If Streaming is the “Solution” to Piracy, What Happens When Piracy is Streaming? Rot Oh… #sxsw

A big talking point of streaming, particularly of the Spotify variety has been that streaming is a solution to piracy, and that “access over ownership” models are the future.

Well… ok… but that assumes that piracy (of the corporately sanctioned, ad funded variety) remains a download business, while consumers migrate to the easier more accessible (free tiered, ad funded) music streaming models.

We’re told that the ad-supported free tier is the only way to attract consumers from piracy to legality. To be clear we’re not opposed to free trial periods. Free trials of 30 days, maybe even 60 days should give the consumer the ability to fully experience the value a streaming service offers. We just don’t see how the economics of ad-supported free streaming can create a sustainable revenue model for musicians and songwriters.

But here’s the bigger question. What happens when the pirates migrate to streaming over storing? Now we’re back to square one. A decade ago iTunes and later Amazon provided an legal solution to piracy that was superior in every way except one, price.

Why would anyone think that streaming would combat piracy any better than transactional downloads? Well, for the same reason piracy is, was and remains the primary source of music consumption, price. So the conversation and controversy over streaming is not one about the method of distribution, or technology. The conversation is the same as it has been for a over a decade, price.

Essentially Spotify appears to be designed to model ad-funded piracy whereby the company who can capture the largest market share would have ability to legally devalue music by delivering it to consumers for free. This math just doesn’t work. We can’t even see where the math on paid subscriptions will ever get to scale or revenue at a price point of $9.99 a month per subscriber.

So the inevitable question becomes if streaming is the solution to piracy, what happens when piracy is streaming? There are already multiple applications that are available or in development that reportedly enable users to stream music directly from BitTorrent as opposed to the need to download files to a local hard drive.

So explain to us again exactly how streaming is a solution to essentially the same service? Oh, they both need to compete on the same price point, which is free. Well, guess what, ad-supported free distribution of music is not sustainable.

YouTube is the largest free ad-supported free streaming distribution platform and it can not create the type of revenue required for the sustainability of the recorded music business. If we believe what they say, YouTube isn’t even a profitable business for Google!

So here’s the bottom line. Spotify, YouTube, Pandora and other ad-supported free streaming services are a side show to take the conversation away from the core problem, piracy. Internet piracy is big business and these side shows distract the conversation away from the fundamental truth of our economic reality… Free doesn’t pay. It’s just common sense and it’s just math…

 

Spotify Doesn’t Kill Music Sales like Smoking Doesn’t Cause Cancer…

 

BUT SPOTIFY IS PAYING 70% OF GROSS TO ARTISTS, ISN’T THAT FAIR? NO, AND HERE’S WHY…

 

Apple Announces Itunes One Dollar Albums and Ten Cent Song Downloads | Sillycon Daily News

 

 

 

 

 

 

 

 

The Problem With Steve Albini | AdLand

Just last year, during a Reddit AMA, Albini had this to say in a response to a person asking about music piracy and whether or not it hurts him economically.

I reject the term “piracy.” It’s people listening to music and sharing it with other people, and it’s good for musicians because it widens the audience for music. The record industry doesn’t like trading music because they see it as lost sales, but that’s nonsense. Sales have declined because physical discs are no longer the distribution medium for mass-appeal pop music, and expecting people to treat files as physical objects to be inventoried and bought individually is absurd.

Quite simplistic, as we all know not every musician wants their music being shared for free, in exchange for exposure. Also quite simplistic as google happily places ads on such infringing sites, making it tons of money. Keep it in mind before you put up a straw man argument, google did not create the sites, so they can’t hide behind all the hard work it took to build such sites. It merely placed ads on it, with a nice 32% share of the profits to boot.

READ THE FULL POST AT ADLAND:
http://adland.tv/adnews/problem-steve-albini/451760552

The Hypocrisy Of BitTorrent Knows No Bounds… Matt Mason Speaks…

BitTorrent’s Matt Mason let this one loose…

““We’re not interested in streaming for the sake of lining the pockets of a few people at major labels. We’re interested in helping artists make money from their work in the long term… I’m not trying to bash the people at the labels, but it does seem like the senior executives at the majors have said ‘we give up, let’s just make some money on the Spotify IPO, then go home and let the next generation sort it out’.”

You’re kidding right? We can’t make this up. As if BitTorrent has done anything other than destroy the lives of creators to have a self empowered right to make their own choices with their own work… So in your mind Matt, BitTorrent are the good guys and Spotify are the bad guys?

