Tag Archives: streaming

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.

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

Music Is All About Change

The new music industry is all about change.

Do you think that if you pull your music from Spotify that it is not available on YouTube with ad support (which means income) and with no ad support (which means no income).

The new music industry is about exploring different business models and seeing which one works for you.

Black Veil Brides had a Pre-Order pledge campaign for their new album and the perks on offer just kept on getting sold out. First week U.S sales are anaemic at 29,925 however does that mean that the album is not popular or that it is not a success. Go on YouTube. The BVBArmyVEVO account shows 2,206,786 views for the “Heart Of Fire” video, 1,208,958 for the “Faithless” audio and recently a clip went up for the ballad “Goodbye Agony” and that has already accumulated 464,059 views. Compared to their big song “In The End” with 36,560,728 views, you can see that the fan base is experiencing the band in many different ways. In this case, the band and their team (record labels, managers, accountants, lawyers and publishers) are making money from the Pledge Campaign, YouTube views, streams on other services, physical sales, mp3 sales and radio plays.

Coheed and Cambria had a vinyl remastered re-issue of “In Keeping Secrets Of Silent Earth” which sold out its first pressing and then they went on a sold out commemoration tour of the album. They are remaining relevant even though their last album came out in February 2013. For them, 2014 was all about touring, vinyl sales, special edition live box sets and merchandise.

Basically new business models from bands are reshaping the way music is marketed and distributed. There are countless new artists emerging and there are countless new ways for fans to listen to those artists.

The music industry of the past consisted of great control. Distribution in those days consisted of record stores. Technology has made way for new opportunities, thus creating new models. The internet has eliminated a lot of past costs within the music industry; this goes for the way music is recorded, the format of music, the marketing, and especially the distribution outlets. New models have taken away the control aspect.

Digital Summer recently asked a Facebook question to their followers about how does everyone find new music. They wanted to know how their fans had heard of them and where they usually hear new music they like? I went through the comments and grouped them into categories.

Radio like Sirius XM Octane, local terrestrial stations, Pandora, Slacker Radio, iHeart, etc got 137 votes for 26%. At this point in time radio is still the best way to get your music out there. However it is the Live show that seals the deal for the band.

Live Shows especially comments around the opening slot that they had on the current Volbeat tour got 121 votes for 23%. It looks like the band really delivers on stage. Also the comments kept on saying that the band members took time out to meet newly converted fans and showed them where they can get free downloads of the band’s music. It’s all about connecting with fans folks.

Word of mouth from fans or band members got 63 votes for 12%. With the internet connecting everyone, I expect this to be more relevant.

YouTube via the algorithm suggestions got 57 votes for 11%. The tech industry is fragmented. When you combine the platforms like YouTube, Spotify, iTunes, Twitter, Facebook, Instagram, MySpace, Online publications, other online platforms and Amazon, you get a 37% reach from the Techies.

Spotify via the similar artists feature got 30 votes for 6%

Twitter via the band members following someone and that someone goes on to check the band out got 25 votes for 5%.

iTunes via the Genius or suggestions based on previous purchases got 25 votes for 5%.

Promotions like having cool looking merchandise, flyers, giving away free demo CD’s, having their stickers plastered all over town, endorsement companies, music stores got 16 votes for 3%.

Other Online Platforms like Reverbnation, Soundcloud, Google Play, XBOX Music, Last.fm, Gaming Music Videos got a combined 13 votes which also equates to 2%.

Instagram via the band members liking photos posted by users or following users got 10 votes for 2%. This was a surprise, however the work that the band members have done on this site is astounding. One fan commented that they are a Gemini Syndrome fan and when they posted a photo of Gemini Syndrome on Instagram, one of the Winterstein brothers liked the photo. The soon to be fan, clicked on his account, saw they had a band, checked out the band and then became a fan.

Facebook and MySpace got 10 votes each for 2%. Goes to show that while Facebook is a good tool for connecting with fans once you have them, it is not a good tool for finding new fans.

Online publications like Stereogum, Loudwire, Jango, Revolver, Ultimate-Guitar got 6 votes for 1%. This is another fragmented industry. The online publications offer no substance, no personal opinion. It’s just all thumbs up, pat my back and I will pat yours style of reporting.

The Pirate Bay/Torrents got 4 votes for 1%. Looks like copyright infringement is not such a big issue.

Amazon got 3 votes for 1%. This is how I found out about the band. Their “Counting The Hours” album came up with bands I might like based on my purchases.

So what does tell any new artist trying to build a career in music.

Be ready to change on the whim and be ready to try different ways of promoting, connecting and marketing your music.

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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.

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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?

