Tag Archives: recording industry

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 The musical star has been replaced by the tech star.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
Copyright, Music, My Stories, Piracy, Stupidity, Treating Fans Like Shit

If Money Is Not Filtering Down To The Artist, Whose Fault Is That?

There are still a lot of misguided people/entities in the recording industry that believe that they are immune to the changing times. Our world is constantly evolving. When will the recording industry accept that the landscape has changed.

Napster showed the recording industry what the fans of music want. The recording industry responded by shutting the service down. However, CD sales didn’t pick up as the recording industry would have hoped and what did happen was that the fans of music just went elsewhere. Suddenly there was Audiogalaxy, Limewire and KaZaA. Then came BitTorrent and The Pirate Bay.

In the end the customers just wanted free music. And even though Spotify and YouTube might give the illusion to the fan that music is free on their service, it is not. Spotify and YouTube do pay a large portion of their incomes to the rights holders.

Young people don’t purchase music the same way their parents and grandparents did. Access is more important than ownership. The car makers are being challenged at the moment as purchasing a car is no longer a rite of passage. The new housing market is being propped up by the older people, as young people are happy to rent or stay at home until their late thirties.

Spotify is a business based around access. This gives the fans greater choice whereas a purchase model takes away the choice of the fan and it makes them commit to which artist they would like to support. I remember walking into record stores, looking into my wallet to see how much cash I have and making decisions to maximise my cash with my purchases.

There are advantages and disadvantages to both. More choice means confusion and the fan just doesn’t commit to anything or they revert to trusted filters or playlists.

It is in the best interest of the recording industry and artists that streaming services gain traction. Otherwise the fans will just go elsewhere and if you take away the free tier of Spotify or YouTube, then what.

Once Napster went to a paying service, did fans start paying for music again?

Of course not.

What about Rhapsody? It has been trading for at least ten years and it has failed to get mass appeal.

The struggles that the recording industries are facing today were already quite clear in 1997 to people paying attention. The focus of sales as a success metric had to be tweaked and worked together with a smart business model. What we have here is an inability to adapt to a changing market.

Today’s world is much better for bands starting out today than in the past because they don’t need to win over the gatekeepers. They can find their own audience. They can create their own business models and make a living — unlike under the old system, where you either hit it big or you gave up and went back to your day job.

Can someone please explain how getting people to stop listening to free music magically makes them start buying music again?

What will do that, however, are smarter business models and Spotify is one link in the NEW MUSIC ECONOMY.

Shinedown just received a gold certification for their album “Amaryllis”. That means their album has moved over 500,000 units in the U.S. They moved that many units while their music was available on Spotify, YouTube, P2P and other services that offer free-tier models. They toured for over 12 months on the backs of that album. Their business model isn’t just about sales as a metric of success.

I seriously struggle to understand the long-standing debate between Spotify and artists. The debate should be between artists and the Record Labels. The debate should be between artists and the Publishers. Spotify pays the rights holders (labels and publishers) 70% of their income. From the other 30% they make, a certain percentage goes to the record labels who are shareholders of the company. The record labels had the power to negotiate a shareholding stake because of the amount of copyrights they have amassed from the artists on their rosters.

Quincy Jones posted on Facebook that “Spotify is not the enemy; piracy is the enemy”. Daniel Ek put that into dollar terms. Piracy could lead to higher concert attendances and merchandise sales, however in relation to the recording industry, piracy yields a ZERO return. Spotify at the moment has paid TWO BILLION dollars to labels, publishers and collecting societies for distribution to songwriters and recording artists.

As I have mentioned before, if that money is not flowing to the artists in a clear transparent way, then whose fault is that. The streaming services or the record labels.

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

Music Lives Because Of Sharing and Copying

We all want to first and foremost SHARE something. If you go to Facebook, people are sharing their day and their lives. Go to any internet page and you will see people sharing photos, writings, music, opinions, stories, etc. And all the things that we share are all free. We do it for free.