What percentage of music is Spotify distributing illegally? What percentage of music on Spotify are artist not getting paid on? Ok, now ask the same questions of BitTorrent.  Research finds that 99%+ of files distrbuted via BitTorrent are infringing (see the links below).

Wow, just wow.

And there’s this line from Matt’s interview with the Guardian UK:

“We’re a technology company, we’re really good at moving files. We’re not so great at being a label, a film studio or a book publisher.”

We know Matt because being a label, a film studio or a book publisher would mean you would actually pay the creators for the work you are distributing and investing in developing their careers through financial advances, marketing, promotion, pr, and other resources. Obviously things BitTorrent is loath to do for artists.

But let’s ask, how much money has BitTorrent invested into developing artists and helping them “make money from their work in the long term”… ah, that would be zero.

READ THE FULL POST AT MUSIC ALLY:
http://musically.com/2014/09/29/bittorrent-thom-yorke-spotify-u2/

RELATED:

Record Labels Invest $4.5 Billion Annually In Artists… Pirates, $0… Any Questions?

“Options, not rules”: BitTorrent Profits from Piracy By Serving Ads To UTorrent Client

We’re All Waiting, BitTorrent

Just a Word About Thom Yorke and Bit-Torrent…

“Fifteen years of utter bollocks”: how a generation’s freeloading has starved creativity | New Statesman

Arguments for digital piracy are drivel – it’s high time we steered away from this cultural cliff, argues author Chris Ruen.

Piracy may feel like victimless “free culture” to the user, but they are in fact participating in a digital black market. It’s not about information wanting to be free, but rather it’s about exploitative black marketeers and willfully blind tech companies wanting to get rich. They are simply capitalising on loopholes in the regulatory framework. In this sense, mass digital piracy is a symptom of underdevelopment. It’s the Internet Third World, with outdoor markets hawking counterfeit goods and purveyors bribing the local cops to look the other way.

Tech companies will go on skimming profits off the top of this black market until enlightened governments cooperate to squeeze out these illicit profiteers in an effective and transparent manner. As Google’s own Chief Economist Hal Varian has written, “all that is required is the political will to enforce intellectual property rights”.

READ THE FULL STORY AT THE NEW STATESMAN:
http://www.newstatesman.com/culture/2014/07/fifteen-years-utter-bollocks-how-generation-s-freeloading-has-starved-creativity

File sharing is alive and well, to the tune of 300 million users a month | GigOm

Surprise: P2P isn’t dead, after all. 300 million users swap files via BitTorrent every month, according to new numbers from media intelligence startup Tru Optik, which estimates that every month, more movies and TV shows get downloaded by file sharers than are sold on iTunes, Google Play and Amazon together.

And we’re not just talking about users in countries where media would otherwise be inaccessible. Users in the U.S. download more movies, TV shows, music and software than any other country, according to Tru Optik. The only exception to this rule is video games, where users in Brazil are more active than their U.S. counterparts.

READ THE FULL STORY AT GIGAOM:
http://gigaom.com/2014/05/28/file-sharing-is-alive-and-well-to-the-tune-of-300-million-users-a-month/

Music Piracy Is and Should Remain Illegal | NoisePorn

The problem is not that the music industry is refusing to change with technology and culture. In fact, I find it spooky that the notion of revamping the system to pander to those engaging in criminal activity is even being uttered. The problem is that we’ve become a society that excuses douchebaggery as a sign of the times; an “everybody’s doing it so, whatever” phenomenon. And, instead of enforcing logical rules (i.e. prosecuting the wrongdoers), we justify the despicable and conjure up excuses for their behavior. Maybe they weren’t hugged enough as children. Or maybe the music industry is being unfair by trying to profit from what some think should be free and accessible to everyone. We then, as if stricken with Stockholm Syndrome, develop a completely warped sense of empathy toward the culprits; bending the fist of justice until the finger of blame points back at the industry and its still bleeding wounds.

READ THE FULL STORY AT NOISE PORN:
http://www.noiseporn.com/2014/05/music-piracy-remain-illegal/

U2 manager: ‘Google is the greatest theft enabler on the internet’ | Music Week

Discussing piracy, McGuinness suggested Google isn’t dealing with illegal links because “they don’t want to”.

“There are some vested interests that could help a lot more than they are doing,” he explained. “Google is the greatest theft enabler on the internet, when I Google YouTube music there are multiple opportunities to steal it.

“I don’t think the industry takes [Google’s] promises to take things down when they get a notice sincerely. They take it down but the bots replace them immediately. I don’t thinks it’s beyond the ingenuity of those clever people at Google to deal with that, but I don’t think they don’t want to.”

