Thank You @irvingazoff!

“These people, when they start out — whether it’s Facebook, Snapchat, TikTok, whatever — they resist paying for music until you go beat the f— out of them. And then of course, none of them pay fair market value and they get away with it. Your company’s worth $30 billion and you can’t spend 20 grand for a song that becomes a phenomenon on your channel? Even when they pay, artists don’t get enough. Writers don’t get enough

Thank God for Irving Azoff! (Although how about $1 trillion?) In a must-read profile interview with the LA Times, The Great One lays down the only strategy that works with Big Tech–not unity dinners, not lobbyist sell-outs, not sucking up to monopolists like Daniel Ek. And you know why he’s right? Because they do it to us and weakness in the face of bullies is not an option.

Yes, Dr. Azoff has identified the Tech Gene that turns entrepreneurship into a kleptocracy faster than you can say disrupt. But what should we expect in the coming years given the Tech Gene pandemic? The Big Tech kleptocracy goes way beyond stealing from creators.

Moonalice band member and venture capital investor Roger McNamee recently wrote a good description of policy expectations in Wired:

One of the policy areas that demands a new approach is technology. New technologies like facial recognition and artificial intelligence have been plagued by racial and gender bias, with particular harm in areas like law enforcement, job hiring, and mortgage applications. Internet platforms like Facebook, YouTube, Instagram, and Twitter have amplified hate speech, disinformation, and conspiracy theories, undermining our politics, our pandemic response, and the safety of our citizens. More than 1,000 marketers have joined the #StopHateForProfit campaign, agreeing to pause their advertising on Facebook for a month or more to protest the amplification of hate. In addition, many companies in Silicon Valley have been accused of racial and gender bias relative to employees, most recently Facebook, where an employee and two applicants filed a complaint of alleged racial bias. For all its past contributions to our nation, Silicon Valley now has issues with culture, business models, and business practices that require government intervention.

Imagine my disappointment last week when The New York Times reported that President Obama had suggested that you work with two members of the Silicon Valley establishment, former Google CEO Eric Schmidt and LinkedIn founder Reid Hoffman. I know both men well. They are brilliant and very successful. Their money and expertise may be valuable to your campaign, but I hope you will not turn to them for policy guidance. They were architects of the culture and values that produced the problems I described above.

I hope you will take to heart the words of Albert Einstein, who said, “We cannot solve our problems with the same thinking we used when we created them.” This is particularly true in tech.

And the New York times story said:

Mr. Biden’s campaign and transition team include advisers with ties to tech companies and other industries that worry liberals. Avril Haines, a former Obama national security and intelligenceofficial who is helping to lead Mr. Biden’s transition team, was a consultant for the data-mining company Palantir and WestExec Advisors, a firm that represented a major tech company it hasn’t identified.

A WestExec co-founder and Obama State Department official, Antony J. Blinken, is running the Biden campaign’s foreign policy operation. WestExec has worked with the philanthropy started by Eric Schmidt, the former Google chairman, and with Google’s in-house incubation unit, Jigsaw. But Mr. Blinken and Ms. Haines did not participate in that work, according to the Biden campaign, which said both advisers stepped away from WestExec this month.

Cynthia C. Hogan, a former White House lawyer for Mr. Biden who is helping to lead his vice-presidential selection process, was a lobbyist and government affairs executive at Apple. She tendered her resignation from the company in April, according to the Biden campaign.

If you’ve never heard about these advisory network, don’t be surprised. As the Times tells us:

list of rules provided to members of the policy groups, a copy of which was obtained by The Times, instructs participants not to disclose their participation “on social media such as Facebook or LinkedIn or in your professional bio.” It also warns them not to discuss or distribute names of other committee members, contents of committee conversations, emails from the committee or to talk to the news media.

“Simply put, do not talk to the press,” the document reads, emphasizing “do not talk to the press” in boldface.

Biden Press

And what is Eric Schmidt doing?  According to Recode:

Google Cypress

Yes, to paraphrase former government official Susan Crawford, it looks like “Uncle Sugar” Eric is trying to “geek around the nation state.” Why? It’s very odd but it’s exactly the kind of thing that Roger McNamee warned of. As Recode tells us, it could be a COVID play to allow Uncle Sugar to travel to raves in Europe more easily (as Cyprus citizenship gets him an EU passport), but:

[I]t is still uncommon to see Americans apply to the Cyprus program, according to published data and citizenship advisers who work with the country. The program is far more popular with oligarchs from the former Soviet Union and the Middle East, and it has become mired in so many scandals that the Cypriot government announced last month that it was to be shut down.

But not for Uncle Sugar. So there goes the confirmation hearing. Why did Uncle leave Google again? We never got an answer to that or why his NY pad is soundproofed–from the inside.

Yes, they’re psycho kleptocrats just like Irving says, and it looks like they’re back. But thankfully we have Irving Azoff and we’re not waiting for the cavalry to save us–which they never have.

Is The MMF Shilling for YouTube (Again)?

Irving Azoff recently posted an open letter to YouTube on a tech industry news site where he laid out the arguments against YouTube–we think very effectively.  He echoed many of our complaints against YouTube, particularly about how YouTube uses the “notice and shakedown” system of DMCA abuse in the form of “whack a mole” for Google’s own profit.

