Analysts continue to warn that music streaming is unsustainable financially, at least without dramatic changes. The question is what the top streaming executives themselves think about the future of their own businesses, and how this is ultimately guiding their decisions.
Enter the modern-day Napster, a now-European streaming service that is now saying things out loud. ”Music streaming will never become the primary medium,” Napster SVP Thorsten Schliesche flatly told the UK-based Inquirer in a recent interview.
Is this the future of music? We continue to look at more artist revenue streams. We've been waiting for someone to send us this kind of data. This info was provided anonymously by an indie label (we were provided screenshots but anonymized this info to a spreadsheet). Through the cooperative and collaborative efforts of artists…
Today MIDiA Consulting is proud to announce the publication of an important new report: The Death of the Long Tail: The Superstar Music Economy.* The report is available free of charge to Music Industry Blog subscribers.* (If you are not yet a subscriber to this blog simply enter your email address in the box on…
The Songwriter Equity Act, a new bill introduced by Rep. Doug Collins (R-GA), will amend two outdated portions of the Copyright Act that are harming songwriters, composers and publishers in the digital age. Get the facts and show your support.
"We need to have a sustainable system for people who create culture," says John McCrea, announcing a new coalition
Let’s talk about that specifically. You’ve conceived of the Content Creators Coalition not simply as a group of musicians but as a place for writers, artists, journalists, artisans, others. What do these groups, all of whom do different things, have in common? Why do they belong together?
We all have in common the fact that our work — sometimes things that we do that take five years in a small room, as in the case of an author of a book — is easily digitized and distributed, sometimes consensually, sometimes nonconsensually, and I think therein lies our commonality. We need to have a sustainable system for people who create culture. Independent filmmakers, authors of books, journalists increasingly are without much of a bulwark against giant market forces, giant corporations — corporations the size of nation-states, who I guess we’re supposed to be negotiating with in a free market. But there’s a problem with the size of some of these entities compared with the size of a band or a writer or a filmmaker.
It’s not a fair fight at this point.
Yeah. We think that there needs to be aggregation of content-worker power.
The District Court of Munich agrees with GEMA, saying YouTube has illegally made them out as a villain. The court said YouTube should make it clear that the videos are unavailable because of a disagreement between both parties.
The verdict is not yet finalized. If it goes through as-is, YouTube could be fined up to €250,000 for every video that continues to display the message.
Essentially, the bill attempts to plug two massive loopholes in copyright law that greatly benefit Pandora but essentially screw songwriters. ”Roughly two-thirds of a songwriter’s income is heavily regulated by law or through outdated government oversight,” National Music Publishers’ Association CEO David Israelite explained to Digital Music News. ”This legislation addresses two significant inequities under current copyright law that prevent songwriters and music publishers from receiving compensation that reflects the fair market value of their work.”
This report confirms that content theft isn’t a cottage industry—it’s big business. Plain and simple, ad-supported rip-off sites are exploiting the Internet and advertising community to get rich. The result is a damage to brand value for advertisers and serious harm to people who work in the creative industries. We hope this report pushes the online advertising community to take additional steps to protect brand value and stop ads from appearing on content theft sites that are undermining the vibrancy and safety of the digital marketplace.
In the latest example, a group of artists including David Byrne, Mike Mills of R.E.M., John McCrea of Cake and the guitarist Marc Ribot are putting on a free concert on Tuesday at Le Poisson Rouge in Greenwich Village to protest the way radio stations pay royalties, and to introduce a new advocacy group, the Content Creators Coalition.
“This is possible now because musicians and artists are fed up,” said Mr. Ribot, who is renowned for his work with musicians including Tom Waits, another coalition member. “It takes a lot to get a musician to go to a meeting, serve on a committee. It’s not what we do; we play music. But the way things are now, many of us feel that our backs are to the wall.”
Technologists in Silicon Valley love to tell artists we need to update our business model.
This is hilarious since each of my businesses have been profitable for decades. Stunning when you look at just how unprofitable these Silicon Valley Companies actually are. Twitter for instance lost $645 million dollars last year. Jaw dropping when you consider that there total revenues were $646 million dollars. They spent 2 dollars for every 1 dollar of revenue. And if you look at their losses they are accelerating.
Now consider the fact that the City of San Francisco also gave them approximately $56 million in tax beaks. This is while the city has been pushing to slash benefits to city workers.
“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.”
* Senior banker says firm to be valued at $7-8 bln
* Spotify doubled revenue but registered loss in 2012
STOCKHOLM, Feb 17 (Reuters) - Online music streaming service Spotify is recruiting a U.S. financial reporting specialist, adding to speculation that the Swedish start-up is preparing for a share listing, which one banker said could value the firm at as much as $8 billion.
Meeting U.S. Securities and Exchange Commission (SEC) standards for filing financial disclosures is essential for any firm planning to go public and bankers and lawyers said they inferred from the job ad that the company is getting ready for an initial public share offering (IPO), possibly next year.)
In the longstanding fight to combat online piracy, there’s been growing pressure on the advertisers whose ads appear on sites that steal copyrighted material. The Obama administration has called for private-sector actions to reduce piracy.
