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

How the Labels and the RIAA Rob Creators?

YouTube tells the world that the service pays more in the U.S for Ad-Supported Streaming than other services like Spotify and Pandora. YouTube points out that they pay about $3 per 1000 ad-supported streams in the U.S.

The record labels via their lobby group RIAA disagree with YouTube’s math

Cary Sherman, the RIAA head honcho had this to say on the matter;

“About 400 digital services have been licensed around the world, many with ad-supported features. Comparatively, YouTube pays music creators far less than those services on both a per-stream and per-user basis, and nowhere near the $3 per thousand streams in the U.S. that Lyor (YouTube) claims.”

Okay so if the RIAA is going to dispute the math put out by YouTube, then what is their math.

How much do they get from YouTube per 1000 streams?

The record labels and the publishing/licensing companies are the first to get paid. And nowhere in this debate have these organisations mentioned what they get. I know I have seen thousands of news articles showing what the artists or the song writers get from YouTube streams in their bank account, but the artists are the last to be paid, once the labels and publishing companies take their cuts.

If the record labels via the RIAA want to be taken serious they need to be transparent.

Instead they counter the math from streaming services with fluff. Yes, that same thing found in people’s belly buttons.

They fluff the conversation about a value gap, talking on and on about how YouTube has billions of users and the amount of traffic they generate should equate to higher payments and because it doesn’t, there is a value gap.

They fluff the conversation about DMCA Safe Harbor provisions being a rigged system and how politicians need to create laws to protect the business model of the record labels and in the process destroy innovation on the internet.

Basically, these organisations are doing the same thing they have always done. Lying and scheming to keep their creative accounting in-house and away from the actual people that made these organisations rich. The creators.

Think about it for a second. The streaming services via their own blog mention how much they pay the copyright holder. The very next day, the RIAA or the Record Labels quickly counter it, but they never mention how much they do get?

So the headline of the next article should be “How the labels and the RIAA rob creators?”

 

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

Outside The Conversation

Are the organisations like the record labels and the publishers doing their best for artists in the long term or are they just focused on the short term profits?

Customers of music showed the recording industry what choice brings to the conversation and the record labels ignored it. It wasn’t until a hardware company created iTunes and then a techie created a streaming service that customers started to get what they want.

Are the record labels and their lobby groups seeking useful outcomes in their fight against piracy or just short term wins?

Seriously, legislation to protect copyright and make the terms longer does not foster creativity. It only gives the current players a longer government granted monopoly.

What about how the record labels keep all the streaming licensing monies and give nothing back to the artists?

Some of the bigger artists might get a fee however the record labels are in this powerful bargaining position because of all the artists, not just the few. Then again, most people want the music of the few.

Is the record label policy of other people losing and them winning a good policy for artists and music in general?

It seems the record labels like to win. To them it’s a battle to get control back of things they lost. And they will do it through the courts and with legislation designed to protect their business model.

And if the record labels get control over the distribution chain and the recording industry goes back to the gatekeeper model of the past, do artists believe they will better off?

It’s easy to fall in love with the ideal of record labels getting artists to sign fair and equitable deals. Of course, that’s not how it works. And if there’s one organisation that hasn’t learned from past mistakes it’s the record labels and their lobby groups.

Instead of following a path that leads to better standards/outcomes for artists in the long term they seek a litigious path that only benefits them in the short term.

And what we have here is tribal identity at full force. Artists are emotional and they react to what is going on in a complicated world. In this case, the tribal identity set up by the record labels aligns itself with a downward spiral of selfish, short term actions. Fans are also emotional. Some attach themselves to the artist/creator point of view while others read wide and make their own choices.

And that’s the disconnect the industry is facing. Choice for fans to decide and make their own decisions and the power to demonstrate what they believe something should be worth.

No one wants to go deep anymore and unpack the facts. They’re too busy building out their identity online.

Trust me when I say this, there are fans who don’t pay for recorded music because they don’t believe they should, however these same fans have no problem coughing up $200 plus dollars for a concert ticket for a larger act and these same fans have no problems coughing up $20 to $70 for independent acts. It’s their choice how they choose to interact with music.

And then there are the fans who have large LP and CD collections, who don’t pay for music anymore, but still pay for concert tickets and what not.

And then there are fans like me who have large LP and CD collections and decided that streaming is the way forward. So I pay for a family account and I have no problems forking out cash for a concert ticket.

