Merchants Of Doubt in Silicon Valley : What Every Musician Needs to Know About Ad Funded Piracy

History repeats itself as once again we see public relations spin covering up for big business. This time Silicon Valley appropriates the “Tobacco Playback” in it’s war against musicians and creators to cast doubt on the destruction caused by online piracy.

What follows is a true story.

For the uninitiated Merchants of Doubt is a 2010 book that explores the tactics and strategies of Big Tobacco that were used for the “deliberate obfuscation of the issues which had an influence on public opinion and policy-making.”

There are few things we can think of in the history of the United States that was more controversial and embattled than the war over tobacco policy and public health. In it’s conclusion, this long history resulted in the now non-controversial understanding of the simple truth that smoking cigarettes is a leading cause of various cancers. This clip from Mad Men is a subtle look back at that time.

Today, musicians and creators are faced with a similar situation. For over a decade, the decline of recording revenues has been the subject of such a controversy as spun by Silicon Valley interests in the name of “internet freedom”. However in reality the battle is really over “internet freedom to profit for advertising revenues” while exploiting the work of musicians and creators without compensation.

These illegally operating and infringing businesses are profiting from the illegal distribution of music online without having to pay for the cost of goods (the music). As we’ve detailed here these businesses are paid by internet ad networks and ad exchanges who are clients of major brands and Fortune 500 companies.

The creation of the so called “Tobacco Playbook” is credited to John Hill, the founder of the public relations giant Hill & Knowlton. In 1953 to counter early reports of the harm by cigarettes the firm created a full page statement titled “A Frank Statement to Cigarette Smokers” which began a long history of disinformation and manipulation to deceive the public and policy makers about the dangers of smoking and to also increase tobacco profits.

Among the claims made in “A Frank Statement to Cigarette Smokers” are these:

Although conducted by doctors of professional standing, these experiments are not regarded as conclusive in the field of cancer research. However, we do not believe that any serious medical research, even though its results are inconclusive should be disregarded or lightly dismissed.

     At the same time, we feel it is in the public interest to call attention to the fact that eminent doctors and research scientists have publicly questioned the claimed significance of these experiments.

     Distinguished authorities point out:

  1. That medical research of recent years indicates many possible causes of lung cancer.
  2. That there is no agreement among the authorities regarding what the cause is.
  3. That there is no proof that cigarette smoking is one of the causes.
  4. That statistics purporting to link cigarette smoking with the disease could apply with equal force to any one of many other aspects of modern life. Indeed the validity of the statistics themselves is questioned by numerous scientists.

     We accept an interest in people’s heath as a basic responsibility, paramount to every other consideration in our business.

     We believe the products we make are not injurious to health.

     We always have and always will cooperate closely with those whose task it is to safeguard the public health.

Why does reading the above give us PTSD flashbacks to the Interactive Advertising Bureau (IAB) Anti-Piracy “Best Practices Memo” from earlier this summer?

The chief tactic employed is not only to cast doubt upon what is the first and most obvious cause of the issue being discussed but also to give the appearance of being agreeable to the contrary. Let’s see if any of this sounds familiar as espoused by Silicon Valley’s free-culture advocates as possible reasons for the decade plus decline in sound recording revenues.

Distinguished academics point out:

  1. That research and studies of recent years indicate many possible causes of declining recording revenues.
  2. That there is no agreement among the academics regarding what the cause is.
  3. That there is no proof that filesharing and internet piracy is one of the causes.
  4. That statistics purporting to link declining recording revenues with content piracy could apply with equal force to any one of many other aspects of modern life. Indeed the validity of the statistics themselves is questioned by numerous academics and researchers.

The effects of piracy have been studied thoroughly and the conclusions are pretty clear and common sense. Illegally free without consequence has a negative impact on the same product available legally for sale.

Michael Smith and Rahul Telang wrote Assessing the Academic Literature Regarding the Impact of Media Piracy on Sales, which looked at empirical (rather than theoretical) studies in academic (particularly peer-reviewed) journals and found that the vast majority of studies found evidence that piracy harms media sales.

Link: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2132153

A similar study, The Economics of Music File Sharing – A Literature Overview, by Peter Tschmuck, which was cited by the Swiss government in an official report, examined 22 independent, academic studies (i.e., not industry-funded) focused on music sales and found that 14 came to the conclusion that unauthorized downloads have a “negative or even highly negative” impact on recorded music sales.

