Copyright, Music, My Stories, Piracy, Stupidity, Treating Fans Like Shit

The Big Money In Streaming Licensing Deals

Everyone is blaming Spotify for bringing in windowed exclusives. But in reality it’s not their fault.

Spotify is a service, that provides music to users. It was created by techies because the record labels didn’t have the clout to do what was required for their artists and the vast copyrights they hold. But for Spotify to work, it needed access to the vast libraries of copyrights the record labels hold. And this is how Spotify as a service will cease to work unless they move in and start creating their own content and developing their own artists. Like how Netflix has, like how HBO went from licensing movies from the movie studios to creating their own content.

And Spotify now has owners that are interested only in making money. Hell, the record labels even have a stake in Spotify, so Daniel Ek is at the mercy of these owners, who are all waiting for Spotify to go public so they could rake in billions for their millions investments.

But the record labels control the story and Spotify is portrayed as the baddie, while the faceless record labels hide behind the artists who decry Spotify and other streaming services. The record labels have done such a great job with their fake news story about streaming rates killing music, but they forget that the numbers don’t lie. Maybe they can explain why did their revenue go up to double digits and it’s back to those billions of the CD era?

But it’s the record labels who are not paying back to artists and songwriters the cash they are flush with.

For those that don’t know, Spotify and Universal Music Group (UMG) have come up with a new licensing agreement which forced Spotify to restrict new albums from Universal artists to the premium service for a two weeks as a minimum. So what about the artists who withhold their music from streaming services for a month. That could mean a six-week gap for the free tier ad-supported users of Spotify. Take a guess as to what that means. Piracy will be back with a vengeance. But then, the record labels via the RIAA will just scream and lobby hard for laws to change and stricter enforcement to happen. You can do more time in prison for a copyright offence then an actual crime.

Daniel Ek should have told Universal to go and shove it. The only streaming options for Universal would be Tidal, Pandora and Apple Music. Let’s see how far they would have gone with that.

Then Daniel Ek, should have gone after the big artists and made deals with them exclusively, cutting out the record label in the process. Yeah, I know contracts play a part, but the labels are nothing without the ARTISTS. It’s the artists that make the record labels money and not the other way around. And if the artists all challenge the status quo, then different outcomes would happen. But all of these are difficult conversations to be had and no one wants to lose out on any money.

Every artist should be suing their label for negligence and unpaid wages. How can a label not be seen as negligent by restricting access to music?

Research continues to show that people don’t like to be told how to do things. But the labels believe they know what people want.

The labels are delusional if they think the public would just take out a premium streaming offering, because of windowed releases. It will not happen, the same way, analog phones are not going to happen. Once we move on, we move on. There is no going back. Anyone remember MySpace or Yahoo or even Netscape.

There’s no doubt that ad-supported free tier will end. The labels would make sure of that in the next round of licensing deals in a few years time.

But for an artist, fans these days, don’t want to pay high rates for recorded music. They want the history of music for a low price. They would rather pay for the experience of the show. And in all of these boardroom deals between techies and record labels, it’s the artists who don’t control the rights to their music that get burned. And for some reason, Rush’s “The Big Money” comes to mind.

Big money make a million dreams
Big money spin big deals

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2 thoughts on “The Big Money In Streaming Licensing Deals

  1. I am a Pandora guy and have never done Spotify. I am also a premium member at 4.95 USD a month. I think the service is good but I have noticed recently, they are slipping in a number of bands that I have never heard of onto my play list. Also a number of bands are strangely gone missing from my playlist. I am getting more Iron Maiden and less Slipknot where in the past it was reversed.

    Does Pandora have the same restrictions as Spotify? And do they artists get any monies from me liking their songs?

    • Pandora would have signed a licensing deal with its own restrictions that could be the same as Spotify or a bit different.
      In relation to the likes: they are used by the algorithms to create the playlists for you.
      Artists get paid on listens.

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