Tag Archives: Record Labels

A to Z of Making It, Music, My Stories

Distribution

Last year a couple of big corporation plays happened.

The Amazon/Hachette war was not about books. It was about a power play between Corporations. One Corporation has the distribution and the reach, while the other has the content. Somewhere in between are the writers who are paid sweet f.a while Hachette and Amazon rake in millions.

The YouTube/Independent Label war was not about music. It was about a power play between a new cultural gatekeeper and a union of labels that want to play the music game. As with the Amazon/Hachette war, one corporation has the distribution and the reach, while the other has the content. While the major labels got favourable licensing deals because they bring in most of the traffic, the independents got a pittance. Somewhere in between are the artists and the songwriters who are again paid sweet f.a while YouTube and the major labels rake in millions.

What does this tell us about the world?

It tells us that DISTRIBUTION IS KING. It was never content. Content has to go to where people can buy it, see it or hear it and distribution puts it there. However distribution as usual is controlled by corporations. The record labels used to control it and now the techies control it. Copyright infringement was never the issue for the record labels. Their real issue was that their control of the distribution chain was diminished or made obsolete by the internet.

As a by-product, creators may gain fame from the sales of their works however the money remains with the distributor. How do you think the major labels became major labels in the first place? It was due to distribution. Apple promotes itself as a manufacturer and a software maker however underneath all the front end marketing they make their money as a distributor.

So with different corporations controlling the distribution chain what does the mean for us?

The same as it always has. Corporations are not our friends as they are all about the bottom line and with the Internet every store is next door to each other and only a mouse click away. With so much competition only a select few survives.

Napster decimated the record stores. While ignorant media outlets trump up a small vinyl increase, YouTube and Spotify are increasing their power exponentially. That’s right, we have people celebrating the old vinyl format and overpaying while the digital distributors aren’t even paying attention as they grow bigger and bigger.

YouTube is the place we check out to try/sample everything. Google is the place we go to for search. Facebook is our digital home, showing the world what such great and happy lives we lead while under the surface it’s actually hard and depressing. Amazon is where we go and buy everything. Apple is still in front for the smartphone wars even though the Samsung products offer way more features. There is a war between various streaming services going on right now. Expect one to survive and at the moment Spotify is in the lead for music and Netflix for movies.

Is this good for us?

All we have done is replace one cultural gatekeeper with another. But the problem with this replacement is that we are also giving a large part of lives to these new cultural gatekeepers. Google has our search histories in waiting and target ads based on that. Amazon gives us recommendations based on our purchase and view history. Facebook has our private history and so on. We threw away our privacy like it was a piece of trash. We gave it away for free.

Are we really moving into a George Orwell Big Brother world?

We threw our hats in the rings with the techies because they stood for something once. But the truth is money corrupts everything. And our politicians are not going to stand up against the corporations because politics is all about money.

The ignorant still focus on the decline of CD’s and now MP3’s while trumping up the return of VINYL. The wannabe trash all end up on reality TV shows believing that it is a stepping stone to a career in the entertainment business. In all of this, the artists and the writers keep on getting hurt while the powerful fight over their creations. They are just pawns in their game.

Don’t get me wrong, I love a trustworthy shopfront that is reliable with their deliveries, however I don’t like a shopfront that can control everything. And that is the problem in the digital world. No one is looking out for the consumers, us. We believe that the techies have our best interests because so many of the things we do are free, like Facebook and Google and YouTube. However they are not looking out for us and the politicians we vote in are not looking out for us either as they are in bed with whoever contributes to their campaigns. And the big IT companies have no competitors at the moment.

We used to join together under artists however they are all now part of the corporate machine with so many deals crossing over it makes the mechanics of the brain look simple.

Why do you think Dodge and Motley Crue are in bed with each other?

Dodge has realised that Motley Crue fans will be more inclined to purchase high performing cars so the partnership will allow Dodge to distribute more vehicles so that they can make money.

So don’t believe everything you read. Distribution is the reason why corporations become monopolies and the truth is this; the corporation that controls the distribution chain wins.

Standard
Music, My Stories, Piracy

We Gravitate To What We Believe Is Popular

Artists like Sebastian Bach and Robb Flynn have asked the question, What does a Facebook like mean these days? In the words of Dark Helmet, “Absolutely Nothing”.

Music is a popularity contest. There is no doubt about that, however popularity doesn’t mean Facebook likes. What we do know is that likes are unreliable indicators of a band’s impact. The music business is all about connecting so many different dots to solve the puzzle. This is where we’ve arrived, the data-centric world and these raw statistics leave a lot of artists out. And they don’t like it.