And then there are fans who have large LP and CD collections and have decided that purchasing physical is what they want to do. And these fans also have no problem paying for a concert ticket.

Life is fluid and we need to make choices every day.

This is the world we’ve arrived in. We’re dying for entertainment. The recording industry has never been more powerful. There’s all this crap about piracy, streaming rates and the techies taking over. But the techies make tools, not stories or music.

Life is a struggle for everyone, not just creators.

And our leaders have their own agenda while corporations pollute the conversation with their lobby dollars.

Why do you think they pay no tax and white collar crime corrupt bankers avoid jail?

Someone always thinks the rules don’t apply to them. If you listen to the recording industry, they would tell you that the techies believe that rules don’t apply to them. But hang on a second, if the techies are doing it their way, didn’t that used to be the ethos of the musician. To do it their way. So what went wrong? The techies have become the new rock stars. And they built it all themselves.

These days the pop stars become brands and puppets to the corporations. Otherwise there is a high chance they are left off the playlist. At least there are metal and rock creators doing it their way. Outside of the conversation they are building something, going against the grain.

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

Short Term

Thinking short term is hurting us. Every leader in charge thinks about the now and never about what’s around the bend. The majority of people in charge of corporations only care about the now. What is our bottom line looking like? There is no care about their environmental footprint or employee well-being.

Record labels are the same. They focus so much on first week sales and charts as they believe it brings in an instant payday, without understanding that the payday they are really earning is from music created 30 plus years ago and it just percolated, slowly rising to the top.

Have you heard of the record labels starting to employ artists as employees and offer them retirement plans? 

Of course not. That’s long term thinking. 

So Disney is pulling its catalogue of movies from Netflix in 2019. As a Netflix user, I say who cares. I never started subscribing to Netflix because they had Disney movies. I started subscribing because I wanted Netflix Originals. And with the addition of a comic book company with a cult like following, Netflix is looking at creating its own shared universe. It’s positive and long term thinking.

How often do we hear that people have no reason to pirate from the movie studios and record labels, as their catalogues are available online legally?

Amnesia seems to be the order of the day for the labels and studios because the online legal alternatives are fragmented. And as long as fragmentation exists, the pirate sites will be numero uno for content consumption. Same deal for music that’s available on Tidal or Apple and not on Spotify and vice versa. It’s ridiculous. So are consumers meant to have three streaming subscriptions for music and another ten streaming subscriptions for movies/TV. I don’t think so.

Consumers don’t want to have a dozen or so subscriptions. Just look at the cable TV industry. Too many subscriptions are expensive and not manageable, especially when these streaming sites are competing with illegal streaming sites who offer everything on the same site. Illegal streaming sites also show the content industries what kind of supply consumers want. At the moment, the content industries are focusing on the payday right now which means limiting the supply instead of the payday in the long term which means to open the supply and get more people to subscribe.

So what would Spotify do if Universal, Sony and Warner pulled their music from the service and started up their own service like Disney?

I don’t think it will happen. The revenues the three majors are getting from streaming licensing deals and royalty payments is insane. They would be crazy to leave Spotify. But if they do, Spotify is in trouble as it has no original content.

Have you seen the revenue numbers from Warner Bros lately?

Streaming grew by almost 60% from $227 million to $360 million. Downloads bring in $88 million, down from $121 million. Forget about vinyl, CD’s and cassettes. They are niche items that collectors would buy, however they will not sustain the business.

Overall income from recorded music grew by 13% to $770 million and it happened on the backs of listening instead of selling. Consumption in the 2000’s is all about access.

So if Spotify doesn’t pay, how did Warner accumulate $360 million dollars in streaming fees? All of those artists who sold their rights to corporations are losing out big time. The corporations who hold the rights are making a lot on streaming. 

The rich are getting richer. Meanwhile, we have clueless sites reporting how legacy artists need to hit the road to keep an income as they have no monies coming in from streaming. Well, these legacy artists need to get with the times. Get their fans to stream instead of buy and the corporation that has your rights will get paid royalties. And if you have a good deal with the corporation that holds your rights, you will get paid as well. If you don’t have a good deal, you will get squat. The game is rigged in the record labels and publishers favour. They are making a tonne.

