Do You Love Music? Silicon Valley Doesn’t
nytimes.com
nytimes.com
A quick search of the author reveals a slant and bias so strong you'd think he was a lobbyist writing legislation instead of an Op-Ed.
Whatever points he's trying to make about the "value gap" he runs right to the absolute same party-line Azoff, the RIAA, and multi-national conglomerate rights-holder firms want: Fiddle with safe harbors, and get the US government to jack up the rates streaming services pay for music by way of tweaking the rules for terrestrial radio. It's all very clear for anybody who is keeping track of this debate.
So, if you want a consolidated, heavily biased stump speech designed to raise sympathy ("Think of the poor musicians! Think of Prince!") and deflect from the more customary benefactors of such changes, multi-billion dollar companies, here you go. It is what it is.
And, while I'm a fan of Prince and his successes, I think the guy isn't an icon to be emulated when it came to rights management and his approach to "the music business" in some ways. As a musician he had just as many flops - if not more - than actual hits. He also wanted to completely ban cover songs, which is a really shitty and selfish attitude in my opinion. Guys like Prince and the author would, by logical extension, want to kill off "remix culture" and some of the changes that are pushing toward real, useful Copyright Reform in time.
I don't think SV and VC doesn't love music, and I don't think the whole intention is to rip off music artists. The industry already rips off music artists to an insane degree. The music industry doesn't have a lot of high ground to get preachy until it cleans up its own accounting (Eminem's successful lawsuit regarding digital royalties for licenses vs. sales) and contract issues (Kesha and Kemosabe) that reflect poorly on the motivations, actions, and long-term vision of the industry.
Songs played on Youtube, Spotify, Pandora, etc. and their covers drives little direct revenue to the artist. I doubt that will change anytime soon.
However, that drives serious brand awareness to the artist, who could then sell other add-ons (music tickets, t-shirts, limited edition releases, etc)
Maybe I'm naive to the industry. But most business owners I know would kill for marketing that paid them and returned an ROI.
Not all genres lend to live performance. Not all audiences buy t-shirts. Not all audiences purchase music at all.
Once people didn't have to pay huge mark-up to get music they rationalized that musicians weren't getting much anyway - so, let's spend our money on live shows, merchandise, fan club stuff - and there's a lot of music lovers that I believe have spent their money from recorded music on other music related things. Not sure there's data to support it, but I've always thought of recordings as kind of the throw-away element to being in the music industry: Nobody makes money on them unless you get them in a TV commercial or a movie soundtrack.
That is objectively not true. Labels are very strict about issuing takedown notices. The only videos that stay up are those using content ID, in which case the artist gets paid.
I know this is an op-ed, but shame on the NYT for allowing such a blatant falsehood to be published.
This also happens to be the most popular music in history, so I don't know that it's worth completely brushing off with angst.
http://www.stereogum.com/1877413/behind-the-music-steal-my-s...
From Forbes:
"Anti rules the Billboard 200 with just 54,000 equivalent units moved. If that figure was comprised only of actual sales, it would make it one of the lowest-selling number one albums of all time, but it’s actually a combination of both pure purchases and streams. When looking solely at sales, Anti sold a paltry 17,000 copies. Yes, that’s right—the number one album in the largest music market in the world sold just 17,000 units."
And today, we are told that 1,500 streaming plays equals an album sale, which is presumably because they tell us that royalties are something like $0.0017 per play and the artist's cut should be around $2.25 per album sale? Who knows.
When an average music video has hundreds millions of views, 2700 views is actually an incredible proof of how quick google is to take down pirated music. For comparison, the original "Drag Me Down" video has over 459,286,538 views.
Also - I'm pretty sure a lot of these so called pirated versions don't really include the original, unaltered audio track, or just include a few snippets from the video.
Is it really too difficult to file a DMCA claim? Especially since most content holders seem to use automated, mass report systems these days.
Also, I bet YouTube could get behind the "best technology" requirement, since it would likely make it impossible to make a user-uploaded-video site unless you already have the technology resources and content databases of someone like Google...
This is what the article reminds me of. The big music industry sometimes seems clueless to how people actually experience music. They instead want to blame the (visibly public) tool, and think that drastically tightening up the tool will be the solution to their problems.
As seen above, music is a natural part of communication and identity etc. People naturally like to share music with others. Even in the "record industry" days, people traded tapes all the time (for instance, tape trading popularized many of the speed/thrash metal bands in their day. Such as Metallica, which is one of the big reasons why their anti-Napster attitude was so ironic).
For this reason, I believe far more in content ID type solutions than strengthening the takedown weapon. If 2700 people upload One Direction songs, so what as long as One Direction is correctly identified and paid for all videos and views?
Certainly there is work to be done on effective monetization models for streaming, and the mechanics of content ID, and other challenges. But actually calling Google and streaming services pirates (as this article did) is completely wrongheaded.