The number one complaint in the music business is that artists can’t make any money. If you want to make money then make music that people want to listen to. Difficult but not impossible.

Revolutions occur in music all the time. Normally those revolutions happened in musical styles. However when it comes to the reporting side of things, well that was all controlled and monopolised by the recording industry.

The Billboard charts reported what was sold and what was played. All the parties involved lied and bribed each other to play certain records or to promote certain albums. This led to an era that if we believed that a song or album was popular we were more likely to buy it. Hell the same parties even controlled MTV.

Now everyone is looking at charts based on what we are listening.

Seen Ratt’s Spotify stats recently. Even though each album from the Eighties moved over a million units, what the fans really wanted was the great songs. And lucky for Ratt, each album had a great or decent song that would be used to market the album.

I want to go back to 1985. Twisted Sister released “Come Out And Play”. The fans of the band purchased it and played it death (maybe except for “Be Cruel To Your School” and “Leader Of The Pack”). However the album was deemed a commercial failure according to the reporting arms of the recording industry.

While the big albums “You Cant Stop Rock N Roll” and “Stay Hungry” are on Spotify, “Come Out And Play” is not available for streaming officially. But that is typical of the industry because Spotify is controlled by corporations and some of those corporations are the record labels. So as is the norm, those record labels think they know best when it comes to music. However on YouTube the whole album is there.

Why is it on YouTube?

Because the fans of the album put the music up. The fans are sharing their love of the album and people are listening to it because while fans have a history of music at their fingertips and can search for any artist they like the biggest playlist on Spotify is “Today’s Top Hits”. On the rock side, there is a rock playlist called “Rock Classics” that has close to 530,000 followers.

So with everything available under the sun, music fans still prefer to listen to what we think everyone else is hearing. Much like how we purchased albums in the Eighties based on what we thought everyone else was buying.

 

Standard
Copyright, Music, My Stories, Piracy, Stupidity

A Shutdown Equals New Technologies

On December 15, 1877 Thomas Edison patented the phonograph. This simple innovation would give rise to the Copyright Industries and the Recording Labels many years later. On December 10, 2014, the Pirate Bay went offline due to a police raid based on evidence gathered by the Copyright Industries. Meanwhile, P2P sharing has remained at the same levels before the The Pirate Bay shutdown.

Goes to show that the copyright industry really hasn’t learned nothing from the past fifteen years.

Napster came and challenged everything the recording labels and the copyright industry stood for. These industries had two options, embrace Napster or crush Napster. Napster was the sharing community cultural centre for people. If the industries embraced it, then they would have been at that centre. Instead they decided to crush it and Napster’s centralised server proved to be its Achilles heel.

What the Copyright industry failed to conceive was the post Napster generation who innovated even harder, and it is no coincidence that Bit Torrent and The Pirate Bay rose a few years after Napster and the cornerstone of their innovation was decentralisation.

When The Pirate Bay came to prominence people stopped developing because the site was good enough. Everyone became complacent. But now it is down and the same catch cry is heard across the world from developers.

“NEVER AGAIN”

Already the talk around the web is that these new P2P initiatives will protect privacy, free speech, encrypted trackers and block chain technology (Blocks in a block chain are ‘sealed’ with a cryptographic hash). The legacy of Napster will live on and so will the legacy of The Pirate Bay.

Because the funny thing here is that the recording industry had a chance to control digital music. In late 1993 two audiophile computer science students were fascinated by the code that shrunk huge sound files and they started testing compressed songs to see if they could spot the difference. In time, they could no longer tell the difference and that is when it was realised that CD’s could go online. This gave rise to the first mp3 website, the Internet Underground Music Archive (IUMA). The vision was that by putting songs online anyone could share their music online and potentially build an audience. Bands could upload and advertise their tunes, build their own pages, sell merchandise and, eventually, let people play tracks right from the site. Bands could choose whether to charge or give away their music, in order to build a following for live shows.

With all new technologies it didn’t take long for the record labels to notice. They recognized that the free flow of music would destroy their business. But they passed on the technology and in 1999 the music industry changed forever.

Napster showed the world  how easily one could share music. However, Napster did not last long, but it altered forever the way in which people consumed music and what they should pay.

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

Educate Yourself

It’s the same old debate. An artist puts their “heart and soul” or their “blood, sweat and tears” into a body of work only to see it end up on p2p sites, on YouTube unlicensed or just plainly ignored.