It wasn’t supposed to be this way. The internet was supposed to level the playing field, give us all a chance. Instead we have monoliths who control 70% of the marketplace. And the powerful always abuse their position. Look no further than the scandals.

In Australia, we have our largest bank, Commonwealth Bank of Australia, involved in money-laundering. The deputy commissioner of the Australian Tax Office was covering up the multi-million tax fraud of his children. Politicians are resigning because they developed amnesia and forgot they are dual nationals, which is a breach of the Constitution. And still no word if they get to keep the money they fraudulently earned or they need to pay it back. All short term thinking.

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

Frequency

Frequency. It’s a bad word for rock and metal artists. Release music frequently. 

It’s still a concept artists are struggling with. It’s even more troublesome for bands. The singer/songwriter can make it happen, but for bands it’s a different story.

Do you think Netflix would get 5.2 million new subscribers in the last quarter, if they released one tv show every two years?

Of course not. 

And their programming rocks. Don’t like this show, don’t worry we have another new show coming in two weeks.

While HBO might have “Game of Thrones”, its old school business model of releasing an episode each week will prove its downfall. 

While content is what brings people in, distribution is king! 

The oldsters did a great job selling the story of platinum records and chart placement = success. While rock gods lapped it up, hip-hop and grunge came to to fill the void and the danger that rock occupied. 

The new world demands more, while the rock and metal heads are still worrying about the chart placements and that build up to the one time release date, where money is supposed to rain down. 

The day of release is when the hard work really starts. You want a story that lasts and if you release a new song, wait for the reaction. 

If you get none, be smart and create more music. Forget the album, you’re looking for a reaction, and if you get none, it’s back to the drawing board. 

It’s an online streaming world. 

And to be in a band, it’s not about the payday so much as access and attention. Metal and rock needs to realize it’s best to have a continuous stream of new tunes being released and making news.

The money will come. But you need to control your copyrights so you get maximum royalties. 

It’s a new world and if you play metal/rock you’ve got to be in the streaming game and releasing frequently. 

The youngsters, the ones who replenish the music base are signed up to streaming. And artists who don’t want to be part of the streaming group are still debating the payouts.

Publishers and labels bitch about YouTube payments however those organizations are purely responsible for YouTube’s growth.

Because of greed, the labels and publishers negotiated with Spotify for over 3 years before it entered the US market. During this time, people turned to YouTube for their music fix. And it’s still number one when it comes to streaming.

The paradigm is different. Your musical output lives online and the money is in what lasts. Success is based upon cumulative streams, not sales of albums, and the streams go on forever.

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

Little Streams Of Heaven

Streaming is good for labels and artists. Indie labels are on the rise and artists have options everywhere on which digital aggregator to use when releasing music.

Taylor Swift and Neil Young’s music is back on Spotify and the normal PR outlets are silent but when they took their music off, well the narrative was very strong about poor artists vs big bad faceless tech giving the masses inferior sound quality and not paying enough.

But Pandora is declining in users, looking for a new owner and Spotify is not making money yet because its business model of a streaming service only does not allow it.

Spotify needs to diversify into a record label (like how Netflix diversified into its own content) because it can’t survive as it currently operates.

Apple has its own ecosystem and it bundles music with Apps and hardware sales.

YouTube is still there but viewership of music videos pales compared to streaming listens. Plus Google (apart from search) does everything half-hearted.

In the end streaming is king. The irrelevant sales charts had to amend their formula to include streaming and suddenly an artist is controlling all positions.

The old certification awards now include streaming in their formula and guess what, artists are getting platinum awards on streams alone. That’s right, no sales. Just listens. What a brilliant concept.

But those record label execs and publishing rights organisations want to strangle the streaming golden goose. They have a percentage stake in it, they get upfront license fees and they get royalty payments. Their profits are boosted by streaming and they still want more.

Meanwhile artists and songwriters keep on blaming the tech for the payments made instead of blaming the corporation who controls their copyrights.

Forgetting that Spotify is the new MTV. It’s influential. Think about it. Get onto a Spotify created playlist and watch your streams go into the million to 100 million territory.

Spotify controls data. It knows instantly when songs are skipped and when songs are listened to. The songs that people listen too are added to various playlists it controls. Suddenly those songs become hits.

Jasta’s “Chasing Demons” is the first track on Spotify’s “New Metal Tracks” playlist. It has 227,182 streams. The closest track from the same artist “This Is Your Life” has 22,433 streams.

