Music, My Stories, Stupidity, Treating Fans Like Shit

Disruption

When something new happens, the organisations who don’t want to change at first ignore it, then they protest against it and eventually they accept it.

But it takes time.

Remember Kodak, who had a billion dollar business selling film for cameras, and didn’t really want to cannibalise those sales and by 2012, when all of their digital patents expired, they filed for bankruptcy, to emerge a few years later, a much leaner and smaller company.

Well, today, cinema complex owners are refusing to screen movies created by Netflix, because they believe Netflix cannibalises their business. Film festivals are refusing to consider Netflix films because the festival organisers don’t want to upset their main sponsors, which are the traditional movie studios and cinema organisations.

Read the story, about how “The Irishman” from Martin Scorsese, is being ostracised because Netflix picked up the financing when no movie studio wanted to do it, and gave Scorsese free reign to film it how he wants to. In the process, Scorsese, according to critic reviews has delivered a 5 out of 5 movie.

The cinema experience will not disappear, but if the film industry wants to run the cinema’s the same way it did back in the 50’s, then they will die a painful death the same way Kodak did.

Being flexible to change and being able to adapt is the key to survival.

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A to Z of Making It, Music, My Stories, Stupidity, Treating Fans Like Shit

The Labels Complain Again

It’s typical of the recording industry to complain about anything which benefits the consumer. They seem to forget that the profits they make is due to a relationship between the artist and the consumer. There is a zero relationship between the record label and the consumer. From the consumers point of view, the record label doesn’t even exist in their mindset.  

So the labels license their music to various streaming services for a fee and then pocket the majority of the multi-million fee instead of spreading it to the artists, because hey, why would the labels compensate the artists, since it’s the works of the artists that give them the negotiating power at the table.

Apple is considering putting a bundle together that incorporates Apple Music and Apple TV. More subscribing customers who normally wouldn’t subscribe to a music subscription would increase the pool of money. But then again, how many people would give up their Netflix and Spotify subscriptions for an Apple Entertainment bundle. We wouldn’t know because no one does their due diligence. For the record, I wouldn’t give up my Netflix, Spotify and Amazon Prime subscriptions for an Apple bundle.

So all of this is based on feelings. And somehow these feelings from the label executives that they will be ripped off are not based on any research or evidence.

Read the article.

Of course, the labels will sell the story that if they lose money, then it would have a flow on effect to the artist. But the labels haven’t been losing money for the last 5 years, so why aren’t the artists getting paid.

And artists bash up Spotify, but no one is speaking up about these bundles that Apple is proposing.

There is a blog post over at Seth’s Blog about ways to grow. It basically states that if you persist and get the word out, you will be the same. There will be no growth. This is the record label model, do what they have always done.

However to grow, they need to change something, like enter a new segment, earn trust or do work that matters to someone.

But it’s hard to grow and help the artists when the label executives are dragged kicking and screaming into a new segment.

Steve Jobs convinced EMI to sign on for $0.99 mp3 digital downloads and the rest came, only after years of negotiations. It took 3 years for Spotify to be licensed in the U.S. and during that time, YouTube became the unofficial streaming provider. And then again, they had to get a stake in the company in order to give the approval.

Artists really need to have a look at what they are signing away, because the label doesn’t care for you at all.

If they did, they would be proud to enter new market segments which could lead to more income. Instead they are scared to lose what they have, so they persist and do more of the same.

Complain.

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A to Z of Making It, Music, My Stories, Piracy, Stupidity, Treating Fans Like Shit

The Power Of The Record Labels

It’s 1992.

Hard rock bands are becoming too generic and soulless, especially the newer breed from 1989 and onwards. The fans are looking for something new, but they still have their taste buds all over the hard rock/metal distorted cream.

Meanwhile, the labels are signing Seattle bands, left, right and centre, while they start dropping hard rock bands left, right and centre. Not only could the labels make an artist famous, they could also make an artist destitute. And back then, without the money and power of the label behind an artist, an artist would go unnoticed.

The power the record labels had to kill careers or to destroy styles of music.

So the artist would sign a deal and get a small royalty payment from the label. Today the artists would still sign a deal because they see the label as their ticket to riches, but instead the artists are now complaining of the low royalty payment of streaming services, but it is still the label keeping the lion share.

In other words, you give to get.

You give your rights to the label in order to get a chance at fame and riches. And there’s no use yelling at streaming services. They are not record labels, they are technology companies, using music to influence culture and grow their brand. Once their brand is big enough, they will do away with music.

Because seriously, which company wants to pay billions in licensing and be constantly in the courts?  

HBO paid billions in licensing, until it got to a stage where it was unfeasible and they had to start creating their own content. Netflix at first had only licensed content. And like HBO they saw that it was unfeasible, so they started investing in creating their own, and slowly doing away with the licensing.

