Tag Archives: recoup

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

The Real Copyright Abusers Are The Major Record Labels

The major Record Labels own the majority of copyrights and don’t they love to overvalue their content. As soon as a product is seen making money or drawing an audience from music, the big copyright owners swoop in. And when they do swoop in a few things begin to happen;

The Product will get threatened. Think of Napster, Limewire, AudioGalaxy and MegaUpload. All gone. Pandora is constantly battling against rates of payments as they struggle to make a profit. Spotify, in order to trade in the U.S had to give the major labels a share of the company. It was either that or the labels would not license them. Google is always blamed for linking to pirated content.

The Product will get litigated into non-existenance. Mp3.com, hotfile, isohunt are three that come to mind.

The Product will move on to different areas of innovation.

The Product will get saturated with content from the copyright industries that a lot of the people who flocked to the product in the first place will just move on to another product.

Like MySpace.

MySpace was once a haven for finding out independent/underground music. The whole culture and market reach of MySpace was built around this premise. Of course MySpace got so popular that it was inevitable that the major legacy players would take notice. Eventually, MySpace was littered with content from the major players. Ads of major label artists popped up everywhere and all of the independent content that made MySpace popular got pushed further into the background, making it harder to find.

Eventually those people who made MySpace popular started to abandon the site in droves, moving onto other social media sites, like Facebook and YouTube.

Anyone heard this quote from Robert A. Heinlein.

“There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is not supported by statute nor common law. Neither individuals nor corporations have any right to come into court and ask that the clock of history be stopped, or turned back.”

Does it all sound eerily familiar? Does it sound like the attitude of the content industries for the last 40 years?

The MPAA and RIAA have never stopped lobbying the Government to pass laws that will protect their business models. Even Irving Azoff still blames technology for diminishing the music business profits instead of blaming the real devil, which is the GREED of the POWER PLAYERS. Someone like Azoff had a career on the backs of music that artists created.

The blame should be at the way the Record Labels/RIAA treated their artists and the fans of the artist.

The blame should be in the way the Labels creatively structured deals to ensure that most musicians never get paid a real dime.

Yes, back when the Record Labels controlled everything, artists are given advances, however the real term used should have been “loans on terrible repayment rates” in which the labels would add-on every expense that needs to be “paid back”.

Very few musicians ever “recouped” even after the labels made back many times what they actually gave the artists.

RATT sold 7.5 million albums in the U.S alone which meant total gross sales of $75 million. Even if the label gave them $1 million dollar advances for each album, that is $5 million the label would have spent on the band and in the process the Label made $70 million. I bet if the financials are made available, it would show Ratt as a band that still hasn’t recouped.

There is a post over at Techdirt that covers this in a bit more depth. The following comments are from Tim Quirk and how record label accounting relates to his band, Too Much Joy (TMJ):

A word here about that unrecouped balance, for those uninitiated in the complex mechanics of major label accounting. While our royalty statement shows Too Much Joy in the red with Warner Bros. (now by only $395,214.71 after that $62.47 digital windfall), this doesn’t mean Warner “lost” nearly $400,000 on the band. That’s how much they spent on us, and we don’t see any royalty checks until it’s paid back, but it doesn’t get paid back out of the full price of every album sold. It gets paid back out of the band’s share of every album sold, which is roughly 10% of the retail price. So, using round numbers to make the math as easy as possible to understand, let’s say Warner Bros. spent something like $450,000 total on TMJ. If Warner sold 15,000 copies of each of the three TMJ records they released at a wholesale price of $10 each, they would have earned back the $450,000. But if those records were retailing for $15, TMJ would have only paid back $67,500, and our statement would show an unrecouped balance of $382,500.

So going back to my Ratt example, it is a well-known fact that artist in the Eighties signed contracts that gave them a 5% cut of the album sold. Do the math? I am pretty sure it will come out that Ratt didn’t recoup.

As the Techdirt post pointed out;

“In other words, musicians don’t get paid anything in most cases, while the labels can earn a tidy profit for years and years, still insisting the band hasn’t recouped. It’s why a band can sell a million albums and still owe $500,000.”

The whole doctrine of “getting the government and the courts to guarantee profits in the future” is the reason why copyright trolls like Rightscorp have come into existence. It has also given rise to law enforcement working for the content industries as a pseudo “Copyright Police”, which in reality was always a civil matter, never a criminal matter.

In the end, the real copyright infringers and abusers are the actual Record Labels.

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

It’s Not The Media’s Job To Keep Artists In The Public Eye. The Difference Between The Past and The Present.

By September 1986, Yngwie Malmsteen had released Trilogy. As a solo artist that was his third long player in the same amount of years. In total, if you include the Steeler and Alcatrazz releases, that made it six long players in four years. You see, back in the Eighties, it was all about the music. That was the only way that artists could get traction back then. It was Malmsteen’s job to keep himself in the public eye.

So what has changed in 2013. Nothing really. It still is about the music. This is what every artist should be doing in this day and age. Releasing music and doing it frequently.

A big difference between the Eighties and Now is the label support. Back in the Eighties, a label would front the money for recording and tour support, with a view to recoup those monies through sales of the long players. It was a deal stacked in the record labels favour. Today, the labels are all about the safe bet, so even though the recording costs are at super lows, it is expected that the artists would front this cost.