“Lights Out” from Royal Blood is on 5 plus Spotify playlists and it has 6,435,533 streams whereas “Hook, Line & Sinker” has close to 2 million streams and it’s on 2 Spotify playlists.

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

STREAMLINE

Where do you want your fans to go?

Give people too much choice and they don’t buy at all. It’s one of the reason’s why a lot of people are still sitting on the fence when it comes to streaming. They’re not sure if it’s going to stick. My musical journey started with vinyl and cassettes, then I had to upgrade my vinyl/cassette collection to CD’s, then I ripped all of my CD’s into MP3’s and now I’m doing streaming. As just one music consumer from the millions in the world, I have Megadeth’s “Rust In Peace” on vinyl, on CD and on CD again as a remastered release. Actually, this is the same deal for all of Megadeth’s output up to “Rust In Peace”.

For Motley Crue, (it’s the same deal for all of their albums up to 1989) I have “Dr Feelgood” on cassette, vinyl, CD, CD remastered, in the box set “Music To Crash Your Car Too” and on CD again remastered with bonus tracks.

For the 1994 Motley Crue CD, I have it on cassette, the CD with the red writing and the CD with the yellow writing. Plus I have the super expensive Japanese EP, “Quaternary”.

So you can see how band sales are really inflated when you have other people in the world doing the same thing I am doing, which is re-purchasing the music in different formats and in some cases with bonus tracks upgrades.

I will used “Shout At The Devil” and “Dr Feelgood” from Motley Crue as a case study.

“Shout At The Devil” came out in January 1984. By November 1989, it was certified triple platinum for 3 million in sales in the U.S. You could safely say that Motley Crue had 3 million fans. However in May, 1997, it received its 4x Platinum award for 4 million U.S. sales. While the label and the band would believe they had picked up an extra million fans, the truth is, those million sales over 8 years came from their original 3 million fans, re-buying the same album in a different format or packaging maybe once or twice.

“Dr Feelgood” came out in November 1989. By January 1991, it was certified 4x Platinum for 4 million U.S. sales. Its next certification came in May, 1997, for six million U.S sales. Again, the band didn’t just pick up 2 million new fans. Instead it was the hard-core fans re-purchasing an album they already owned on normal CD and then with the remastered bonus tracks.

When Steve Jobs returned to Apple in the late 90’s they had too many models, all with design and functionality issues, that even Apple couldn’t keep up servicing them. So, it’s no wonder that Jobs streamlined the product range. And then Apple started to make money again. Now that Jobs is gone, Tim Cook is following the same mistakes of the other clueless leaders Apple had when Job’s wasn’t in charge. Too many products with too many bugs.

Look at the band releases these days and how many different offerings they have. The recent Metallica release has the following packages;

  • CD – normal album
  • Vinyl – normal album
  • CD – Deluxe album
  • Vinyl – Deluxe album
  • iTunes – normal album
  • iTunes – Deluxe album
  • Streaming – normal album
  • Streaming – Deluxe album

Why is there a need to have a normal album release and a deluxe album release these days?

Why can’t the album just be the album? If the band wants to put out three discs, let them and call it THE ALBUM…

Price and the how people will pay high prices for what they deem superior or rare is one of the reasons mentioned for the deluxe edition still existing but these days the deluxe edition is not in limited supply anymore. Millions are in circulation. The real main reason is due to artists and labels refusing to abandon the past.

Jobs refused to be chained to the past. Legacy ports were axed on the iMac. CD Rom drives got axed on later versions. The iPod was murdered by the iPhone. If Jobs let the past dictate the future, Apple would have been left dead and buried. But the past is the Achilles heel for the music business. The public is moving on. It doesn’t care if HMV goes under. It doesn’t care if mp3’s are declining. Hell, mp3’s via Napster is nearly 20 years old. The public at large doesn’t care about deluxe editions. Super fans and fans of bonus tracks do care but the music business cannot roll on these fans alone. It needs the majority, hence the reason why streaming has become a big player, because it offers access.

Trust me the labels would prefer to not have streaming, because the listens are anaemic on signed acts. Hell, there are DIY bands who have more listens on their account than label backed bands. But streaming exists, because the majority wanted it.

Don’t let the past dictate the future.