Link: http://musikwirtschaftsforschung.files.wordpress.com/2010/06/tschmuck-the-economics-of-file-sharing-end.doc

Not to be outdone by the merchants of doubt there are also court documented shills that expand upon the Big Tobacco Playbook by employing logical fallacies and confusing the constitutional rights granted to individuals as a threat to freedom of speech.

The bottom line for musicians is to recognize the truth that there is a lot of money being made in the distribution of music on the internet. Unfortunately that money is not going to creators, it is going to illegally operating and infringing businesses supported by black box advertising networks. But don’t take our word for it, here’s a report from Digiday an Ad Tech trade publication owned by parent company The Economist.

Why is Ad Tech Still Funding Piracy?

According to AppNexus CEO Brian O’Kelley, it’s an easy problem to fix, but ad companies are attracted by the revenue torrent sites can generate for them. Kelley said his company refuses to serve ads to torrent sites and other sites facilitating the distribution of pirated content. It’s easy to do technically, he said, but others refuse to do it.

“We want everyone to technically stop their customers from advertising on these sites, but there’s a financial incentive to keep doing so,” he said. “Companies that aren’t taking a stand against this are making a lot of money.”

Somewhere, someone may still believe that cigarettes are healthy and do not cause cancer.  And somewhere, someone may still believe that the cause of the destruction to the careers of musicians and creators is not internet piracy.

Pirates Won’t Stop Us from Creating, They’ll Stop Us from Sharing…

We recently reblogged a link to Trent Reznor’s interview in Spin Magazine where he stated his current feelings over the value of music as a creator. Below is a comment in response to that article that we felt deserved it’s own post.

Music, like a certain other activity, is usually done for love or money. A lot of pirates nod enthusiastically at this right up until they realize that, if there’s no money in it and a musician has to do it for love … that if I don’t love you, you don’t get any. :-)

They keep missing this part. Yes, musicians will MAKE music no matter what. But we don’t have to share it with anyone other than the people we want to share it with. In order to get into that room, now you need to persuade me you should be there. Before, you could throw money at me, and I’d let you in. Now that there’s no money in it, I need another reason. Be an asshole, and you don’t get in.

Even the threat of not making money will only work on artists for so long. They won’t just hang around and starve. Eventually, they will read the writing on the wall, bow to reality, and simply get other jobs and decouple their artistic output from their financial input. And then they really don’t have to share our music with just anyone.

The pirate kids really aren’t following this thing to its logical conclusion:

1) Decouple money from art. Then,
2) Artists get day jobs and keep them. Hence,
3) We don’t need to share our art with anyone if we don’t want to.

So make me want to.

Oh … and without handing me money, which would have been the simplest way to accomplish that, but that’s not working anymore, is it?

Neither will acting like a tantrum-throwing, entitled brat. :-)

For those in doubt, we can reference Beck who first made available his album “Song Reader” as sheet music, encouraging people to supply their own labor to hear his new songs.

Five Things Congress Could Do for Music Creators That Wouldn’t Cost the Taxpayer a Dime Part 3: Create an Audit Right for Songwriters

Music Technology Policy

[This post originally appeared in the Huffington Post]

Once a song is distributed to the public with the permission of the owner of the copyright in the song, the U.S. Copyright Act requires songwriters to license songs for reproduction and distribution under a “compulsory license.” This license is typically called a “mechanical license” because it only covers the “mechanical reproduction” of the song and does not, for example, include the right to use the song in a YouTube video or a motion picture, create a mashup or reprint the lyrics of the song.

When the Congress first developed the compulsory mechanical license in 1909, the concern was that “the right to make mechanical reproductions of musical works might become a monopoly controlled by a single company.” This monopoly never came to pass, and given the fragmentation in music licensing in the current environment, is unlikely to ever come about.

View original post 1,115 more words

The “Chilling Effects” of YouTube’s Internet Censorship and Lack of Transparency

We’ve been watching with interest a story developing over at Digital Music News. The site ran a guest editorial by Jeff Price promoting his new YouTube Content Management System Collections Service, Audiam.

It’s interesting to note how Price targets distribution companies as the black hats but does not criticize YouTube for their less than stellar “Openess and Transparency” with artists. East Bay Ray of The Dead Kennedys spoke to NPR about his frustrations with Google.