Continuing with the Malmsteen example, he released “Odyssey” in 1988 with Joe Lynn Turner on vocals. The album became Malmsteen’s most successful album of his career. As soon as he became commercially successful, he fired the singer and started over again.

When shredding and neo-classical went out of fashion in the record label controlled U.S market, Malmsteen still forged a successful career in Europe and Japan during the 1990’s. He remained true to himself and he never sold out to cash in. People might disagree with his comments, I sure do, however when everyone is trying so hard to be liked by all, fans never really get to see the artist beneath the silt.

The world is going through a revolution and it is all about intelligence. That is why when an artist makes a remark, one side of the Internet calls it uneducated. That is why people jumped on Malmsteen’s remarks about piracy.

However it’s not about winning every time. The metal record labels and the artists they sign are still clueless. If the first album is not a success, the label just lets them go. They are playing it safe. What the labels should be doing is allowing the artist they sign to take multiple chances. The artist is not going to take risks if they have only one chance with the Record Label.

That is why all the risk takers in metal music are the outliers, the DIY’ers. Then when they break through, the majors come knocking. Look at the Djent movement. It started in forums and soundboards back in 2004 and just kept on growing. By 2009, most of the labels had a Djent artist on their roster.

Look at Machine Head during 2002 and 2003, financing their own sessions and recording of “Through The Ashes of Empires.” When the album started to get traction, Roadrunner U.S came knocking again.

Look at the TV networks from the Eighties. You had 3 to 4 networks, and they all played it safe. In 2013, you have hundreds of TV channels, all looking for an edge. They are all looking for content, and they are giving cash to talented people to deliver. Netflix is a perfect example of taking risks with innovation and content.

If the record labels want listeners, they need to let artists push the envelope and try some stuff out.

If an artist wants listeners, they need to understand that there is just too much information out there. That is why there are over 4 million songs on Spotify that haven’t even been heard yet. No matter how big a story artists have, they will be pulled under by all the information coming down the cyber pipeline, if their music is not great.

Suddenly the album that the artist worked so hard for is in the rear view mirror, 3 to 4 weeks after it’s been released. The only way that sales and charts matter today, is that it shows all the new product released. That is what the public wants. Something new.

Here today, gone tomorrow. Artists need to create constantly now. That’s the only way you can stay in the public eye, in people’s minds. Robb Flynn is doing this with his journals while the world waits for the album. An artist doesn’t want to be forgotten and the album format unfortunately works against the artist today. Somehow other musicians just don’t know it. They want someone else to do the work for them. They don’t want to try new ways and the new way is to bond with the fans. Robb Flynn gets it.

It’s not the media’s job to keep him in the public eye, it’s HIS!

The number one thing a fan wants is more music by their favourite act.

Dream Theater released an album for a new audience. It is the only thing that John Petrucci talked about. “If someone is hearing the band for the first time” was the catch cry in all the press releases. Forget about the new audience, focus on the old. The old will sell the artist to the new. It’s done through music and connection.

If the artist thinks that they gain traction by hanging with the record label, then they are idiots. They are better off blogging, responding on Facebook, spreading news on Twitter. However, there is a still a misconception that getting your story in the newspaper or in the magazines is a sign of traction. Forget that. When a magazine comes out with a three-month lead time, it’s already old news. The magazine is dead on arrival. No one cares about the stories written by the PR/marketing team of the artist.

The way I see it, if an artist is making an album-length statement, they need to have a story or a concept around it. Otherwise ten tracks strung together is not a concept. If you look at society in general, there is almost no place to buy a CD. The world is moving to streaming. Via mp3’s, people will still download/ cherry pick their favourites and there is nothing that artists can do about it.

Nikki Sixx asked his fans to immerse themselves in the whole album experience. In order for them to do, the album needs to be phenomenal, otherwise the fans will just cherry pick the great and leave the rest to be.

We live in a direct to consumer society. Amazon and Google get it. Some artists get it. What about the rest?

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Music, My Stories

The Three Amigos – Roadrunner, Dream Theater and Recouping The Advance

When Dream Theater broke through in 1992, it seemed that they just burgeoned overnight. Information and back stories of the band was scarce at that time. However Dream Theater didn’t just come out of nowhere. Dream Theater had been at it for nearly a decade prior to that. First as kids learning their instruments and from 1985 as a three piece outfit. In the end, the band has built a career of 20 plus years.

Breaking through for Dream Theater still meant “obscurity from the mainstream” however with a “cult audience” that appreciated them. Remember in 1992, the Seattle scene became the Mainstream darlings. So when the band broke through again on the back of the “Metropolis II” album in 1999 and again on the “Train of Thought” album in 2004, the hard core audience who’d been there from the beginning was now pissed that everybody else is now attached to the band. In the end no one could deny the greatness?

In this day and age, when the relevance of the record labels is being questioned, Dream Theater had a pile of money thrown at them by Roadrunner and they went and resigned a new deal. Each new deal means a larger advance paid up front by Roadrunner that needs to be recouped in some way.

That is why Dream Theater has partnered up with the US Today website and the Grammy Awards websites as the first point of call to stream the two new songs. It is actually the record label that is partnering up with these organisations. In the end, Dream Theater can veto any such partnering’s however no one has the balls to do so anymore because of this “money” problem.

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