After federal antitrust investigations, both groups agreed to government supervision in 1941.
This system has hummed along for decades. But with the rise of Internet radio, publishers have complained that the rules are antiquated and unfair. They point to the disparity in the way Pandora compensates the two sides of the music business: Last year, Pandora paid 49 percent of its revenue, or about $313 million, to record companies, but only 4 percent, or about $26 million, to publishers.
“It’s a godawful system that just doesn’t work,” said Martin N. Bandier, the chairman of Sony/ATV, the world’s largest music publisher.
The wider music world has been galvanized by the issue of low royalties from fast-growing streaming companies.
Oddly, few people are talking about how much money they are actually making through Spotify, but it’s estimated that the average play is worth an abysmal $0.005. That’s half a cent…if you’re getting anything at all. An artist needs to rack up 200 plays to make $1. How are we letting this happen?! Is the general population truly oblivious to the tremendous effort and cost involved in making music?
Surprise! Songs don’t just pop out of artists like perfectly polished Easter eggs. These creative humans have dedicated a large amount of their time, money and soul to create a tangible piece of art for your listening pleasure. Studio time is expensive! Rehearsal space is expensive! Gas is expensive! Instruments are expensive! Craft beer is expensive!!! Strike that last one. But seriously guys, when you buy music, you’re not just paying for a song, you’re supporting the artist and the process.
The Washington beltway turned a deaf ear to artists' rights until one guy, one activist, wrote the words "I Respect Music" on an index card and showed it to the world.
Now, thousands upon thousands of music makers and music lovers are standing together and making history by adding their names to a petition that is not only shaking up the music world, it's shaking up Congress.
The petition, written and launched from the laptop of artist and musician Blake Morgan, has gone viral at an unprecedented pace. Everyday working musicians, music fans, music organizations, and luminaries like David Byrne, Patrick Stewart, Gavin DeGraw, Jean Michele Jarre, Marc Ribot, Roseanne Cash, Mike Mills, John McCrea, Civil Twilight, Clap Your Hands Say Yeah, and countless others have voiced their support by both signing the petition and posting or tweeting a "selfie" with the hashtag: #IRespectMusic.
Aerosmith lead singer Steven Tyler and music attorney Dina LaPolt have sent a letter to the U.S. Patent and Trademark office opposing the creation of a compulsory license that would allow anyone to legally create remixes and derivative works, without getting songwriter permission.
For example, in 1986 Run-D.M.C recorded a version of Aersmith's "Walk This Way." As a cover it could have requested a compulsory mechanical license to create their version. But instead Run DMC involved Tyler and Aerosmith guitarist Joe Perry, who authored the song, in the process to create "one of the most famous derivative works of our modern times."
"A compulsory license for remixes, mash-ups and sampling is a step too far," they argued in their letter, which was provided to Billboard. "Approval is the most important right that a recording artist or songwriter has and they need to retain the ability to approve how their works are used... The current system does not need reform."
Music piracy is a subject that has been talked to death over the past decade. So much, in fact, that it seems scarce conceivable that we could say anything more of interest on the subject.
The fundamental point I’d like you to take away from this is: it’s a lot more important to keep a watchful eye on ostensibly legal services – recall that both Pandora and (perhaps to a lesser extent) YouTube are legit – than to agonize over overt piracy.
That pirate services should be hunted to as close to extinction as is feasible goes without saying, but we mustn’t lose sight of the fact that nobody deserves a medal for going legit. It’s what you’re f-ing supposed to do.
It’s not the message, but the messenger–a hypocrite to its very corporate core. If Google as a company truly believed in “human rights” why does it continue to disregard the rights of artists at every turn? Perhaps those who doodle for Google might want to review the United Nation’s Universal Declaration of Human Rights (Article 27, paragraph 2) which includes this passage:
(2) Everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.
Why is Google so keen on “fair play” and the rights of athletes to compete, but when it comes to artists, not so much?
Pandora has finally opened its doors to musicians (and comics) who aren't on a label and don't have a physical CD with UPC on Amazon. This is great news for both DIY and digital-only musicians whose presence in the industry has grown stronger with the rise of EDM. Once word spreads there's likely to be a glut of music submitted and extra delays in consideration by Pandora so do submit soon and avoid the rush. If you're trying to be findable by fans and future fans, Pandora is one of the places you would typically want to have your music...
Google’s business interests are diabolically opposed to the interests of artists and media companies. And they are winning.
Just try searching for any popular artist, and watch auto-complete drive you to torrent sites, illegal lyrics sites, and maybe a legitimate destination.
That’s just how a search engine works, right? Bulls**t: Google modifies and controls its search results every day to its own benefit (just ask Rap Genius, which tried to game Google’s SEO). If they don’t like you, you disappear overnight and die. But when it comes to obviously infringing and artist-unfriendly torrent sites, Google is happy to (a) accept their advertising money, and (b) prioritize their placements over legal sites like iTunes.
“I just wonder what plans in the future Google has in place to just get rid of that, because you seem to be able to change the rankings of websites daily, but you can’t stop showing sites that allow free downloads.”