Tag Archives: rates

Copyright, Music, My Stories, Piracy

P.S.T (Piracy, Streaming and Touring)

All the talk in the media from the old gatekeepers is that piracy is bad for the artists or that Spotify’s free music-tier is bad for artists.

So can someone tell me how Motley Crue is playing in Abu Dhabi?

If we lived in the world of the old gatekeepers, the record labels would be in control and Motley Crue would have sold hundreds of thousands of albums (on a consistent basis) in the UAE before it was even considered to tour there.

However, in the internet age, it is a much different world.

Motley Crue suddenly has an audience in the UAE.

Is this audience courtesy of piracy or legit sales or legit streams?

There is a strong indication that Motley Crue’s UAE audience is due to piracy.

Do you know the Middle East is a huge region when it comes to illegal P2P downloading?

The following statement found in the book “Introduction to Private Security” by John Dempsey sums it up perfectly;

In Europe, Middle East, and Australia, P2P traffic consumes anywhere between 49 percent and 89 percent of all Internet traffic in the day. At night, it can spike up to an astonishing 95 percent.

You can do some further reading on countries where P2P piracy is very high at the following link.

Even though it is from 2011, the data tells us a few things.

Eastern/Central Europe, South America, Asia, Australia and the Middle East have high rates of P2P piracy as regions.

When you break it up to countries, China, Colombia, India, Russia, Malaysia, Turkey, Taiwan, Brazil, Saudi Arabia and Italy lead the way.

So let’s look at some of the recent tours bands have undertaken.

Metallica in 2011 did the “2011 Vacation Tour” that focused on Europe, South America, Asia and for the first time ever, they took in India.

In 2012, Metallica undertook the “European Black Album Tour” that focused solely on Europe.

In 2013, Metallica undertook the “Summer Tour 2013” which took in again Asia, Europe, South America along with North America.

In 2014, Metallica did the “Metallica by Request” tour which again took in Europe and South America.

Is it coincidence or shrewd planning that Metallica has taken in those markets. Hell, India is known as a nation of P2P downloaders, however it hasn’t stopped Metallica or Iron Maiden touring there.

Iron Maiden’s “The Final Frontier” tour (2010/11)  took in Eastern Europe, along with Singapore, Indonesia, Australia, South Korea, Japan, Mexico, Colombia, Peru, Brazil, Argentina, Chile and Puerto Rico.

The “Maiden England World Tour” (2013), took in Mexico, Brazil, Argentina, Paraguay, Chile and Eastern Europe again.

The “Somewhere Back In Time” tour  (2008/09) took in (apart from the North American and European markets) India, Australia, Japan, Mexico, Costa Rica, Colombia, Brazil, Argentina, Chile and Puerto Rico. Then on the second leg it took in Dubai (UAE), New Zealand, India (again), Mexico (again), Costa Rica (again), Venezuela, Colombia (again), Ecuador, Brazil (again), Chile (again), Peru, Argentina (again).

The Bon Jovi “Because We Can” tour from 2013 took in Brazil, Chile, Argentina, South Africa, Mexico, Japan, Australia, China, Malaysia, Singapore, China (again), Abu Dhabi (UAE) and Israel.

This was on top of the normal European and North American markets.

The “Bon Jovi Live” tour set to kick off in September 2015, takes in China, Malaysia, Singapore, Macau, Abu Dhabi (UAE) and Israel.

Five Finger Death Punch haven’t been around as long as Metallica, Iron Maiden or Bon Jovi, however it still hasn’t stopped them from hitting Japan, Singapore, Australia and New Zealand on their recent “Wrong Side Of Heaven” tour.

Avenged Sevenfold’s “Far and Middle East Tour” from 2012, took in Japan, Taiwan, Thailand, Singapore, Philippines, Malaysia and UAE.

Their “Hail To The King” from 2014 took in Brazil, Australia, Mexico, Chile and Argentina on top of the normal European and North American markets.

Their “Asian Tour 2015” will cover China, Taiwan, Thailand, Singapore, Malaysia, South Korea, Indonesia and Hong Kong.

Again the question must be asked, is it coincidence or shrewd planning. Streaming services can tell the bands which countries or even cities are streaming their songs and at what rates. Other firms out there like Music Metrics can tell bands, which countries or even cities are illegally downloading their music.

All of this data, once in the hands of a person that knows what to do with it, is a marketers dream.

Articles always point out that “pirates” are the biggest spenders and after seeing large bands hit markets with high piracy rates and still sell out shows, I would agree with that assertion.

Piracy, Streaming and Touring go hand in hand.

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Greed Will Kill The Streaming Star

I mentioned in an earlier post how the greed from the major record labels could end up killing streaming services. Since then, Swedish musicians are threatening to sue major labels Universal Music and Warner Music over streaming royalties. This is following a similar pattern from the lawsuits against the labels over iTunes sales and how those sales got paid back to the artists as royalties. Artists like Whitesnake, Def Leppard, Don Henley and Eminem led the way.

Even Billy Bragg stated the same via his Facebook account;
“These artists have identified that the problem lies with the major record labels rather than the streaming service and are taking action to get royalty rates that better reflect the costs involved in digital production and distribution. UK artists would be smart to follow suit.”

The major labels operate with a digital (streaming and mp3 sales) business model that is rooted in the past. The majors still pay a less than 10% royalty rate to artists for digital income. The 10% average rate is based on the age 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 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. By being silent on the matter means that the majors are making real good money from streaming.

Spotify pays 70% of its revenues to music rights holders. By the end of 2013, they expect that those payments will exceed $500m. How much of that money gets passed on to musicians depends on the terms of their contracts with labels. Maybe the RIAA should be lobbying hard to get a bill passed where streaming is seen as a license and seventy percent goes to the artist. But we will never see that, as the RIAA is there to protect the record labels, not the artists. However they claim in their rhetoric that they are working on behalf of the artist.

From a metal perspective, Century Media Records pulled their music from Spotify in August 2011, citing that physical sales have dropped drastically in all countries where Spotify is active. Then in July 2012, they opted back in. By February 2013, they released a Spotify app. What a turnabout by the label? Metal Blade pulled music of Spotify in September due to no real agreement in place.

If you are on a major label roster you should have followed the Def Leppard route. Due to disagreements they were having on the digital payment terms with their label, they then refused to let their label put their catalogue on digital services.
However, then 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 released digital “forgeries” of these classics and they released them on their own terms. Do you hear Def Leppard complaining about streaming and iTunes rates for those two songs? This year, they even released their “Hysteria” forgery.

Once upon a time, the artists had the power. Then in the Eighties, the labels stole it back. With the rise in revenue due to the CD, it made the labels mega rich powerhouses. Well it’s time for the artists to take back the power. Basically the labels without any artists are worth nothing. However, a lot of the artists just don’t see the big picture.

Those times of when recording was really profitable are over. Long gone. Recording revenues are shrinking. Streaming is trying to bring back some of it. If more and more people are paying for it the overall pool of money grows. These services need time to grow. However, as I mentioned previously, how much of that money gets passed on to musicians depends on the terms of their contracts with the labels?

Maybe Spotify and Deezer should become a label and start signing artists themselves as it is obvious that the major labels don’t care about their artists.

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