First thing first.

No artist is guaranteed to make any money from recorded music. This was the rule of thumb 50 years ago and it still is now. Once upon a time the record labels invested in an artist only after the artist invested in themselves and got a decent following/buzz happening. Today, the artists are investing in themselves and the record labels are sitting in the wings, watching and waiting for what they think is the sure bet.

So what you have is a lot of artists on independent labels or their own labels self-funding their recordings and press, without recognition. And they don’t like it. The thought that maybe they are just not good enough doesn’t even come into their thought process. Sort of like the stars of the past complaining that piracy killed the recording business. My answer to all of that was, no, piracy didn’t kill the recording business. The recording business like all great empires committed its own downfall. Since the price offered by record labels didn’t correspond with the value that consumers have for the music, the record labels were seen as an irrelevant part of the music industry. The adoption of the Internet and newer technologies lowered the value of music and consumers were willing to pay even less for music or in a lot of cases nothing at all.

Which leads me to Spotify.

On the one hand, we have Spotify users who are happy with the service and on the other hand we have content creators who are complaining about it.

And the story that has been doing the rounds for a while is that Spotify rips off artists.

NO, P2P rips off artists.

Take away Spotify or YouTube and then what does the artist have?

If they think that sales of recorded music would start to happen again, then they are mistaken. Napster got shut down and sales of recorded music still continued to decline. Spotify by the way pays more to the artist than YouTube does however it’s funny how people trump up high YouTube counts as a marketing coup, while a high Spotify stream count is seen as “I had a billion plays on Spotify and I only made X amount of dollars”.

Spotify pays, while P2P does not pay at all.

Sure, sales still continue, but for how long. Each year the sale numbers show a decline. Each year the numbers show an increase in streaming revenue. MP3 sellers are dying. In Australia, BigPond music is gone and iTunes is bleeding around the world. In some European markets, monies earned from streaming have overtaken monies earned from mp3 sales.

And yes the labels in the U.S do own a share of Spotify, however that income comes from the 30% that Spotify keeps from the artist royalty payments. It’s not a bad deal at all if you are a record label. They get a percentage cut of the 30% cut that Spotify gets and when Spotify pays them the other 70% as royalty payments, it looks like they more or less keep that as well. All this power that the record labels have amassed is due to the artists. The artists created the works and sold their copyrights for next to nothing, because at the time they sign a contract, no one has any idea how big a song could be.  The great rip off record label freight train just keeps on rolling on.

The truth is all artists need to be informed. Don’t take the spoon fed information as gospel. Do your own research. You’re responsible for educating yourself, all the info is online. There is no excuses these days.

And if you put the content behind a paywall, well just look at the newspapers to see how that turned out.

Streaming is here to stay.

Revenues will go up if the pot is increased however every artist needs to be aware that the barrier to entry is so low that artists today are competing with many more competitors plus they are also competing with the complete history of recorded music.

And we the fans are overwhelmed that we do the only thing we know, which is tune out and listen to the classics that we grew up with.

Standard
A to Z of Making It, Music, My Stories, Unsung Heroes

Six Degrees Of Separation – Marc Ferrari, Oni Logan and Rowan Robertson

Did you know that Marc Ferrari featured on Pantera’s “Power Metal” album that came out in 1988?

“Proud To Be Loud” was written by Marc Ferrari  and it was originally intended for Keel’s 1987 self-titled album. The song didn’t get used, however the Pantera guys heard the song back in 1985 when Keel was in town for a live performance and wanted to record it. Ferrari then went to Texas to produce the vocal on that track and he ended up playing rhythm guitar on the song and also lead guitar on another song called “We’ll Meet Again”.

Marc Ferrari then left Keel in February 1988, after the touring cycle ended for the self-titled album. After the tour, the band were about to change labels from MCA to Atlantic Records. With anything that is record company related, the band started getting pressure from the label to get that hit single like Bon Jovi. Ron Keel’s vision for the band was much different from Marc Ferrari’s vision and when a keyboard player was brought in, Marc Ferrari stepped out.

Then Ferrari discovered Oni Logan who at the time was working in Florida. Logan moved out to California to do some demos and showcases. The band was originally called Ferrari, then Crying Shame until they were told that they couldn’t use the name. Since they had a cool logo with the C and S intersecting, they tried to keep within the C and S theme and Cold Sweat came out of that.

Enter George Lynch.