Of course, it’s not really correct to call it “whack a mole” because the mole never gets whacked. Google’s interpretation of the DMCA has effectively created yet another government mandated compulsory license, this time a compulsory license that is royalty free or more accurately  redistributive because it moves value from the artist to Google.  Add that to the vicious attacks on Prince by Google surrogate EFF in the ridiculous decision in the Lenz case and you’ve got a real recipe for disaster.

You would think that at least some of Irving’s fellow managers in the MMF would have rallied around him, but in the case of the Music Managers Forum in the UK, that’s not what’s happening at all.  As we’ve long suspected, the MMF (at least in the UK) is busily shilling for Google.

Here’s an email that MMF president John Webster blasted out to MMF members:

From: Fiona McGugan <fiona@themmf.net>
Reply-To: fiona@themmf.net” <fiona@themmf.net>
Date: Saturday, May 14, 2016 at 4:19 AM

Subject: ICYMI 85: Life at a Major, Start Ups, YouTube
Dear Manager,
 
Very instructive view of working at a major label:
 
http://pigeonsandplanes.com/2016/04/what-i-learned-from-3-years-of-working-for-major-labels/s/615114/
 
A digital veteran questions the role of the music industry in the demise of music based tech start-ups:
 
https://medium.com/@pakman/the-music-industry-buried-more-than-150-startups-now-they-are-left-to-dance-with-the-giants-ecfd0b20243e#.kf5m9m5c0
 
A creator defends You Tube:
 
http://www.recode.net/2016/5/10/11645760/youtube-hank-green-response-irving-azoff-artist-rights
 
And the Featured Artists Coalition has launched a survey about YouTube. Please take three minutes to answer on behalf of your artists;

https://fac1.typeform.com/to/DO8VQq


Best Regards

Jon Webster
President, MMF

About: The MMF UK is the largest professional community of artist management in the world. We exist to provide support, training, representation and opportunity for Managers. We want a transparent music business that respects the needs and aspirations of the artist and their fans. If you wish to unsubscribe, please do so by return email.

This email is quite incredible because it cites to “A creator defends YouTube” but never mentions Irving’s open letter that engenders that defense.  It only mentions the attack on Irving’s letter from a YouTuber who for whatever reason was defending Google against Irving.  If they want to give both sides, then fine, but they didn’t.  They only gave Google’s side.

Not surprising considering the email was from Jon Webster, but you would think that even he would be more careful about being balanced.  This is the Music Manager‘s Forum, right? Not the Google Managers Forum?  Wouldn’t it have made more sense to put a link to Irving’s open letter and then give the response rather than just giving the response?

Mystifying.  We’re sure that both Webster and the YouTuber would deny that they are in Google’s pocket which could be true.  They could be “useful idiots”.

If you read both Irving’s open letter and that response from the YouTuber, you’ll notice the response never brings up a really important point that Irving emphasized–YouTube’s utter failure at accounting transparency for the meager royalties it does pay after you cut through all the “DMCA license” and “fair use” claptrap.

You say you want transparency, and I agree that labels and publishers have not traditionally been the best at that. Two wrongs don’t make a right. You need to be transparent, too. Be transparent about your ability to keep illegal music off your platform.  Be transparent about your ability to keep your own content behind a paid wall.

Be transparent about your revenue and, when paying artists, include all the revenue that is generated by music including advertising on YouTube’s home page. If you do this, I pledge to you that I will pressure the labels and publishers to pass on that transparency and increased revenue to the artists.

We would have thought that Jon Webster would be rallying the troops behind Irving on the transparency issue when the shoe is on the other foot.  But Webster appears to have no interest whatsoever in criticizing Google about anything from his mealy mouthed defense of Google’s DMCA practices to this indirect slam of Irving Azoff standing up for his artists and our industry.

Not only is Webster out to lunch again when it comes to Google, he doesn’t even address Irving’s rather generous offer to actually help Google.  That is a major offer from a major manager who could definitely make a difference.  Google, of course, has ignored this generous offer.  Why?  Probably because it is conditioned on Google being transparent about their own revenues.  If they want to pay artists a share of advertising revenue, then Google should be transparent about how that share is calculated and where the money comes from.

They should also stop playing games with ContentID and doing things like putting speed controls in their YouTube viewer to make it easier to pitch bend around ContentID in the first place.

It makes you wonder whose side the MMF is on–if you haven’t made your mind up already.  The unity in the music industry against Google has gelled in a way that we haven’t ever seen before, and that’s what makes Google really nervous.  That’s why they trot out the YouTube lottery winners (many of whom make the real money from distasteful brand integration fees or product placements, not YouTube royalties), that’s why they try to tell us that music isn’t an important part of YouTube’s revenues (so why bother auditing), and that may very well be why they use the MMF to push their agenda.

As Irving said:

The root of the problem here is YouTube: You have built a business that works really well for you and for Google, but it doesn’t work well for artists. If you think it is just the labels and publishers who are complaining, you are wrong. The music community is traditionally a very fractured one, but on this we are united.

And just in case they haven’t figured this part out yet, we’re complaining, too.  We know where Irving is coming from, but Webster needs to decide which side he is on instead of standing shoulder to shoulder with Google and its surrogates.