YouTube Shares Ad Revenue With Musicians, But Does It Add Up?

“Holiday in Cambodia” by the punk band Dead Kennedys has been streamed on YouTube over 2.5 million times. Guitarist Raymond Pepperell — also known as East Bay Ray — says, overall, Dead Kennedys videos have been watched about 14 million times. But the band has only seen a few hundred dollars.

“I don’t know — and no one I know knows — how YouTube calculates the money”

It’s easy to see why so many readers took exception to Price’s understanding of how YouTube monetization works (or actually doesn’t). One of those people wrote a response to Price’s editorial, Emmanuel Zunz of ONErpm.

Why Jeff Price Is Horribly Misinformed About YouTube Monetization…

If I understand Audiam’s business model correctly (I have tested the service), it’s a pure Content ID play.  So here is my first point: Audiam states that they pay artists 100% of the revenues they collect for them from their own channel.  But by generating UGC claims on their channels that pay out at 35% instead of the Standard 55% an artist can get on their own, they are actually reducing the amount of money a musician can make through a Standard direct deal with YouTube.

What follows is the real story about the lack of transparency and openess that Google claims is essential to a “free and open” internet. You know, the kind of “free and open” internet where you make the music, movies, books, photos, etc and Google is “free and open” to monetize it without restriction. “Permissionless Innovation” yo!

So apparently when Zunz was being transparent and open (um, without permission) about Google/YouTube payments and policies in his response to Price he got a little to close to home in revealing Google family secrets. The result was a panicked Zunz contacting Digital Music News to remove, retract and/or otherwise redact the information that Zunz had made public. Oooopsies…

YouTube Demands the Removal of a Digital Music News Guest Post…

According to ONErpm, YouTube has demanded that the entire guest post – here – be ripped down, which would obliterate nearly 100 comments and the knowledgebase that comes with that (not to mention the detailed information in the post itself).

But the story doesn’t end there. Zunz had already written a second a highly detailed post for Digital Music News detailing how YouTube monetization actually works! Unfortunately that “Open and Transparent” post is not going to see the light of day in educating musicians about the actual mechanics, percentages and payments by YouTube.

YouTube Successfully Intimidates a DMN Guest Contributor…

It’s called “the chilling effect”…

Despite serious threats, YouTube has been unsuccessful at removing an earlier article on Digital Music News about confusing royalty payouts and specifics.  But what they have been successful at is preventing the next one: a 4,000+ word, highly-detailed essay on YouTube best practices and royalties, from a company highly-specialized in YouTube distribution.

The company simply got spooked, and asked that we not print the piece for fear of having their MCN status revoked by YouTube.  So here’s what artists, labels, publishers, startups, and the industry is missing as a result.

So the next time someone wants to talk about the benefits of a transparent, free and open internet based in permissionless innovation it might be worth while to send them this post. After all wasn’t it Google Chairman Eric Schmidt who said, “If You Have Something You Don’t Want Anyone To Know, Maybe You Shouldn’t Be Doing It“?

So when Google protects it’s interests it’s “business” but when musicians protect their rights it’s “censorship”.

Where are the defenders of internet freedom when you need them? The crusaders against internet censorship are silent…

Trent Reznor speaks on value of music: “It costs 10 bucks, or go **** yourself. | SPIN

“I know that what we’re doing flies in the face of the Kickstarter Amanda-Palmer-Start-a-Revolution thing, which is fine for her, but I’m not super-comfortable with the idea of Ziggy Stardust shaking his cup for scraps. I’m not saying offering things for free or pay-what-you-can is wrong. I’m saying my personal feeling is that my album’s not a dime. It’s not a buck. I made it as well as I could, and it costs 10 bucks, or go fuck yourself.”

READ THE FULL INTERVIEW AT SPIN:
http://www.spin.com/featured/trent-reznor-upward-spiral-nine-inch-nails-spin-cover-september-2013/

PRE ORDER THE ALBUM ON ITUNES NOW:
https://itunes.apple.com/us/album/hesitation-marks/id655150305

University Of Georgia Music Business “Undesirable”Lyric Website Study

Lyric searches drive huge traffic on the web.  They may not be quite as popular as “Lady Gaga Download”  and other similar searches but they are right up there.

There are lots of licensed sites and as usual lots of what appears to be unlicensed sites.  Almost all of these sites have major brand advertising.