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

Thinking Out Loud About Music

MUSIC OVER MONEY

Everybody wants to get paid. But if money is your primary desire, you’re not an artist.

First and foremost an artists want to create and have their creations experienced by as large an audience as possible. There is a local Australian artist called Ricki-Lee Coulter who is in the pop market game. She has spent the last two years making her fourth album. This process has involved her funding a three-month stint in New York to work with American songwriters and producers, paying rent there as well as back in Australia. Then there was a self-funded trip to LA to work with more American writers, aware of the need for an ‘international’ sound to compete on radio. Then she flew an LA-based writer called Brian Lee to Australia for a ten-day workshop to co-write three songs. She paid for his flights and accommodation. And this is how she sums it up;

“Over the last ten years if I added it all up I could have totally bought a really nice house with what I’ve spent on my career. But sitting in a big house with empty dreams? I’d always be wanting more. I always pay for my songwriting trips overseas. I don’t want to be reliant on anybody or answer to anyone. I want to have the freedom to do things the way I want, not the way someone else does because they’re paying for it. I don’t want to take away from the support I get from my record label, but if I want something I want it. Sometimes it’s me that has to suck it up and pay for it and that’s fine, because I don’t want to have any regrets. Record labels aren’t an endless source of money. I’m lucky with the opportunities I’ve been given and I’m not left wanting. But if I wanted to be a billionaire I wouldn’t be doing music in Australia. There’s plenty of other jobs where you can work as hard as you do in music and make a whole lot more money. But I don’t do it for dollars and cents, it’s who I am. I’d feel empty if I didn’t do it.”

If you are not investing in yourself how do you expect others to do so.

CREATE

An artist creates constantly. That’s their job. You’ve got to keep doing it because you love it. You need to be trying to create something that connects all by itself and you have the fans spreading its greatness, not some marketing campaign.

TRUTH

How many Googles are there? How many Apples are there? How many Facebooks are there or Amazons?

The answer is ONE Major player. So why do you think that musical fans have time for thousands of bands.

POINT OF VIEW

Robb Flynn puts it out there with his journals and it is a great way to keep in touch with the fan base. It is him also creating art. His recounting of the “Through The Ashes Of Empires” album making off was brilliant.

LIKES vs MUSIC

Keep the likes for social media. They have nothing to do with music. Music has an edge and as an artist if you rub off all of those rough edges that make you unique, then no one will care about you.

CHANGE

People will try to change you. There are a million ways to screw an artist financially and career wise. Don’t change.

ONE TO MANY

The tech game is all about how can I go from one to many. In other words how can I produce something so good that it sells itself.  It used to be the musical game however it hasn’t been that way in a long while. You will never make money from recordings if you don’t have hit songs. I don’t mean a Billboard Number 1 style of hit,I mean a Paranoid, Live Wire, Holy Diver, Lick It Up, Darkness Within style of hit. Apple as we know it today was built upon the iPod. That was their hit.

VINYL/CD’s

It’s a niche market selling these musical artifacts. Now, more than ever before, your success depends upon your music. The traditional recording sales revenue may have tanked, that does not mean new opportunities have not arisen.

STREAMING

Streaming is just too easy, and on streaming services everything is available. You need great music to rise above.

TOURING

Recordings keep your career alive. Spend too much time on the road or leave large gaps in your recorded output then you are moving in the direction or being irrelevant.

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

Billion Dollar Music Streaming Market

There’s billions of dollars to be made in the music streaming market. Apple, Google, and Amazon’s recent moves into digital music will provide a major “revenue boost” to major labels. And do you know what a crowded marketplace of streaming services means to the record labels?

It means competition and that competition is good for the record companies, who charge the streaming outlets substantial licensing fees to use their songs. So in other words, these tech giants are cash rich and they are willing to offer labels high royalties in exchange for exclusive content. Add to that mix the rivalry between the tech companies and what you have is billions of dollars that are paid to the content owners. Now since the record labels are the content owners of a large amount of songs, how much of those monies are filtering down to the actual artists. Because in the end for the record label to license out their catalog it does not require any additional spending. In addition, the record labels use this “content ownership” bargaining chip to also take a part stake in the ownership of the streaming service.

Why do you think that the record labels are really pushing for Spotify to go public?

Yep, it means more dollars for them as part owners. Hell, even Jared Leto, who has battled music label “greed” with Thirty Seconds to Mars, invests in Spotify. As an actor he gets paid for his work however as a musician he has seen the labels take all the money and not share it with them. Seen the film called “Artifact”. After Thirty Seconds To Mars sold millions of albums, EMI/Virgin sued the band for $30 million because according to the label the band was still millions in debt.

