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

Short Term

Thinking short term is hurting us. Every leader in charge thinks about the now and never about what’s around the bend. The majority of people in charge of corporations only care about the now. What is our bottom line looking like? There is no care about their environmental footprint or employee well-being.

Record labels are the same. They focus so much on first week sales and charts as they believe it brings in an instant payday, without understanding that the payday they are really earning is from music created 30 plus years ago and it just percolated, slowly rising to the top.

Have you heard of the record labels starting to employ artists as employees and offer them retirement plans? 

Of course not. That’s long term thinking. 

So Disney is pulling its catalogue of movies from Netflix in 2019. As a Netflix user, I say who cares. I never started subscribing to Netflix because they had Disney movies. I started subscribing because I wanted Netflix Originals. And with the addition of a comic book company with a cult like following, Netflix is looking at creating its own shared universe. It’s positive and long term thinking.

How often do we hear that people have no reason to pirate from the movie studios and record labels, as their catalogues are available online legally?

Amnesia seems to be the order of the day for the labels and studios because the online legal alternatives are fragmented. And as long as fragmentation exists, the pirate sites will be numero uno for content consumption. Same deal for music that’s available on Tidal or Apple and not on Spotify and vice versa. It’s ridiculous. So are consumers meant to have three streaming subscriptions for music and another ten streaming subscriptions for movies/TV. I don’t think so.

Consumers don’t want to have a dozen or so subscriptions. Just look at the cable TV industry. Too many subscriptions are expensive and not manageable, especially when these streaming sites are competing with illegal streaming sites who offer everything on the same site. Illegal streaming sites also show the content industries what kind of supply consumers want. At the moment, the content industries are focusing on the payday right now which means limiting the supply instead of the payday in the long term which means to open the supply and get more people to subscribe.

So what would Spotify do if Universal, Sony and Warner pulled their music from the service and started up their own service like Disney?

I don’t think it will happen. The revenues the three majors are getting from streaming licensing deals and royalty payments is insane. They would be crazy to leave Spotify. But if they do, Spotify is in trouble as it has no original content.

Have you seen the revenue numbers from Warner Bros lately?

Streaming grew by almost 60% from $227 million to $360 million. Downloads bring in $88 million, down from $121 million. Forget about vinyl, CD’s and cassettes. They are niche items that collectors would buy, however they will not sustain the business.

Overall income from recorded music grew by 13% to $770 million and it happened on the backs of listening instead of selling. Consumption in the 2000’s is all about access.

So if Spotify doesn’t pay, how did Warner accumulate $360 million dollars in streaming fees? All of those artists who sold their rights to corporations are losing out big time. The corporations who hold the rights are making a lot on streaming. 

The rich are getting richer. Meanwhile, we have clueless sites reporting how legacy artists need to hit the road to keep an income as they have no monies coming in from streaming. Well, these legacy artists need to get with the times. Get their fans to stream instead of buy and the corporation that has your rights will get paid royalties. And if you have a good deal with the corporation that holds your rights, you will get paid as well. If you don’t have a good deal, you will get squat. The game is rigged in the record labels and publishers favour. They are making a tonne.

It wasn’t supposed to be this way. The internet was supposed to level the playing field, give us all a chance. Instead we have monoliths who control 70% of the marketplace. And the powerful always abuse their position. Look no further than the scandals.

In Australia, we have our largest bank, Commonwealth Bank of Australia, involved in money-laundering. The deputy commissioner of the Australian Tax Office was covering up the multi-million tax fraud of his children. Politicians are resigning because they developed amnesia and forgot they are dual nationals, which is a breach of the Constitution. And still no word if they get to keep the money they fraudulently earned or they need to pay it back. All short term thinking.

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3 thoughts on “Short Term

  1. Pingback: Short Term — destroyerofharmony | Promo-Studio.com Blog

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