However, the recording industry will say that artists cannot survive without being paid. What the recording industry is saying is that the recording industry cannot survive if they are not getting paid. Artists NEED to create. And there are artists who WANT to make money from those creations. And a few of them actually CAN make money from their creations.

As always, there are lots of bands created every day. Only a few survive. Only a few of them make enough money to live. And only a very little few of them make a lot of money. That has always been the same. We know of Motley Crue, but how many bands were there in L.A at the time? How many of them have we never heard of? We know of Metallica, but how many bands were there in San Francisco at the time? How many of them have we never heard of? We know of Accept and Bonfire from Germany, but how many bands were there in Germany at the time? How many of them have we never heard of? Get my point.

The difference now is that musicians can reach many more people and they don’t need a whole industry for that, and the industry is frightened about it.

Music will always exist along with people’s need to share it. The fact that we have music alive today is because it was shared and copied from day dot.

Music is about beauty and beauty has no real set price. For super fans, that beauty could be worth thousands of dollars in music, merch and concert purchases. For others, the beauty could be worth a few dollars and for others that beauty could be worth just the enjoyment.

If we listen to a song and we like it, we will listen to more songs. We could purchase a CD, we could download an album, we could purchase a ticket to a show or a T-shirt. Hell, we could even fan fund the next recording. That is how the fans build social communities around their favourite acts. They chat about them to another person. Then they share the music that they love. And once upon a time, there was no law forbidding this. Information was exchanged freely. However when the entertainment industry kept on growing, and when they kept on getting the governments to pass laws to give the industry a monopoly, that is when the repression began.

I bet no one has heard about Paulo Coelho. He is one of the best-selling authors and a few years back he decided to create “The Pirate Coelho”, an non-official fan page that allows people to download the full texts of his books in different languages. And guess what happened. He started selling more books now than ever. Guess you need to balls to try something that is unknown.

In bands, this is a difficult card to play because band members very rarely see eye to eye, so as soon as something goes astray there will be one band member that will start throwing the blame at another band member.

 

 

 

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, Alternate Reality, Copyright, Music, My Stories, Piracy, Stupidity

Some Music Business Truths

Music Is Not Free

Look at the complex math that goes on here. The recording and publishing industries get a yearly license fee from the tech companies like Pandora, Spotify, Amazon, iTunes, Google and so on to have their music collections on the products that the tech companies offer.

Then the recording and publishing industries (via the music fan) get paid 70% for a download and 70% in royalty payments from a stream/view.

So with so much money trading between people how can people say that music is free.

How come no one is saying that APPS are free. We are all using a plethora of apps every day, and 99.9% of them are free. If anything we expect them to be free. And has that stopped people from creating new apps.

We Don’t Need Stronger Copyright Regulations To Encourage People To Create

Back in 1999, the RIAA said that Napster and piracy would stop people from creating new music because they would have no incentive to make music anymore. Then by 2005, the same argument shifted to Copyright Reform. The recording industry argued that copyright needed stronger enforcement provisions and no due process because if that didn’t happen no new music would be created.

Well guess what.

Just the opposite has happened.

More people are making more music than ever before. What we do need is for the Public Domain to be replenished again with music.

The CD

Apple has phased out the CD/DVD drive from their computers which means the CD be another niche product in the same way that vinyl is. For collectors only, because it turns out that the majority of music lovers just wanted access to music. It was never about ownership.

The MP3

It was a by-product of the CD. As the tech got better, the quality got better. Now it will become a by-product of streaming.

Streaming plus MP3

Putting my Nostradamus hat on, I predict that the streaming services will begin to offer MP3 downloads as part of a super-premium package. At the moment 45% of people still like to buy mp3’s. 45% of a three hundred million population in the US is a lot of people.

Anyone seen the adoption curve. It’s basically a bell curve that shows that 2.5% of people are innovators, 13.5% are early adopters, 34% are early majority, 34% are late majority and 16% are laggards. So in relation to streaming, it is safe to say that we are in the early majority phase right now. So if you are an artist or a record label or a tech company, how do you get the 50% plus of the late majority and the laggards to commit earlier. Offer them a product that meets their needs.