READ THE FULL STORY AT MUSIC WEEK:
http://www.musicweek.com/news/read/u2-manager-google-is-the-greatest-theft-enabler-on-the-internet/058534

Copyright “safe harbors” shrink in wake of MP3Tunes, other red flag rulings | GIGAOM

In case you missed it, a jury this week found that Michael Robertson, CEO of defunct music service MP3Tunes, was liable for copyright infringement. The jury concluded that Robertson, whose websites permitted users to upload songs and store them in “lockers,” had turned a blind eye to piracy — meaning that they forfeited the so-called “safe harbor” protections under copyright law that normally ensure that a website is not liable for the misdeeds of its users.

The significance of the case has little to do with MP3Tunes, which has long been closed, but instead stands as a strategic victory for copyright owners. That’s because the jury found Robertson liable on the basis of so-called “red flag” knowledge rather than “actual” knowledge. The distinction may sound arcane, but it’s one the studios have fought hard to establish as part of their strategy to change the level of proof needed to prove piracy.

READ THE FULL STORY AT GIGAOM:
http://gigaom.com/2014/03/21/copyright-safe-harbors-shrink-in-wake-of-mp3tunes-other-red-flag-rulings/

Sons of Anarchy Creator Kurt Sutter Responds to Google Shill Marvin Ammori, and boy is it good!

So Google shill Marvin Ammori wrote an Asperger’s ridden anti-copyright, anti-artist tirade on Slate. Of course in doing so Marvin failed to represent his past and current affiliations to Google. Slate, to their credit amended the rant with the following:

Update, March 11, 2014: Disclosure: The author represented Google and other companies fighting SOPA/PIPA in 2011 and 2012. He currently represents Google and other companies on several issues, including copyright reform. These views are his own.

googlepropagandaasnews

Of course, this isn’t the first time that those with a political agenda haven’t disclosed their affiliations. Who can forget Timothy B. Lee’s Epic Fail in the Washington Post on Piracy?

And so, we present the brilliant rebuttal to Google’s disingenuous attack on the rights of individual creators and artists by Kurt Sutter.

Not-So-Zen and the Art of Voluntary Agreements
Google’s anti-copyright stance is just a way to devalue content. That’s bad for artists and bad for consumers. By Kurt Sutter

It’s so absurd that Google is still presenting itself as the lovable geek who’s the friend of the young everyman. Don’t kid yourself, kids: Google is the establishment. It is a multibillion-dollar information portal that makes dough off of every click on its page and every data byte it streams. Do you really think Google gives a shit about free speech or your inalienable right to access unfettered content? Nope. You’re just another revenue resource Google can access to create more traffic and more data streams. Unfortunately, those streams are now pristine, digital ones of our work, which all flow into a huge watershed of semi-dirty cash. If you want to know more about how this works, just Google the word “parasite.” And if you think I’m exaggerating, ask yourself why Google spends tens of millions of dollars each year to hire lawyers and lobbyists (like Marv) whose sole purpose is to erode creative copyright laws.

Do they do this because they hate artists? No. They do it because they love money.

READ THE FULL STORY AT SLATE:
http://www.slate.com/articles/technology/technology/2014/03/sons_of_anarchy_creator_kurt_sutter_google_s_copyright_stance_is_bad_for.html

RELATED:

Google, Advertising, Money and Piracy. A History of Wrongdoing Exposed.|Trichordist

Why Google Really is Evil | Fox Business News

Google and Trichordist to debate piracy profits in London | Music Week

Homegrown Music: The Challenges Of Running A Record Label in D.C. | DC Music Download

“I don’t think people understand the idea that music is someone else’s property because it’s just in digital bits,” Feigenbaum says. “It’s intangible. People who feel music has no value and want to steal from you will steal from you. It’s so ubiquitous—it’s so easy”.

“I have people come up to me and tell me how much they love what I do, and I’ll be like, ‘That’s great, where do you buy it?’” notes Feigenbaum. “And you can see they weren’t expecting that and they start to stammer. It’s like, ‘You’re not helping me. You’re not a fan-you’re a leech.’”

“I could go on and on about the things I don’t like about iTunes,” he says, “But they do pay. It’s not my favorite business model, but I get paid from them.” Spotify, however, is another matter.

“They don’t pay shit,” he says. “The only people who make money off of Spotify is Spotify. We were getting thousands of listens on Spotify, which added up to literally one and a quarter pennies. So we opted out.”

READ THE FULL STORY AT DC MUSIC DOWNLOAD:
http://dcmusicdownload.com/2014/02/12/homegrown-music-the-challenges-of-running-a-record-label-in-d-c/