A to Z of Making It, Copyright, Music, My Stories, Piracy

Apple

In order to lead you need to stay ahead of the game. In order to stay ahead you need to innovate/create.

Apple is one such company that is at the crossroads. The iTunes store is seeing a decrease in MP3 sales. Their first foray into streaming, iTunes radio never really took off.

The move into the streaming market dominated by Spotify and YouTube with the Beats acquisition is still at the starting gate and the birth of new products since the death of Steve Jobs has stagnated , however the iWatch is being hyped up by critics and bloggers as a savior.

But what people are failing to see is what Apple is doing behind the scenes. The acquisition of smaller companies into the Apple network forms a picture of a large corporation gearing up to control more of our daily lives.

Let’s not kid ourselves here. IT companies are billion dollar industries because of the data they harvest from us, the people. It is that data that provides a dashboard on how to market a product and to whom. And Apple are gearing up for a mammoth shake on the data front.

They have purchased Semetric, the U.K company behind Musicmetric. For those that don’t know, Musicmetric is a web service that analyses data on the internet around sales of music, P2P downloads, YouTube views, streams, social networks and sells that data to record labels, artists and others.

I saw Musicmetric as a great tool and it’s most valuable asset is that it looks at BitTorrent (p2P) downloads (both legal and illegal). It could tell an artist which countries and cities are illegally downloading their music.

To me, these are fans that can be monetised via live performances, provided the artist has the means to get there. For newer acts it tells them where their music is popular even though they don’t see that popularity translate into sales because in the end a fan base is a fan base. It has been proven that at some time down the line these fans will commit financially to the artist.

Which is a shame because I cant see how Musicmetric will stick around as a standalone service anymore.

Apple has gained a key in-house tool that it can use to track  sales and streams within iTunes alongside social networking stats. But the reason why Musicmetric worked is that it also included Spotify and YouTube activity into its dashboard, however the chances of those two entities remaining with Musicmetric (now that it is owned by Apple) seem to be slim.

Another interesting piece I came across is Apple’s latest patent, which states that it will allow people to legally share music and videos with friends as long as those users have a license. As the Torrentfreak article points out;

While “legalized P2P sharing” may sound appealing, in theory it’s actually quite restrictive. The idea introduces a new layer of content protection which means that the files in question can only be played on “trusted client software.” This means that transferring files between devices is only possible if these support Apple’s licensing scheme. That’s actually a step backwards from the DRM-free music that’s sold in most stores today.

Interesting.

So what we have is a company that has purchased a data analytics company that tracks illegal P2P sharing activity as part of its dashboard and they have just been given a patent to legalize P2P sharing amongst its users provided they have a license.

But seriously, Napster came out close to 16 years ago. Yes, 16 is the number. That is close to 6000 days ago and the recording industries have done nothing to give the fans of music anything that remotely resembles Napster. Meanwhile, technology companies have done all of the innovating.

To me this is another attempt at control and restriction and that is a bad thing.

These new tools will most probably be packaged in with their Beats music service and if my reading between the lines is correct, Beats Music will also be a P2p protocol sharing service provided the user has a license which will probably come automatically with the purchase of an Apple product.

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A to Z of Making It, Music, My Stories, Piracy

The Lies Of The Beautiful Record Labels And The RIAA

During the recorded music industries heyday, there was this widespread idea, sort of like an unwritten law, that we (the fans of music) could purchase music and own it, the same way we purchased and owned the toaster and any other commodity.

Of course when it comes to music, that was never the case. What the music fans actually purchased was a non-transferable license to listen to the music under very specific and strict conditions. Nothing else was transferred to us with our expensive $30 purchase of a CD, other than the right to enjoy the music in private, over and over again.

So what do we have now. We have sales of music falling. Actually they have been falling for some time. The RIAA and the record labels are attributing this to piracy alone, linking the decline of sales with the increase of P2P file sharing usage.

So for the RIAA and the Record Labels, plus some misguided artists, it is simple, these two events correlate, so it implies that one is causing the other to move.

The thought that fans of music have changed the way they consume music doesn’t compute for the Majors and their association.

The arrival of iTunes and the chance to cherry pick what we want rather than complete albums is a pretty good indication that revenue streams would reduce. Instead of spending money on an expensive shiny piece of plastic for two songs, we could now just download those two songs.

The arrival of YouTube and streaming services have also put a dent into the traditional sales model. Of course, piracy does play its part, however with the increase in people attending concerts and festivals, one needs to ask the question, did piracy assist in this?

Watch the Iron Maiden doco, Flight 666. Nicko McBrian talks about not selling an album in Costa Rica, however they have sold out the local sports stadium. Twisted Sister haven’t released any new music, however in Europe they have a massive fan base that includes both old and young. Did piracy cause this?

The arrival of many platforms that allow DIY bands to release has caused a flood of new music to enter the music business. Competition is now at an all-time high.

What about the price of music? Normally if demand for a certain product drops, the prices for that product fall as well, to reflect the lower demand. It is simple economics. So what do the record labels do? They maintain the high prices so that they can maximise profits. So the recording industry is holding on to high price points and they blame piracy in the meantime for the decline in sales.

So if people are purchasing less music or illegally downloading content, how is this effecting the income of artists? Do artists still have an incentive to create music.

For starters, the majority of artists do not get into music to be millionaires. They get in to music because it satisfies a basic human need to be creative.

In relation to less incentive, this doesn’t seem to be the case. There is so much music hitting the market that no one has enough time to hear it all. In addition, if the artists is doing the live circuit, incomes in this arena are increasing. Some artists that don’t sell a lot sure get a lot of people into their shows.

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