Many of you may not realize this but I’m also on the faculty of The University of Georgia.  I teach in the Music Business Program.  I spent considerable time this summer studying these sites as part of my official research duties. It’s part of a bigger project whereby I’m studying and cataloguing many of the “lesser known” kinds of copyright infringing websites.

Here is a short paper listing this months top 50 “undesirable” lyric websites as well as my methodology and further comments. It is my hope that brands and advertising agencies will consult this list when planning advertising campaigns. Suggestions are truly welcome.

You may download/view  it here:

UGA Music Business Undesirable Lyric Website List*

If you don’t want to download it and read the whole thing (I’m talking to you generation tl/dr) here are the Top 50 “undesirable” lyric websites.  (If for some reason you believe your website was mistakenly included in the list follow instructions in the paper. )

(Ranked by search result rankings.)

Top 50 Undesirable Lyric Websites.

(This list has been corrected.  7 sites from original list turned out to have been licensed. Thanks to Andrew Stess at LyricsFind for doing deep dive into this over a holiday weekend).

Rank Website Final score Major brands

1

http://www.songlyrics.com

7.445

yes

2

http://www.lyricsmania.com

6.18

yes

3

http://www.stlyrics.com

6.055

yes

4

http://www.lyricsreg.com

4.485

yes

5

http://www.lyricstime.com

4.435

yes

6

http://www.lyricsdepot.com

4.395

yes

7

http://www.elyricsworld.com

4.33

yes

8

http://www.songonlyrics.com

4.285

yes

9

http://www.lyricstranslate.com

4.13

yes

10

http://www.karaoke-lyrics.net

3.89

yes

11

http://www.lyrics.astraweb.com

3.325

yes

12

http://www.kovideo.net

3.13

yes

13

http://www.oldielyrics.com

2.93

yes

14

http://www.poemhunter.com

2.825

yes

15

http://www.maxilyrics.com

2.675

no

16

http://www.lyricsboy.com

2.54

yes

17

http://www.anysonglyrics.com

2.27

yes

18

http://www.lyricsmansion.com

2.185

yes

19

http://www.absolutelyrics.com

2.11

yes

20

http://www.videokeman.com

2.105

no

21

http://www.digitaldreamdoor.com

2.055

yes

22

http://www.musicloversgroup.com

1.94

no

23

http://www.urbanlyrics.com

1.915

yes

24

http://www.asklyrics.com

1.895

yes

25

http://www.bmusiclyrics.com

1.885

yes

26

http://www.nomorelyrics.net

1.865

yes

27

http://www.plyrics.com

1.855

yes

28

http://www.lyricsforsong.net

1.805

yes

29

http://www.hotnewsonglyrics.co

1.795

yes

30

http://www.hitslyrics.com

1.73

yes

31

http://www.sasslantis.ee

1.705

yes

32

http://www.lyricspinas.com

1.68

no

33

http://www.cowboylyrics.com

1.655

yes

34

http://www.guitaretab.com

1.62

yes

35

http://www.songtextemania.com

1.54

yes

36

http://www.lyrics59.com

1.5

yes

37

http://www.golyr.de

1.495

yes

38

http://www.lyricsera.com

1.49

yes

39

http://www.justsomelyrics.com

1.47

yes

40

http://www.allthelyrics.com

1.44

yes

41

http://www.6lyrics.com

1.365

yes

42

http://www.lyricsfeast.com

1.33

no

43

http://www.hiplyrics.com

1.32

yes

44

http://www.lyricsprint.com

1.265

yes

45

http://www.paroles-musique.com

1.25

yes

46

http://www.muzikum.eu

1.235

no

47

http://www.alivelyrics.com

1.13

yes

48

http://www.lyrster.com

1.13

yes

49

http://www.guitarparty.com

1.115

yes

50

http://www.azchords.com

1.095

yes

*songmeanings.Net was mistakenly included in first list.  This was a typo we compared it to songmeanings.com. 

** Over the weekend we were notified that these sites are also licensed:

http://www.musicsonglyrics.com

http://www.songmeanings.net

http://www.lyriczz.com

http://www.lyricsondemand.com

http://www.tabs.ultimate-guitar.com

http://www.lyricsg.com

http://www.songfacts.com

May I humbly suggest that Lyric sites begin putting a notice on their sites clearly explaining which organizations and publishing companies have licensed them.   At least until we manage to create a master list.