Now, more than any time in modern recording history, an artist can do it themselves. They can record cheaply, distribute and get paid. So artists should build their own leverage and then they can decide what is next.

But we have lived in a world where the labels have controlled the narrative for way too long and MTV made everyone think that if they learnt how to play an instrument they will be rich and famous. The majority still hold this view and the minority that don’t, are the ones making it.

People talk up Record Day sales like they matter, when only the label is winning, while digital distribution can offer an artist new audiences in places where brick-and-mortar stores would be impossible or unsustainable, like foreign countries or rural areas. The end result is growth across the board. Nowadays it’s about reaching as many people as possible and eventually the money will flow in if you do it right. That should have been the role of the labels but instead it’s up to the techies.

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A to Z of Making It, Music, My Stories, Stupidity, Treating Fans Like Shit

Greed

Greed threatens everything. The act of wanting more doesn’t work in a business built from emotions. People connect with music because it connects on an emotional level first. And not all connections are transactions. Sometimes it takes years for the music fan to spend money on an act.

So where are we at?

Years ago, in the land that introduced streaming, Swedish musicians sued the major labels Universal Music And Warner Music over streaming royalties. At the same time, major artists around the world also sued their labels over how they paid iTunes sales back to them. Eminem said it should be under the licensing rate (which is higher), while the labels argued that it should be under the sale rate (which is lower).

Then artists started filing “copyright termination” applications (which is legislated, that they are allowed to do so), however the record labels kept rejecting these applications and off to court the two parties went. Some artists won and others like Duran Duran lost. And some are still on going.

Because the labels don’t want to lose control of these rights as the more Copyrights they hold for popular songs, the more power they have at the negotiation table with the techies, so in return they get higher licensing fees, which they really keep to themselves. If the labels really cared about the artists, then they wouldn’t have put the masters of classic albums, plus the back-ups, in a tin shed with no climate control. And when it all went up in flames they employed subterfuge.

But when Napster came and the distribution gatekeeper got abolished, everyone said the major labels would fold. But instead they got more powerful because for any technological service to operate with music, they need to have a licensing agreement. YouTube has one, Apple has one, Spotify has one, Tidal has one, Pandora has one, Shazam has one and so on.

Which is a shame because of all the advances made, the major labels still operate with a business model rooted in the past. The majors still pay about 10% royalties to artists for digital income. The 10% average rate is based on the era’s when the record companies produced a physical product like vinyl or CD, stored it in a warehouse and then transported that product to a brick and mortar store. Of course at that time all of these steps in the process where accounted for.

However in the digital age, there is no need to even produce a physical product like a vinyl or CD, however the labels are still short changing their artists. If the streaming rates paid to the labels were so bad, trust me, the majors and the RIAA would be the first ones screaming theft.

Streaming services pay 70% of their revenues to music rights holders. How much of that money gets passed on to musicians depends on the terms of their contracts with labels.

If you are on a major label roster you should have followed the Def Leppard route. Due to the disagreements they were having on the digital payment terms with their label, they refused to let their label put their catalogue on digital services.

However, in order to cash in on the “Rock Of Ages” movie and the sudden interest in “Pour Some Sugar On Me” and “Rock of Ages”, they re-recorded these songs with the current band and released digital “forgeries” (as Def Lep called em) of these classics. But they did it on their own terms.

And when Def Leppard’s music finally hit streaming services, with the rate that they wanted, well there is no one really complaining about the rate?  

How did it get like this?

Once upon a time, the artists had the power. Read any bio from the 70’s and you’ll see how painful the artists were for the labels to deal with. And the artists never did what the label wanted. The label wanted hits, they wrote noise. The label wanted more like the last album, the artist went in a different direction. Then in the Eighties, the labels stole the power back through economics. With the rise in revenue due to the CD, it made the labels mega rich powerhouses. And MTV was also making artists into platinum starts. And the artists just fell in line. Because they couldn’t handle seeing an executive flying private on the monies earned from artists.

But artists today, can go it alone. Because it is the connection the fan has with the artist which is valuable.

And if more people are paying for a subscription service, then the overall pool of money grows. So if the artist is in control of their rights, then they will be paid forever. If they signed their rights away to the label, then the label will get paid forever and they will pay the artist some.

But there is always the temptation of promised millions right now to sign away your rights forever.

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Music, My Stories, Stupidity, Treating Fans Like Shit

Release Day Friday Garbage

Spotify needs to sort out their algorithms. They really need to get serious music fans involved here.

Every week my Release Day Friday songs get hijacked by crap.