I think Google and streaming services are legitimate businesses. If the industry tightens the noose too much on the legitimate businesses, consumers absolutely would go back to underground, the new Napsters.
http://www.salon.com/2000/06/14/love_7/
Keep in mind that this was written in 2000.
How about a "this is a double bind" argument button next to stories?
For example, I got a book at Barnes and Noble the other day, and when I responded to the cashier's pitch for a Barnes and Noble card with something like "No thanks, I get most of my books through torrents", they looked at me like I was trying to talk about the taste of baby meat. Your average content consumer pays for media, and there is no definitive evidence pirates would pay for music and media if free downloads were not available. Spotify, on the other hand, is targeted at those people who would normally buy music, and offering a cheaper alternative that also pays the artist substantially less (almost nothing, in some cases).
I'm not sure how sold I am on the idea that Spotify converts more people away from buying music "the old fashioned way" than it does convert former pirates into now (meager) paying customers, but I can definitely see it as a possibility. Unfortunately buying music sucks. Having to keep track of, discover, and store music (in any medium!) sucks. Especially if you aren't a collector of some kind. Spotify/Google Play/Apple music make that easier and that's why people are going to pay for it.
http://marketingland.com/report-youtube-roughly-break-even-e...
[1] https://en.wikipedia.org/wiki/Lola_Versus_Powerman_and_the_M...
http://www.spin.com/2012/10/universal-settles-influential-em...
Not to mention the industry wants all its aging / legacy acts to not think about how sound recordings before 1972 may be eligible for return to the creators rather than the business enterprise that owns them currently. It's complicated but financially worth the trouble for some!
Think about it though - terrestrial radio already offered music for free. Dozens of stations! All sorts of genres!
The only difference is the RIAA/major players had - practically speaking - an iron grip on controlling what was being played on those stations. Thus the free music was an enticement to purchase more objects related to that act. Live shows, t-shirts, etc.
Believe me, there's a lot more money in branding than there is in selling music. Jessica Simpson has made insane truck-loads of money on her fashion line - enough to make her music sales probably look like a rounding error. Free music isn't new to the internet, I guess is what I'm getting at.
The big difference was that music on FM radio enticed people also to go buy the vinyl LP (at $12 (or so) a pop in 1977 money. Ouch.).
So (taking us in yet another direction), the problem is one of technology: once downloads replaced vinyl and CDs, the only thing left is merch and other branded items, which sell far fewer units relative to the LP or CD of yesteryear.
The labels blew it on technology (they went from shellacs to 45s to LPs to CDs and stopped there).
I hate how these services and the record labels think only about the US/their country.
For example one of my favourite bands is Italian and apparently most of their older music is blocked on youtube in my country. There really is NO WAY for me to get the music legally. Even the torrents have very few seeders and I'm scared in a few years I won't be able to listen to this music anymore. I just hope i won't lose my backups.
But licensing is complicated, difficult to manage, and is frankly a mess. So it's often not worth it to launch in many territories at first; and in some territories, not ever.
Will this become unsustainable at some point? Money is definitely flowing on the Internet, but not necessarily into the pockets of the content producers.
In fact, this article glosses over the fact that the RIAA used to have such a huge stranglehold over the industry that they were the ones profiting off the musicians, wasn't this why Prince was "formerly known as" for a long while?
[1] http://esq.h-cdn.co/assets/16/16/640x320/landscape-146126259...
Musicians, once signed to a record company, are not so lucky.
I think it's an apt analogy. The RIAA wants to make money. Music is the vessel. That's, well, kinda it.
The author probably just wanted to say that he wants more money for his own work. ..that's understandable, but meaningless.
Deadmau5 kind of has taken your approach with a direct-to-fan subscription service that might be an interesting case study.
Widespread reach? It's the internet! How widespread do you need to be? ;)
Also, labels != radio. It's not radio's job to nuture and develop bands. But they can expose bands to greater audiences, which allows people like us to "discover" new-to-us bands.
These days, the barrier to entry for discovery is lower than it's ever been. If you get your music on all of the various internet music services and some of the internet-radio programming, you are much more heavily distributed worldwide than any garage-band in the 70s or 80s could ever have been at the time.
The 'bar for discovery' has two parts: The bar for potential discovery is now very, very low. But for actual discovery it is high because the "signal-to-noise" ratio is very low: by that I mean there is so much crap (noise) to wade through before you find a great band (signal) that the work of curating has shifted from the radio stations and record labels to the consumer. The nice thing is that you can find excellent music the major labels will simply ignore. The not so nice thing: it requires work on your part to seek out and engage with the curators of content.
This is why finding the internet radio programs that feature the genre you enjoy, and following the music-programmers who curate with taste that you share, is vital to a good discovery experience.