*update 10/22/2013  new list: UGA Music Business Undesirable Lyric Website List Oct 22nd 2013

Google and YouTube want “Transparency and Openess” except when it applies to Google and YouTube!

Censorship anyone? Hmmmmm…

Because information wants to be free, as long as it’s your information. Which brings us to this: YouTube is now threatening to completely sever its relationship with digital distributor ONErpm, thanks to some ‘over-sharing’ of information in a recent guest post on Digital Music News. According to ONErpm founder Emmanuel Zunz, YouTube is unhappy that certain payout details and percentages were disclosed, with a complete blacklisting being threatened.

According to ONErpm, YouTube has demanded that the entire guest post – here – be ripped down, which would obliterate nearly 100 comments and the knowledgebase that comes with that (not to mention the detailed information in the post itself).

“Yt is threatening to cancel our agreement,” Zunz emailed. “It’s a very serious issue for us.”

READ THE FULL STORY HERE AT DIGITAL MUSIC NEWS:
YouTube Demands the Removal of a Digital Music News Guest Post…

The idea that Google is an open and transparent company is simply laughable to anyone who has actually dealt with the company and given Google’s monopoly over video search, when it makes threats about cutting someone off from YouTube, those threats are amplified with what is called a “force multiplier” in some circles (or an “A-hole multiplier” in others).  An amplification that varies directly with the effectiveness of YouTube’s monopoly over online search, a monopoly perfected for years by Google subsidizing YouTube with profits from its other monopoly businesses.

READ THE FULL STORY AT MUSIC TECH POLICY:
More Stupid New Boss Tricks: Google’s YouTube Artist Relations Debacle

RELATED:
So Much For Innovation, YouTuber’s Meet The New Boss…

21st Century Piracy: The Demise of the Music Industry | THE WIP

EDM artist Victoria Aitken speaks out.

The Internet pirates have made me, and thousands of other musicians, walk the plank. We now have to swim in shark-infested waters where the big fish gobble up our dues and the pirates laugh their way to the bank.

I believe this basic injustice must be remedied – Internet pirates are white-collar criminals. They should pay the royalties they have stolen or be answerable to the law, like looters, burglars, and fraudsters.

READ THE FULL STORY AT THE WIP:
http://thewip.net/contributors/2013/08/music_industry_killed_by_pirat.html

RELATED:
Google, Advertising, Money and Piracy. A History of Wrongdoing Exposed.

Why Copyright is a Right and Fair Use is a Privilege | Law Theories

In this post, I’ll explain why copyright opponents have it exactly backwards when they claim that copyright is a privilege and fair use is a right. At the outset, I note that these terms can have various, nontechnical meanings that possibly overlap. For example, Black’s Law Dictionary defines “right” to mean, inter alia, a “privilege,” and it defines “privilege” to mean, inter alia, a “right.”2 But copyright opponents are not using these terms interchangeably; they are using them in contradistinction to each other. In other words, they are saying that right and privilege are mutually exclusive terms. It’s this technical usage of these terms that I’ll address.

READ THE FULL STORY AT LAW THEORIES:
Why Copyright is a Right and Fair Use is a Privilege

How Will Musicians Survive In the Spotify Era? | The New Yorker

Sasha Frere-Jones, Dave Allen, Jace Clayton, and Damon Krukowski discuss how (mildly) popular musicians are going to survive.

Last month, Damon Krukowski and I discussed Spotify, the public exit of Nigel Godrich and Thom Yorke from that platform, and the various challenges facing musicians who do or don’t want to participate in similar streaming services. Toward the end of the discussion, Damon and I both hinted at the freedom of going free, the moments when giving your music away is more profitable—in the long run—than letting another company sell it inefficiently and unprofitably. Damon expanded on his position in a subsequent article for Pitchfork, but neither of us was advocating that musicians play and record for free, in all scenarios, all the time: nothing of the sort. So before I hand this discussion over to a new panel, one clarification.

My band, Ui, released a clutch of records through Southern Records. These albums are no longer available on Spotify because, according to Southern, the costs of administrating the relationship were not covered by the microscopic amount of revenue generated. I believed them then, and believe them even more now.

READ THE FULL STORY:
http://www.newyorker.com/online/blogs/sashafrerejones/2013/08/how-will-musicians-survive-in-the-spotify-era.html