Record Labels

Still the best way to get your music heard as they have the money and the contacts. But they are still doing it wrong. They believe that a blitzkrieg publicity campaign will ensure success. The more we’re beaten over the head with something, the less likely we are to check it out.

Music Press

Save your money and don’t take the easy way out. Promote yourself personally. Work with people. Talk to people. There are no short cuts. In today’s world, the music press has never broken a band to the masses. The band has broken themselves with their music. If you make it great they will come.

Technology And Music

Fans of music want to listen to old songs however we have no desire to use an old computer like a Commodore 64 or an Amiga 500. However if both industries want to stay relevant they need to innovate and create something new and great on a regular basis. If you don’t you will be like Gene Simmons, slowly fading in the rear-view mirror and screaming to anyone who cares about the old gatekeeping model to return.

Concerts

Streaming concerts will never work as people still want to be there for the experience even though the sound quality might be terrible. As for the price of tickets, the acts are to blame. The prices I have paid range from $50 to $250 a ticket over the last two years. Guess who charged $250 a ticket. Yep it was the big acts from the Seventies and Eighties. Kiss, Motley Crue and Bon Jovi charged that.

Bands like Avenged Sevenfold, Trivium, In Flames, Five Finger Death Punch, Richie Sambora, Coheed and Cambria all charged around the $70 to $80 mark while Protest The Hero charged $50.

Know Your Fans

Great artists have made a living long before the advent of the phonograph and the recording industry. It’s because of patronage. Loyal fans will buy your super deluxe packaging, they will view your YouTube videos, they will stream your music on Spotify and they will spread the word for you. Do you know who they are? If you don’t then you are leaving money on the table.

Success And A Career

The odds of success are really low. So what can you do differently? You need to be determined as the bar is set really high. You have to be committed to the cause and honest. If you want a career you need to always pick up a new generation of people to discover you.

You want to know an upside to music piracy. Just have a look at all of the Classic Rock acts from the Seventies, Eighties and even Nineties doing big business on the live circuit and they are making way more money now than what they made at the peak of the fame when recording sales set the benchmark.

Def Leppard, Motley Crue, Twisted Sister, Slash, Evergrey, Europe, Whitesnake, Stryper, Machine Head, Dream Theater and Tesla have been seeing for the last decade, younger and younger people coming to their shows. They sing along and know all of the words. The audience base needs to be replenishment if you want a career.

And you need to have an opinion, which is hard to have in a society that is focused on being liked. However life is short and you have one voice. Use it.

Teaching

Imagine your favourite artist as your teacher. The personal interaction is what makes a difference. Playing a big show is one thing however teaching has a greater impact. You are giving someone more than just a good time, you’re helping someone grow, hopefully to the point that they will do the same for others.

And I am  not talking about guitar clinics or drum clinics. I am talking about being an actual music teacher on your time off. It could be a six to eight week course in the city you live in. Eight 30 minute lessons per day might seem like a waste of time to you but to someone else it could be a lifetime changing experience. So what are you waiting for, make the connection.

Standard
Copyright, Music, Piracy, Stupidity, Treating Fans Like Shit

I Want My M.P.3.

The last cinema movie I watched was “The Hobbit” back in December. I decided to give Captain America, and Spiderman a miss because the kids were little pests and I decided that even though I wanted to watch the movies, I wasn’t going to go without my kids.

Anyway, they have been good little boys, so I decided to have a movie weekend with them recently, while my wife stayed home with our two and a half-year old. So over the weekend, I had my son’s birthday party on Friday, had kids football on Saturday morning, watched “X-Men Days Of Future Past” on Saturday night with two of my boys, had more kids football on Sunday morning and then watched “Transformers – Age Of Extinction” on Sunday night with my boys again. Plus I took in the Brazil vs Chile game and the Colombia vs Uruguay game.