Check out these hip hop/dance artists the algorithm recommended today;

  •  M.O Flashy, Hurricane (because I follow the hard rock band Hurricane)
  • Dope (because I follow the hard rock band Dope)
  • Monteaga K, Asia (because I follow the supergroup Asia)
  • InQfive, Cresta, Heart (because I follow the band Heart)
  • Charlie Puth (because I have no idea)
  • Grant Burgess, Widowmaker (because I follow Dee Snider’s band Widowmaker)
  • Coby Ras, Rainbow (because I follow Richie Blackmore’s Rainbow)

From my understanding, these artists are collaborating with other artists called Hurricane, Asia, Heart, Widowmaker and Rainbow, who have the same names as artists I follow, but in different genres. Whatever the case, surely the algorithm can be tweaked to not screw up my feed with crap.

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

The More Things Stay The Same

Back in 1999, the record labels argued that they lost billions of dollars due to file sharing via Napster. They came up with this figure by saying that one file shared is the same as one lost sale. 20 years later, they are still exaggerating the same BS. And politicians get lobbied hard and suddenly there is legislation to support the record labels business models.

As internet speeds got faster, file sharing then started on movies and TV shows. Suddenly, politicians had even more money thrown at them to pass legislation from the movie studios. In democratic lands, ISP’s are forced to censor the internet, courtesy of the movie studios and music labels, which is no different to what dictatorship governments carry out on a daily basis. And when ISP’s don’t censor the internet, the movie studios and music labels take them to court for facilitating piracy. And while this is happening at the hands of the entertainment industry, the government themselves are stifling free speech by raiding the homes of reporters or by keeping eyes on the public through surveillance. ISP’s are also meant to store text messages, phone calls, web searches and tower pings on its customers.

So much for trusting the good guys.

Meanwhile, the music labels today are raking in billions courtesy of streaming (which started off as a legal alternative to peer to peer file sharing, which brought in $0). This shows, that if people are offered a legal alternative at a price which is right, they will take the legal option.

And those streaming billions were not there in the past. It took a tech company to create this revenue stream, while the record labels (the ones who should have been doing this) decided that the only way they could make money again is to get laws passed to protect old business sales model instead of innovating.

And an artist wants to have a label deal.

Why?

The labels don’t care about you and all they want is to lock up your copyright forever, because without the rights of songs, the labels have no power and if they have no power they cannot negotiate these huge licensing deals with streaming platforms.

Even the movie studios like Disney lobbied hard for laws to get passed to protect their old business models. Then Netflix, Hulu, HBO and Amazon came out with streaming services and brought in billions of dollars that were not there before. And now Disney is entering the streaming market. Enforcement doesn’t work but better legal alternatives do.

And the record labels still complain at the price of streaming. They reckon Spotify should charge more and also do away with the free tier, but are too gutless to bring out their own streaming platform and charge the money that they believe customers should pay. So they bash on Spotify or YouTube or Pandora.

And when politicians leave office, they get a nice cushy job for the very firms that lobbied them hard to introduce legislation in their favour. And this happens in democracy, which brings to mind the “One” video clip from Metallica and the scenes from the movie, “Johnny Got His Gun”.

Little Kid – When it comes my turn, will you want me to go?

Father – For democracy, any man would give his only begotten son.

We might want to re-think what the hell we are fighting for.

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

YouTube Manual Claims

If it’s not Spotify, it’s YouTube.

If it’s not YouTube, it’s Pandora.

If it’s not Pandora, it’s streaming.

If it’s not streaming, it’s free streaming.

If it’s not free streaming, it’s stream ripping.

If it’s not stream ripping it’s torrents.

There is always something or someone which is in the sights of the record labels and their association, the RIAA.

YouTube was criticized for not doing enough to control unlicensed uploads of movies and music. YouTube then provided the entertainment industries with ContentId, a way to claim videos as theirs that other people have uploaded. And by doing so, they could claim any monies paid on the video.

But with any automated system, it’s open to abuse and the labels did a great job abusing it. Legitimate content that had a few seconds of music (which is fair use) to illustrate their story or point in the video got taken down or claimed.

A birthday party video which parents shared that had music in the background got taken down or claimed.

And the uploader had no real rights to fight back. So the labels kept on abusing this process. They even took down their own legal content on occasions.

But after years of complaints, YouTube is finally doing something about it. Or is it.

The story of YouTube changing its policies has been getting publicity as YouTube being this evil monolith against creators but their changes only relate to the manual claims tool available to Copyright Owners. Most big artists are part of major labels and they use ContentID.

And the problematic and automatic ContentID is still the same and still open to the same abuse.

However YouTube has seen a new greedy trend emerge in manually claiming videos. These people claim a small snippet of a video uploaded to YouTube and by default transfer all monies from the YouTube video creator to the Copyright Claimant.

By changing the rules, YouTube is not stopping people from claiming these videos but they are asking for evidence and timestamps which somehow is pissing off the claimants.

And the claimants can still block the video.

To me, it’s much ado about nothing, it’s still the same old world and nothing much has changed. But it still doesn’t stop artists from Tweeting how YouTube is ripping artists off.

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