Being a higher profile guitarist than Marc Ferrari, Logan was made an offer he couldn’t refuse and left Cold Sweat on the day they either entered the studio to record their debut album / or were meant to sign their major label contract (there are differing stories). Logan for his departure more or less slowed down the Cold Sweat project, nevertheless, he went off to create the excellent “Wicked Sensation” album with Lynch Mob that came out in 1990 on Elektra. The funny thing is that Cold Sweat’s debut “Break Out” which came out on MCA Records also came out the same year. However, the Lynch Mob album did far better than the Cold Sweat album.

Marc Ferrari then started working on another project called Medicine Wheel who recorded three records and had a decent following in Japan. The records were issued on a number of small independent labels in Germany and Japan. All of this happened between the years of 1992 and 1999.

Logan on the other hand was out of a job by 1991.

Enter Wendy Dio who suggested that Logan work with Dio guitarist Rowan Robertson. The “Lock Up The Wolves” era of Dio was put on hold while Ronnie James Dio reconnected with Tony Iommi for the “Dehumanizer” album that came out in 1992. The writing sessions between Logan and Robertson spawned the band Violets Demise.

Violets Demise managed to get a major record deal with Atlantic, however by the mid-nineties, the label money makers considered hard rock music not a commercially viable product, so the album that Violets Demise recorded with Alice In Chains producer Dave Jerden never saw the light of day officially, until 2002, when it was released as Logan/Robertson Revisited on Oni Logan’s website.

After disbanding Cold Sweat and while working with Medicine Wheel, Marc Ferrari started to get some of his songs placed in films and on TV, so he developed a business called MasterSource which is a music catalogue company that licenses its music primarily in films and on TV shows. And that gig along with the work that he does for Universal is still Ferrari’s main thing. Rather than waiting for things to happen Ferrari made things happen for himself.

So by the mid-nineties, while Logan took the big offer money deal from the Lynch camp to jump ship, it was actually Marc Ferrari that had a stable source of income and in general was better off. Just goes to show that the instant payola might be gratifying when it happens however in the long-term not so much.

Then by 1998, Logan was back with Lynch Mob and recording a demo (that ended up being released as the Syzygy EP on Lynch’s website) for the sole purpose of shopping to record labels to listen to and decide whether or not they wanted to sign the band. Meanwhile, Marc Ferrari also got back together with Ron Keel to finish and complete some of the unfinished tracks the band had lying around in the vault for the “Back In Action” album however his main gig was and is the MasterSource business. While Logan was involved in an EP to obtain a deal, Ferrari was involved in a full album release on an independent Canadian label.

Meanwhile Rowan Robertson fell into a slump after the demise of Violet Demise. However by 1998, he got an audition for a band called VAST. If you haven’t heard the excellent song “Touched” from the also excellent “Visual Audio Sensory Theater” that came in 1998, then you need to give it a listen.  The best way to explain VAST is Enigma meets Metallica meets The Beatles. Even though VAST was seen as Jon Crosby’s project, it was also seen as Robertson’s entry back into the music industry.

Comparing all three, by 1998, Marc Ferrari was way better off. He didn’t have the high-profile gig as Dio’s lead guitarist, nor was he as high-profile as George Lynch however what he did do was create for himself a position in the music business. He created opportunities when they didn’t exist and he diversified, focusing on licensing opportunities and music for television, films and games.

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

Music Today: Hundreds Of Different Streams That All Flow Into One

Techies are the new rock groups. A lot of people have been saying it for a long time and recently even Bono got into it.

Instead of people forming bands, they are forming start-ups. The musical star has been replaced by the tech star.

At least in tech there is a pretty clear distinction as to what is paid. The recording industry still make royalty payments creatively. Taylor Swift is on schedule to earn $6 million from Spotify this year however she reckons Spotify doesn’t pay enough and her label head reckons Spotify makes a mockery of the SuperFan because the music is free on the site. In addition, her label reckons that Spotify is full of shit when it comes to the $6 million dollar amount. Those poor confused souls.

When did a payment of $6 million dollars to the rights holders = free/zero income? I must have been asleep at the wheel when that went down. Just because the user streams the music for free, it doesn’t mean that Spotify is not paying the rights holder. Accounting is the bedrock of the techies, however in music it is a different story.

Seriously how much extra did Coldplay make by windowing their “Ghost Stories” release and keeping it from Spotify. All they did was drive people to YouTube that had a mixture of ad-supported streams (which meant income) and no ad-supported streams (which meant NO income). P2P traffic also did wonders.