As is the norm with any Marvel movie these days, we hang around until the end credits scene appears and once that scene finished, there was a notice that said something like, 15,000 people contributed to the making of the movie. And I thought to myself, this is typical of the Movie Picture Association. Treating the people who legally watch a movie like criminals and hitting them with an anti-piracy statement.

It was like when I purchased a DVD at the start of the piracy epidemic and I was hit with the “You Wouldn’t Steal A Car” advertisement that could not be skipped. Yep, I am sure that the people who pirated the content kept those advertisements in their pirated release of the movie.

Everyone with a decent internet connection has dabbled in getting their music, TV or movie content via peer-to-peer downloading. Even the ones that work for the Copyright Corporations have illegally downloaded.

Because as successful as Spotify is in fighting piracy, or iTunes is at converting digital mp3 pirates into customers, people still get want their mp3’s for free courtesy of a favoured supplier. And it turns out that the pirate versions of the legal commercial offerings far surpass the simplicity and ease of use of what the Entertainment Industries offer up. That is because the pirate versions offer everything, in any format a user prefers and they do not geo block, so there is no way that a person will get the stupid “not available in your country” message.

Basically the amateur sharers of culture and knowledge are miles ahead of the Entertainment industry. The Pirate Bay is over ten years old. Name me one Record Label technological start-up that has reached a decade.

The kids of today just grab stuff from where it’s easiest. That is why YouTube got traction. While the record labels procrastinated about licensing Spotify, YouTube slipped under the radar. The only thing that YouTube is missing is the free mp3 version that fans of music still want.

Standard
A to Z of Making It, Classic Songs to Be Discovered, Music, My Stories

The New Nursery Rhymes

What child doesn’t love nursery rhymes? You know the ones “Humpty Dumpty”, “Rock A Bye Baby”, “Mary Had A Little Lamb”, etc.. One thing that is certain is that these tales have survived hundreds of years.

The recording industry tells us that we need more Copyright for music to thrive. But nursery rhymes survived all this time without the recording industry and copyright.

Nursery rhymes survived because they were passed on by word of mouth and taught to children before the rhymes got committed to print.

That word of mouth promotion is the pure essence of culture. That is how culture thrives. That is how bands become superstars and have careers.

Even those beautiful sounding nursery rhymes had their origins as protest songs or political songs. “Baa, Baa, Black Sheep” is about the Great Custom, a tax on wool that was introduced in 1275. “Three Blind Mice” was about the burning of three Protestants at the stake for heresy, in their attempt to overthrow Queen Bloody Mary.

Say bye-bye to the old and say hello to the new. Here is a list of the nursery rhymes that my two-year old loves.

“We’re Not Gonna Take It”

The ultimate song about standing up against authoritative figures that want to mold you and stifle your creativity. The video clip will be forever remembered. It’s part of pop culture history. The song tapped into the psyche of a whole generation of kids who felt pressured by parents and teachers to conform.

Back in the Eighties, the PMRC listed “We’re Not Gonna Take It” as number 7 on their filthy fifteen list. And the reason why it was on the list. Violence. Yep, Tipper Gore and her housewives found the song to be violent while millions upon millions of adolescent teens found it empowering.

“Cum On Feel The Noize”, “Rock and Roll”, “Rock N Roll All Nite” and “I Wanna Rock”

Four songs about letting your hair down. That is what rock and roll is all about.

We just want to rock.

“Livin On A Prayer” and “Dont Stop Believin”

Two songs about believing in yourself. And 25 plus years, people are still believing. Combined they have over 100 million streams.

“Eye Of The Tiger” and “Burning Heart”

Finding that inner animal when your back is against the wall. The “Rocky III” producers wanted to use “Another One Bites The Dust” however they could not get permission to use the song, so Sylvester Stallone hired Survivor to write an original song instead, which turned out to be “Eye Of The Tiger.”

“We Will Rock You”

The boom boom cha. It’s undeniable.

And the way these songs are getting passed on is via word of mouth, from father to sons. That is how culture rolls. So the recording industry better deal with it.