That is what happens when the secret deal involves the label giving some money as an advance and then claiming back 80% of the monies earned, and using the other 20% that is for the band to pay back the original advance plus other costs the band might have occurred.

Meanwhile, you have Apple who thinks that spending $10 per month on a premium music subscription is too much for the average listener. The average music consumer spends only around $60 per year on CDs, vinyl, downloads, and streaming services. That’s why Apple is talking with record labels to revamp its Beats Music service with a lower price.

Let’s look at how the recording industry handles conversations of prices.

According to the record labels, there is none — people either like a song and will pay any price for it, or they don’t and they won’t. So when Apple approached record labels at the start of the 2000’s, the labels were resistant to unbundle the album and sell individual song downloads through the iTunes Store, even though the recording industry was spiraling downward, Apple still had to work hard to convince the labels that digital downloads would be a benefit to them.

It is worth nothing that the price of streaming services is not set by the technological companies. The record labels actually set the minimum price these services are able to charge through their licensing agreements.

What about Thom Yorke?

Is he a leader in business model innovations or an out of touch rock star?

We all know back in 2007 that Radiohead shocked the recording business by releasing an album online with a pay-what-you-want pricing model. Not long after, the website Bandcamp allowed lesser-known artists to put their music into the vast expanse of the Internet, even if it didn’t make much or any money.

I think that is pretty innovative.

And a few weeks ago Yorke found a new way to push the boundaries. He put his latest solo album up on BitTorrent for $6.

Is this a new way for people to get the music they want without interacting with all the bullshit of streaming services, mp3 downloads or physical stores?

Is this another brilliant way for bands to have a direct to fan interaction?

Or is it a step backwards to limit access to an artists work because the enemy is obscurity. As we all know, everything is available, so why is Yorke putting up a pay wall, especially when the younger generation are all about racking up YouTube plays, which pay quite handsomely when they’re in the triple digit millions.

It is the consumer who controls the business models today. And the model is not about who buys it anymore. It’s about who is playing it and who is listening to it. And today there are many more avenues to getting paid than there have ever been before. Create something great and you will be paid forever, as people listen down the ages.

And this is the takeaway. People are compelled to make music and to share their music with people. No one is going to stop doing that just because there is some corruption out in the recording industry.

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

What Does Volbeat’s RIAA Certification Tell Us About The Recording Business?

Volbeat just got a Gold Certification for digital sales from the RIAA in relation to their song “A Warriors Call” from the album “Beyond Heaven, Above Hell” released in 2010. So what does this tell us about the state of the metal/rock world in 2014 when it comes to sales.

Recognition Comes Much Later

Recognition and success come much later in the current world. In Volbeat’s case their entry in the mainstream American market was about ten years after they formed. This is extraordinary when you consider that they were very popular in parts of Europe before that. Overall, Volbeat’s first gold certification in the US has been 20 years in the making. The hardest thing today is to make a new fan or to get people to check you out. So anywhere music can be played, your stuff should be there. Volbeat do just that. On Spotify “A Warriors Call” is at 9,630,292 streams. On their YouTube account, the same song has 6,506,260 views.

If you create something that is good you will not be complaining about your income. Write a hit (and when I say hit, I don’t mean number 1 on the charts. I mean, a song that connects with a lot of listeners), you’ll make money in ways you never thought of, and you can sell your rights to the corporations you complain about, license it to every company or TV show or movie. But that means you need to create constantly as you don’t know what could connect with an audience. But that’s much harder to do than complain.

“A Warriors Call” was never a chart hit, however it connected with listeners.

The Bell Curve Is Prominent

With each metal/rock band there is a hardcore fan base that will try the band out straight away. These early fans make up 13% of the total future fan base and they are the ones that believe in the band and its music. Then within time there is a large 34% group called the early majority. These are the fans that will not try something, until somebody else tries it first and recommends it. Then there is another 34% group called the late majority. These fans adopt the band only after they see a clear majority of metal heads fully assimilating the band as a part of their daily life.

Metallica is a perfect example of the Bell Curve in action. From 1981 to 1983 they had a fan base based on early adopters. From 1984 to 1988, the fan base grew to include the early adopters and the early majority. After the explosion of the self-titled Black album that fan base grew even more as the late adopters and any laggards came to the party.

Volbeat is another perfect example. From 2000 to 2006 it was the early adopters. Then between 2007 and 2010 it was the early majority. During this period they also supported Metallica on the North American leg of Metallica’s World Magnetic Tour. And then from 2010 to know, we have the late majority all jumping into bed with Volbeat.