What the recording industry needs is transparency however what they still deal with is deceit, because in music everybody’s a street hustler who demands to get paid at every stop along the way. It’s short term thinking and it does not help the artist at all because there is still a lot of bastardry going on. The Majors are all concerned about pushing Spotify to an IPO which might be something to do with the fact that they own a piece of Spotify. And how does that relate back to the artist.

It looks like labels screwing artists is still pretty relevant today. Nothing really changes in that regard, however what has changed is that the fans of music are inundated with new album releases.

Here’s the new Slipknot. Here’s Black Veil Brides. Here’s Audrey Horne. Here’s Machine Head. Here’s Disciple. Here’s Evergrey. Here’s Nickelback. Here’s Otherwise. Here’s Sanctuary and Sixx AM. Here’s Wovenwar. Here’s a band that I haven’t heard off that I should hear.

And that has been in the last few months.

Add to that some of my favourites in the last 12 months or more from Avenged Sevenfold, Black Label Society, Five Finger Death Punch, I Am Giant, Trivium, Stryper, The Kindred and Digital Summer and you get the idea of my time being eaten up trying to catch up. And I am not alone.

That is why we want a smaller amount of music more regularly but of high quality. We all want to pay attention longer to our favourite artists and our artists are only as good as their last album. If they don’t continue to deliver then expect their career to fade away.

I remember being bored with the same damn records to play because I couldn’t afford any others. Now with so much choice I don’t know if I should try to hear something new or stick to the same damn records of yesteryear. To say that today’s world is overloaded is an understatement.

Maybe there was some madness method to Thom Yorke’s BitTorrent bundle initiative. 40 million people use BitTorrent each day and overall it has over 170 million users. If 1 percent of that user base pays for it, it is a win. Moby’s BitTorrent bundle from 2013 was downloaded 8.9m times in comparison.

That is a win that Moby would have seen in other forms of income because that is the music industry today. Hundreds of different streams that all add to the larger pool.

Standard
A to Z of Making It, Music, My Stories, Unsung Heroes

We Can Learn A Lot From History

I just finished reading Stephen Pearcy: Ratt and Roll. I don’t recommend it. It is the typical I got laid a thousand times and did drugs a thousand times ego trip. The disintegration of Ratt and the tough times of the Nineties is glossed over. The way the songs came together, and the influences behind them is not even mentioned.  Like all bios, you get the usual ode to trying to make it and doing whatever to takes to make it. All of the bios show their main characters as driven and determined.

Anyway it got me thinking about the Eighties and it seems that we can learn a lot from history. Back then it was Michael Jackson’s “Thriller” and Bruce Springsteen’s “Born In The USA” that saved the recording industry from their self-inflicted recession. In addition, a certain technology called “Compact Disc” would bring riches that the labels had never seen before.

In 2014, it is streaming and digital services like Spotify, Google Play, YouTube, iTunes and Pandora that are saving the recording industry from their self-inflicted downfall. Expect a twenty year plus reign of streaming services which will bring riches that the labels had never seen before and then keep your eyes open for a new style of Napster to hit the digital services the same way it hit the recording industry. In the end, every monopoly falls.

In 1983, a band from England called Def Leppard showed the world what can be done when rock and metal is merged with POP. “Pyromania” was the result. In 2013, a band from Denmark called Volbeat is showing the world what can be done when rock and metal is merged with country and rockabilly. “Beyond Heaven, Above Hell” and “Outlaw Gentlemen and Shady Ladies” are the results and a massive victory lap for the band.

The Eighties had a whole cultural movement form around the metal and rock bands. Today, those cultural movements are around technologies and TV shows like “Game Of Thrones” and “The Walking Dead”.

In 1983, a few new players entered the metal and rock scene in Quiet Riot with their number 1 album “Metal Health” and Metallica with their speed metal “Kill Em All” album. Dokken was also releasing its first album called “Breaking The Chains”. In 1984, a band from New Jersey called Bon Jovi released their self titled debut, along with an L.A band called Stryper and their “The Yellow and Black Attack” and a band from Seattle called Queensryche issued “The Warning”. Meanwhile Quiet Riot, Metallica and Dokken all followed up their debut albums with album number 2 in “Condition Critical”, “Ride The Lightning” and “Tooth N Nail”. Actually for Quiet Riot it was album number 4 if you count the first two releases that had Randy Rhoads. It was the norm that bands would release new music on a yearly basis and we have come full circle again.