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

A Note To APRA AMCOS and Andrew Harris – It’s A Brave New World. Deal With It.

We live in a far better world when it comes to the consumption of entertainment products. As much as the RIAA, the Performing Rights Organisations and the labels still use the smokescreen piracy argument, we are as a matter of fact living in a post piracy world.

The user decides what he or she likes. The user decides how they will tell their friends about what the like. In most cases, it is via social media. And the recording industry is scared of this. It is scared because a social media account has more reach than their marketing efforts. They are scared because the audience is connected to one another and that they are out of the loop.

So when I read an opinion piece from an APRA representative that is all fluff and without any fact, it upsets me. It upsets me because it is misleading. It upsets me because as an APRA AMCOS member, that this line of thinking is the best that they could come up with. Seriously Andrew Harris needs to get his head out of the lies and really take a look at the world. You would expect that a person with a title of Principal Analyst at APRA AMCOS would actually do some analysis.

His whole piece is misleading. From the start to the end.

What streaming services like Spotify have shown is that people that did pirate and paid nothing for the content are now actually contributing to the recording business through the free-ad supported Spotify. It is putting money there where previously it didn’t exist.

There will always be people that will upload and download pirated content in the same way that people bootlegged copyright recordings in the pre-Internet days. Hell, the whole rock and roll movement that swept over the Communist Eastern Bloc in the Sixties’ was from bootlegged recordings.

Furthermore, Napster showed the recording business what music customers want. And 15 years later there still isn’t a legal version of what Napster created. If people want to download mp3’s for free, then allow them to do so legally. If the ads on the pirate sites generated so much money, then why doesn’t the recording industry cater to suit. Instead you get the recording industry with their larger acts locking up their content to capitalise on first week sales because that is still their mentality.

Seriously, since when did copyright infringement become such a dangerous crime to warrant monitoring and surveillance of people’s on line behaviours because the recording industry along with the movie industry are insistent that the privacy of people and their digital footprint needs to be stored and monitored in the name of protecting profits.

The truth is that the recording industry has not delivered on all of the demands of customers.

There are still customers that want to download high quality mp3’s for free. Cater to that market with free advertising and you will see more money enter the record labels pockets.

There are still customers that want to download uncompressed FLAC audio files for free. Cater to that market with free advertising and you will see more money enter the pockets of the record labels. I don’t know how much the artist will end up getting but one thing that is certain, is that the record labels are all cashed up.

And it is possible to compete with free. Free to air TV networks have competed for over 70 years.

Does that mean that sales of a physical product are gone? My answer is NO because fans of bands will always want that special unique deluxe package. The part that some labels like Rat Pak or artists like Coheed and Cambria get and other labels or artists don’t get is that the deluxe package in 2014 is more than a CD with a DVD. Those days are long gone.

In relation to APRA all you need to do is cast your mind back to 2008 when APRA supported an aggressive new copyright law in New Zealand including punishment of persons accused but not proven to be infringing copyright. This position was opposed by artists and APRA members but hey they still thought it was a good idea.

The thing with Andrew Harris and APRA AMCOS is that they get paid when they collect monies on behalf of the songwriters. And the thing is, even though streaming pays the rights holders which in most cases are the Record Labels, where does APRA AMCOS fit in all of this.

The AMCOS arm collects and distributes mechanical royalties for the reproduction of musical works in CD’s, music videos, DVD’s and digital downloads to name a few. So if people are streaming music, what does AMCOS collect? This is from APRA’s sustainability report published in October 2013.

Nowadays, new media accounts for almost 50% of AMCOS revenue, with licensing revenue from digital downloads totalling $26.7m in 2012/13. Revenue from subscription and ad-funded services more than doubled during the year, however, to $1.2m, and most of the world’s major players in that space – including Spotify, Google, Rdio and Deezer –now operate in Australia and NZ.

By comparison, traditional mechanical royalties from the sale of physical product accounted for only $10.5m of AMCOS revenue during 2012/13 – a decline of some $4m over the year – and a figure that is expected to decline further in the immediate future.