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

Playlists And Streaming

Spotify is growing. The pop artists or the cross-over artists from other genres into the pop world are getting into the 100 plus millions/billions listens. And the high counts are due to two things;

  • Spotify Playlists.
  • Listeners Playlists

If a song is added to the most followed playlists, then the listens go up.

There is a “Rock In The 2000’s” playlist created by Spotify and if you check the songs on it and then check the streams the songs have on the artist account, you will see those songs on the playlist dwarf the rest of the catalogue. For example, “Chop Suey” from System Of A Down is on the Spotify playlist and the listens of Chop Suey is exponentially higher than the remainder of SOAD’s catalogue.

“Drake doesn’t lock himself into an album cycle. When Drake wants to put out music and he feels like it’s ready, Drake puts out music. So it’s not the typical, “I’m gonna put out two singles, then launch my album, then go on tour, then wait two years and go back in the studio and release this music.” I think he really has captured that rhythm of how fans want to consume music.”
Spotify’s Troy Carter on Drake’s Streaming Success

Drake is as metal and rock as the soap in the bathroom is metal, however the lesson should be applied to all. New music is an invitation into the world of the artist. It’s not the only thing. Capture the moment and release when the song is ready, not many months later when the album is ready.

Platinum selling artist Mark Tremonti has released three albums in 2 years, and while Tremonti and Alter Bridge are on tour, he is spending his free time giving guitar lessons/doing guitar clinics as an additional income stream.

It is easier to find and less costly to release new music, leading to unpredictable successes from artists who might not have been discovered or produced an album in an earlier era.
Michael Luca and Craig McFadden – Harvard Business Review

And that’s the cold hard truth about music in 2016. Artists who normally wouldn’t be signed can suddenly record and release music into the world. The supply of new music over the last 10 years is way higher than the demand for new music. Hell, I listened to 950 plus unique artists on Spotify this year. I grew up in the 80’s with no more than 50 or so unique artists. Spotify has over 20 million songs that haven’t been listened to yet.

Sure, some of the Spotify playlists might be a PR exercise for the labels, in the end, it still comes down to the user, who still likes to have some a filter to push new music on them. But then the record labels would like to mislead people about how much it costs them to break an artist to the mainstream.

The truth is the labels don’t break artists. They can spend monies on the artist, the promotions and put them out into the market place, however it is the people who decide if the artist will break on through. And what we are seeing more are artists making it on the back of streaming and no radio support.

But times have changed: in a landscape dominated by services such as Spotify, Apple Music, Tidal and Amazon, it is possible to have a hit without the press and radio (or much of the public) even noticing you. Kiiara, hardly a household name, is currently enjoying a global hit with Gold, off the back of 312m streams on Spotify alone. (Other services don’t make their numbers public.) You could look at British artist James TW, whose song When You Love Someone has 35m streams. Then there’s Australian teen Joel Adams, whose one and only song Please Don’t Go has chalked up 320m streams on Spotify.
Peter Robinson – Guardian Writer

Yeah, I got no idea who the above artists are and none of them are really rock or metal, but the possibilities are there for unknown metal and rock bands to become streaming behemoths without the support of record labels and radio stations. However, having a high streaming listen count doesn’t automatically correlate to concert ticket sales or sales of recorded music, much in the same way Facebook likes/followers never equal sales. The artist will need to work even harder to convert those listeners into real fans, because a lot of streaming users are casual fans who like to check songs out.

 

In the back-end of Spotify, for instance, fans are split into three categories: streakers (who have listened to the artist every day in the last week), loyalists (who have listened to them more than to any other over the past 20 days), and regulars (who listened to the artist on the majority of the days in the month
Peter Robinson – Guardian Writer

Spotify is building the data banks instead of the labels. Apple already has the databank. The labels have done nothing in this regard. So as an artist, who do you want to partner with?

And finally, there are the playlists. The more playlists the songs are added to, the more exposure the songs will get and this is where the old gatekeeper model comes into play. How does a rock or metal band get their songs onto a Spotify created playlist that has over a million followers?

STREAMING – changing the music business again
STREAMING – artists who made it huge without radio support
STREAMING – Swedish artists benefiting from streaming 
RECORD LABELS – breaking an artist 
SONGWRITER WHO SOLD HIS SONGS FOR A FEE AND IS UNKNOWN

Standard