In 2013, Black Veil Brides released “Wretched and Divine: The Story Of The Wild Ones” and followed up that album in 2014 with their self-titled fourth album. Audrey Horne also released “Youngblood” in 2013 and in 2014 they released “Pure Heavy”. Buckcherry released “Confessions” in 2013 and “F***” in 2014. Adrenaline Mob released “Coverta” in 2013 and “Men of Honour” in 2014.

In 1983, Marillion, a progressive rock band from England started to the rounds as well with a “Script For A Jester’s Tear” and they followed it up with “Fugazi” in 1984. In 2013, Tesseract, a progressive rock back from England is starting to make some in roads with “Altered State”. Both bands have issues with lead singers.

In 1983, Ronnie James Dio broke away from the band format and released his first solo record in “Holy Diver”. In 2013, David Draiman broke away from the band format and formed a solo band called Device. Two of his other band members in Disturbed also released Fight Or Flight with the singer from Evans Blue.

Established artists like Kiss had a resurrection in 1983 with the Vinnie Vincent influenced “Lick It Up” album and ZZ Top also set the charts on fire with their synth heavy “Eliminator”. In 2014, established artists like Everygrey, Europe, Protest The Hero, Volbeat, Slash, Alter Bridge and Zakk Wylde are all experiencing up swings in popularity.

But in the end, no one knows what will connect with audiences. That is the beauty of music. History will show us trends and cultural movements that come about from music, but there is no way to predict what will connect and wouldn’t.

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

Everyone Is Building Their Business On The Backs Of Artists

So all the news outlets are glossing over the 1.3 million sales of the new Taylor Swift album. As is the norm everyone in the mainstream media is trumping up the irrelevant and they are totally ignorant to the reality that exists in the music business. The reality is that more and more people are using streaming services.

So where do all of the profits go to from the 1.3 million sales. There is a common viewpoint put forward by the record labels that the music industry (which is funny how they refer to the recording industry as the music industry) is in dire straits. They blame piracy. The artists blame streaming services even though Spotify pays 70% of every dollar they get to the record labels and the music publishers. Pandora pays about 55% to 60% of every dollar they get to the record labels and the publishers.

In music, the deals between record labels and artists have two levels; a) a royalty percentage for recorded music that is sold like a CD, a VINYL album or a digital download and b) a different percentage for music that is licensed for use in a film, and other types of promotions like commercials, sporting events and so forth.

Different artists have different deals. Imagine being an artist, and the retailers get 30% of your music while the record labels keep more than 80% of the money they receive.

In the digital world, many artists like Enimen and Dave Coverdale have successfully argued that digital services are being licensed by labels and thus the licensed royalty amount should apply. Def Leppard couldn’t agree with their label and that is why their output is not on digital services. However we have current forgeries that the Def Leppard band re-recorded.

Retailers have built their business on the backs of artists. The record labels have built their business on the backs of artists. The live tour promoters have built their businesses on the backs of artists. The music publishers/rights organisations have built their business on the backs of artists. Radio has built its business on the backs of artists. It looks like everyone is building their business on the backs of artists except the artists themselves.

And how does all of this tie in to what fans of music want.

A digital music study that came out of the Nordic countries is being forgotten at this moment in time. For the uninitiated, the Nordic countries Denmark, Sweden, Norway and Finland are the earliest adopters of streaming services in a mainstream way and their growth of their recording industry is seen as a model for the rest of the world to follow.

So what we have is Spotify who has an estimated 7 million users in Denmark, Norway, Finland and Sweden. This is about 18% of Spotify’s worldwide reach. The takeaway is that 78% of Nordic Internet users are digital music consumers (an estimated 13.8 million), having used services such as YouTube, Spotify, Wimp or iTunes for accessing music content. Of those 78%, 20% said they had paid for some form of digital music, either downloads or streaming. YouTube was the most popular.

Fans of music like to listen to music for free and with each generation growing up this is more prevalent. However all of those organisations that built their businesses on the backs of music sales don’t like it. Got to give it to the technology retailers for adapting to an ever-changing marketplace. iTunes downloads are down however Apple are preparing for it with their own streaming service. Spotify is now offering one family account, which makes total sense, so expect Spotify’s premium user base to rise.

It’s a brave new fragmented world and it will be for a few more years, until streaming services in the large North American markets take a real foothold. Then watch out for a new battle to begin between artist and record label for unpaid monies.

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

The Changing Times and The Record Label Business Model of STEALING From The Artist.

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?

Standard