And that is the crux of the argument from APRA AMCOS which has been the same argument from the record labels for a long time. Still focused on what they get paid right now without any thought as to what a future with a hundred million paying streaming subscribers could bring to its business. Still focused on CD sales right now instead of a future with a billion subscribers who download mp3’s for free on ad supported legal websites.

It’s a brave new world out there and it is a shame that organisations that make their money from artists/songwriters are not doing their best to push innovation and in turn make more money for their members.

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

The Barrier Of Entry

It always pained me to talk about business models with the bands I was in, especially when the business started to change dramatically from the early two thousands.

The other members just believed that someone will find us, sign us up with millions and off we go recording and touring the world. They still had this view in 2010, when after another argument over business decisions, the band splintered apart.

So after I left, they signed a record deal with a small European label for the album that we just finished recording, and they had to pay $1500 Euro for that deal. WTF. After all of those arguments they still didn’t listen to me and they signed away my copyright to the songs that I had written to that label. Guess they just wanted to say to people that they had signed a record deal.

I contacted a lawyer who charged me $300 just for the consultation, however since the band was only a minor league band, it wasn’t worth pursuing in the courts and attempts at any mediation to have me set the record straight and get back my copyrights ended with further arguments and fisticuffs.

The songs in question are songs that I wrote for previous bands I was in and had them registered with a performing rights association years before my most recent band was even formed in 2008. So imagine my surprise when the performing rights association contacted me in 2010 saying that my ex band members have put in claims as songwriters. Even the bass player that joined after the album was finalised put in a claim for a 25% share of the songwriting.

The ugly truth of being in a band.

Just in case aliens are visiting the Earth right now, the “old record label business model” was to identify an artist, put them in the studio, release their recording on a format that a customer could take home and hope that it connects with an audience. That is what my ex-band mates wanted to happen to them in 2010.

This was the principle revenue stream for a very long time for the record labels. It was the sole purpose of their existence. Now that physical product is a loss leader. It has been reduced to an advertising tool to help the artist build a fan base and sell the live show.

Withholding an album from Spotify in the way that Coldplay or The Black Keys are doing is the wrong line of thinking in 2014. It’s back to the old paradigm of “windowing” and maximizing sales through physical retail or download stores first and then moving over to the streaming service when those sales die down. Windowing is still employed by the TV and Movie industry with zero degrees of success and a high rate of piracy.

However, Coldplay did release the singles to Spotify, so it’s no surprise that “Magic” has been streamed more than 55 million times on Spotify. To me, it seems that the recording industry is trying to re-create that “BARRIER OF ENTRY” around how they distribute new music today.

You see the music business once upon a time had a thing called “THE BARRIER OF ENTRY”. This barrier of entry was around which acts got picked up and which acts didn’t. This barrier of entry was also around which music was released and which music wasn’t.

Now the record labels could argue that this “barrier of entry” was the reason why the music coming out of their stables was of high quality. You know the model I am talking about, the one where the artist got lucky because they had some look that the label could exploit and by default they ended up getting a record label deal and the only way to hear all of their output was to buy an overpriced CD. And now those labels are not raking in the cash they used to get and they are blaming piracy.

Let’s look at three superstar acts today and how the show artists today, that the barrier of entry didn’t exist for them, because if you want it, you will do anything.

Metallica

“Kill Em All” was independently financed through independent record label Megaforce Records. Megaforce Records was founded in 1982 by Jon and Marsha Zazula solely to publish the first works of Metallica. The Zazula’s even had the Metallica guys living in their house because they believed in the music and the attitude.

Even Metallica’s “Ride the Lightning” album was recorded and originally released in 1984 through Megaforce Records. A few months later, Metallica signed with Elektra Records who re-released the album.

Motley Crue

The first album “Too Fast For Love” was independently financed via their own Leathur Records imprint in 1981. Leathur Records was a small imprint owned by the band and their original manager Allan Coffman. It was actually Coffman that coughed up the funds for it all.

