck you in Washington?  Think that might be a better idea long term?  (And as we’re seeing play out in Canada, not just Washington, but Ottawa, London, Brussels and indeed around the world.)

I link it to Waterloo Records, my local indie record store which has a good online ordering operation.  I bet you have an indie record store, too.  Why don’t you link to them on your website?  When was the last time you did an in-store at Amazon?

And if you don’t have an indie store in your area, feel free to use Waterloo.  Texas wants you anyway.  But…

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World Watch:  Canadian Government Closes Big Tech’s Back Door Loophole

Music Technology Policy

Canadian Prime Minister Stephen Harper’s government has announced that Canada will expand the current 50 year copyright term for sound recordings in Canada to 70 years. This brings Canada into the 21st Century and in line with its global trading partners. Expect handwringing from Big Tech and the magisterium of the professoriate, some of which has already begun, complete with at least some manufactured evidence worthy of Pandora.

Harper Government Acts to Protect Canadians from the Copyright Term Shell Game

The way you play the copyright term game internationally is to sell knockoff CDs or vinyl versions of classic recordings at super-budget prices in the country with the shortest term as those records flow into the public domain. Fans are confused by these records being sold side by side with value added versions (such as digitally remastered, 5.1 mixes, etc.). There’s also a good chance that the same game…

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Why Digital Exec’s ARPU is Bad Math and also Bad Philosophy for Artists.

ARPU. Do you know what that is? It’s Average Revenue Per User. Not withstanding the insulting connotation of referring to fans as “users” this is just bad on a number of different levels.

Leaked Sony emails suggest that digital music executives confuse per-capita with ARPU. One of the items we’ve found cruising wikileaks has digital music execs explaining the digital landscape ARPU as follows:

$120 Streaming Subscription

$68 Downloads

$3 Ad-Supported Streaming

We’ll get into the fallacy of the $68 Downloads vs the $120 Streaming Subscriptions in a minute. But first, let’s just look at the fact the industry digital execs actually clocked ad-supported ARPU at $3 per user per year and did it anyway! Seriously? Really? Who thinks going from $68 to $3 is a good idea and then doubles down on trying to get sell in on it? Wow, just wow.

Ok, now back the $68 Downloads ARPU. The question that never seems to be qualified in these ARPU valuations is how many users exactly contribute to the revenue pool to end at up an average of $68 per user? The next question would be how many of those “average” users are paying significantly more than $68? Hell, how many are paying significantly more than $120 per year?

In a basic 80/20 model we would expect that 80% of the revenue would come from 20% of the consumers (er, um… “users”). This means the most valued “users” are now being artificially flattened DOWN to $120 per year.

Streaming Subscription fees as a representative of ARPU doesn’t work, because there are only TWO numbers that can be worked into the average, $120 and zero. So now you have the problem of trying to raise the causal user up to $120 per year while you’ve flattened down your best costumer (er, user). This is the crazy rational behind dropping streaming subscriptions down below $120… But wait… wouldn’t that just also artificially flatten the overall market even lower than the $120 ARPU? Yeah… you bet it would.

It’s truly astounding the lack of ability to use calculators and do simple math. We’ve pointed this out again and again. Even at 90 Million Paid Subscribers at $120 per year, that only generates $7.5b in industry revenue. Ninety Million Paying Subscribers. Just keep saying that over and over until it sinks in.

Subscriptions artificially flatten the market and require extremely high (and largely unrealistic) subscriber numbers because the actual number of “users” consuming music is probably at least double 90 million in the USA. That’s where an ARPU of $68 starts to make sense, somewhere around 110-155 million consumers, but most likely even higher. So, here’s the rub – who really believes that Spotify (or all subscriptions streaming services combined) are going to convert 10s of millions of casual consumers/users into $120 per year ARPU’s? They’re not and that’s why this model is screwed.

ARPUisBAD

For streaming to truly mature the industry needs to embrace tier based, value pricing, so that a truly dynamic and flexible ARPU can be restored. The one size fits all Streaming Subscription ARPU is a lie, and the math shows us why.

 

 

Leaked Sony Emails Suggest Digital Music Executives Confuse Per Capita Revenue with ARPU

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 UN prepares to airlift badly needed calculators and math textbooks to Sony digital executives.  Above a A Norwegian UN peacekeeping soldier reacts to leaked details of Sony digital executives confusing per capita revenue  with ARPU (annual revenue per user.)  Photo by Русский: Фото: Михаил Евстафьев English: Photo: Mikhail Evstafiev (Mikhail Evstafiev).

Are we really doing this again?   Seriously, is there a single digital music executive at a record label that can do basic math?  Reliable reports on the leaked Sony emails seem to suggest otherwise.

Did every single one of these folks fail the 6th grade word problems?

Let me explain this one more time. ARPU≠Per Capita Revenue

For instance in the year 2000 US recorded music purchases per capita were $71.  Now remember that per capita figure includes a lot of people who probably don’t buy music.  For instance infants, little old ladies and even (sorry but  it helps illustrate the point) the hearing impaired. Per capita means everyone in the country. It means…well per capita!!  

So when sony digital music executives start talking about ARPU (Annual Revenue Per User) on certain services  they are talking about a much much smaller subset of the population.  You  can not honestly talk about $120 Spotify APRU and  $71 dollar per capita annual revenue in the same sentence.  Yet it looks like they do.  I don’t know if this is sheer stupidity or if it’s part of some sort of digital snake oil scam.

To illustrate, look what would happen if you did it the other way and equated streaming services ARPU with per capita recorded revenue consumption.    If all streaming services combined somehow miraculously manage to get to 40 million paying subscribers (about level of adoption of streaming video) on the high side you get to $15 per capita.   (40 million x $120 a year/ 320 million us population).

You’re all fired.