I remember waiting in line for an in store appearance of the band Sepultura at Utopia Records back when Utopia Records were situated on Clarence Street, Sydney. It was the early nineties and the in-store had the classic Sepultura line up. My cousin at that time (who was a drummer) had a real bashed in snare skin for Igor to sign, I had a couple of CD’s and a poster and the others all had various forms of music (LP’s or CD’s or drumsticks or guitar cases and so forth).
Sepultura was cult like popular then. They sat in an area that satisfied a few different markets. You had the “betrayed” original Metallica fans. You had fans of the original “thrash” movement. You had fans of the “Death Metal” market. You had fans of the “Extreme Metal Market”. And you had fans of the new “Groove Metal” market. Shredders appreciated them.
I remember asking one of the Utopia guys who was doing line management outside the building, why so many people came to Utopia on a daily basis just for chit-chat. He replied that they come to buy CD’s and I disagreed with him. I told him that nobody wakes up in the morning and says to themselves I need to spend $30 on a CD. We wake up in the morning and we say to ourselves, we want to hear the new Sepultura album, the new Motley Crue album and we want to hear it right now. And in order to hear that song, we HAD to buy a CD or an LP. Because radio sure wouldn’t play it.
So a bit of talking goes back and forth and the Utopia dude goes on to tell me I have no idea what I am talking about as Utopia sell hundreds of thousands CD’s a year.
The recording industry failed to realize that it existed not to sell records or CDs but simply to find the fastest, easiest way to let fans hear the song we wanted to hear. If they realised that, then they would have invented the iPod and iTunes. Instead history shows that a company not even in the music industry, did that instead. And now Apple makes billions of dollars selling music. So going back to my Utopia example, they are nowhere near the force it was back in the early to mid nineties and I wouldn’t be surprised if it shuts its doors eventually (which I hope never happens \:::/).
Apple has been selling tracks at the iTunes store since 2003. Apps, books, movies and TV shows came after. Yet, no one complained about the accounting and to my knowledge no one has sued Apple for unpaid royalties. Artists may complain about Apple taking a 30% cut, however that was the deal.
YouTube and Spotify have been streaming songs from about 2006 and 2008 respectively. Of course there are others on the market as well that offer streaming services like Pandora, Google, Deezer and so on. However, one thing these companies have done is they pay. They honour their deal. Which is the reverse of what the record labels did.
You know, those record labels that got sued by artists for their accounting practices, claiming they’ve been screwed over by the label. You know those record labels famous for paying late or paying at all. You know those record labels for never honouring a deal. You know those record labels that threatened to derail your career and you end up settling for less than you deserve.
What pisses me off is that while people complain about Spotify stream payments and YouTube stream payments and Pandora royalties, at least these techies are honest in their deals at this point in time. It just seems that the record labels who are the majority rights holders are not passing on the monies.
Because a deal is never a simple deal to the recording business. The labels don’t want simple. The labels don’t want royalties to be computerised because that would mean there is transparency and with transparency, profits would disappear. The major label business model is based on STEALING from the artist. That is why you have artists like Eminem, Dave Coverdale and others suing their labels for unpaid iTunes royalties. That is why you have artists suing their labels for unpaid monies due to creative accounting practices.
Believe me, if an CEO’s pay packet was suddenly short, he’d drop everything and do his best to get it right if the problem wasn’t immediately rectified. But if it’s the artist?