Elektra Records signed the band the following year.

Five Finger Death Punch

“The Way Of The Fist” was recorded, produced and financed by the band members themselves. Once the album was done, they ended up getting a small independent deal to release the album. In its first week of release it did nothing, but four years later, it was certified GOLD for sales in the U.S.

Only after those bands had proven themselves as viable options did the major Record Labels commit to them. Because they saw dollars and profits. Nothing else.

What all of the bands above had was a product that was ingrained with a cultural movement.

Today, we have musicians promoting themselves on Facebook, Twitter or other social media outlets and in reality they still do not have an actual PRODUCT that connects. Getting 10,000 likes doesn’t mean 10,000 fans if no one is talking about your product or sharing what your product with others.

Don’t blame piracy, blame the lack of product because there is so much product out there today, we normally don’t go back to something we checked out once and didn’t like.

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

The Economy Of Attention Means….

Every corporation in power, when faced with the inevitabilities of competition, have a nasty habit of pushing backwards. They assume that by killing off any competition before it gets some momentum, that they have done enough to protect their business models. They assume that if they lobby or bribe hard enough and get even more draconian laws passed, it will give them more power to prevent any further problems down the line.

But change is eternal. It is progress and it cannot be stopped. Try as the corporations will, change always happen.

The recording industry built an empire decades ago based on the control of the media and the distribution chains. From time to time, different genres and social movements captured the public imagination and as is the norm, the record labels would swoop in, exploit the genre for what it’s worth, oversaturate the market with similar sounding bands and then when the market place was so diluted the labels would then move on to the new genre that is causing waves and repeat the whole cycle.

How quickly was PUNK abandoned for the NWOBHM. Then how quickly was the NWOBHM abandoned for the LA Glam Rock scene. How quickly was the rock scene abandoned and Grunge embraced. Then Grunge had a three-year reign at the top before it was abandoned for another genre.

Of course, that way of doing business was all based on the record labels controlling everything. So then comes a little thing called Napster and decades of record label control just blows up in their faces.

Teenage kids have now built a better system. The kids have built a system that sees artists having the opportunity to create and release music without gatekeeper approval. The kids have built a system that said to the record labels, we want music in these formats and we want it twenty-four seven.

And the system allows for the transitioning of power and control back to the audience and the actual creators. That is the problem the record labels have with the internet. The piracy is the argument they push forward, however the real problem is the lack of control and power they have over the distribution chain.

The audience will get the music they want in any way they want. Instead of putting up roadblocks, the record labels need to build bridges connecting everything together. Napster showed the recording industry that people want mp3’s to download and that they want to do it for free. Napster and the rise of peer-to-peer downloading showed the recording industry that people want to format shift their music files.

It should be the norm that in 2014, if a person still buys a physical CD or LP of the artists, that same person should be able to download that whole album via a download site that the artist controls. Coheed and Cambria did that with “The Afterman” releases. Amazon offers it via the AutoRip option however not all artists opt in.

It should be the norm that in 2014, if a person wants to download an MP3 rip of an album for free, they should be able to do it. If Pirate sites make so much money from advertisements, then why don’t the record labels provide the same service that they pirate sites provide and even reward those uploaders for continuing to spread culture instead of locking it up.

The audience wants to support the artist however they do not want to line the pockets of the record label bosses while the artist they love gets a pittance for their creations.

Let’s think about why record companies came into being. Printing records is expensive. Distributing music also used to be expensive. Hell, even recording used to be expensive.

Now, a single person can do all of this themselves for very little money.

Why do we even need record companies anymore?

Their sole purpose in this day and age is that they have the resources to still make artists visible. However Spotify showed the world that it can also break a super star. Lorde is a perfect example. She was the Queen of Streaming for over three months before the major label recording industry and the outdated Billboard charts came knocking.

And the economy of attention means that any artists that gets a chance to be heard above all the internet noise really has one shot to impress.

Standard