The internet is another perfect example. In the mid-1990s it was first used only by people who had access to and were familiar with personal computers. By the 2000s, the early majority started using it and a lot more development started taking place around communications, banking and financial services, and mass media (music, movies, books, journalism, newspapers, and television). Over the last five years, the late majority, previously unfamiliar with computers and the internet, have adopted computer skills after realizing the technology’s impact on society at large.

Albums

The core audience plus the early hardcore fans want it, but the public at large want the hits. Most people are casual listeners who don’t always go deep into every act they like. However if they want to go deep into an artist’s catalogue they will go onto Spotify. You can amass an albums worth of songs on Spotify and never actually release an album. That’s the new game.

Labels want albums because that is the best way to monetise for them. It is easier to charge money when there is a bundle of songs involved. Artists want albums, because they grew up on them and they want to be like their heroes and make a statement. However the album means nothing to the listener who has a music collection all on an iPod. Fans always wanted access and the internet era has provided that. And then there is the hardcore element that wants a little bit more like the the alternate cuts, demos, unreleased tracks and so forth.

Also remember this. The multi-Platinum “Stay Hungry” was a tight, nine-song, 37-minute set. “Blizzard Of Ozz” was 39 minutes long. Slippery When Wet was 46 minutes long. “Ride The Lightning” was 47 minutes long. All of them were classic albums that broke the bands involved to a larger audience.

What are these numbers trying to say?

You don’t need 80 minutes worth of new music to be released on one slab at one time to connect with fans. People don’t have spare hours anymore. They have spare minutes.

Streaming Is Not The Enemy

Streaming revenues will go up and you will get well paid eventually. But you need to utilize your recordings and mobilise your fan base to start streaming. If you still focus on the album sales, you will be destined for the scrapheap. So don’t keep your music off streaming services. Seriously what is the point in preventing people from streaming your music so that you can sell an extra 10,000 albums.

What advantage does AC/DC have by not being on Spotify?

What did Jimmy Buffett achieve by standing up in all his glory and asking Daniel Ek for a raise?

Record Labels

Are still clueless. Volbeat finally got a major label behind them in Universal for their latest release. The majors have no idea what connects. That is why they look to the independents or their off-shoot labels. In this case, thank god that Rebel Monster Records, which is an offshoot of Mascot Records showed interest.

Artists still want the label to make them famous as the labels have the marketing power and the relationships in place. So don’t bitch that you’re not getting paid by streaming services when in fact the record label is absorbing these payments and then drip feeding you the change.

 

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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.

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Copyright, Music, My Stories, Piracy

Who Made APRA/AMCOS Gods On Piracy?

What kind of world do we live in where a royalties collection agency that has a business model based on copyright thinks that it has a right to have a say about what kind of legislation should be written. Talk about business model protectionism. Talk about a conflict of interest.

APRA/AMCOS which is a royalties collection agency in Australia is asking the government for harsher and stricter laws for people who download music. And they asked sent emails out to artists that have songs registered with them asking us to make sure our voice is heard. Basically it was a call to arms to toe the same line as them. Well, I don’t want people who download music to be litigated. I don’t want the government to write laws to protect crap business models. Because the truth of the matter is this. The APRA/AMCOS business model is based on copyright.

Now with streaming winning on all fronts and the purchases of MP3’s and CD’s drying up, APRA/AMCOS is financially challenged. And they don’t know what to do. So they hijack the Copyright debate. Copyright was always about getting works into the public domain after a reasonable period of time. And organisations like APRA/AMCOS have twisted the debate to make it all about money.

If the music world embraced what Napster offered back in 1999 well, a different conversation would be happening right now. But they didn’t and music piracy just kept on growing.

But online music piracy is declining. The war is over. Streaming has won. Each year more and more people take up legal streaming services. The money pie to split up will only get bigger as the services get bigger. It’s simple economics. But the corporations of old don’t look towards the future. They look towards RIGHT NOW. How do they get paid right now?

Spotify says music piracy in Australia is on the way down. The corporations that have business models based on copyright say the opposite. What is known is that hard-core pirates will always remain. And that is nothing new. They have always remained. Even in the pre-Napster days people pirated.

Artists say that Spotify and Pandora don’t give them a fair share of money. Spotify says they do pay the rightsholders. In 99% of cases the rightsholders are the record labels and the publishing corporations. And it those entities that are not filtering the money back to the artists.

Seen any record label scream up and down that Spotify is not paying.

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A to Z of Making It, Music, My Stories

The Death Of The Traditional Charts

The “traditional” single release used to get marketed and promoted for months. It would then get radio airplay and with all of the hype that goes with each single release, the record label and the artist would hope that the single would sell.

After the single does its run it would be removed from sale. During this period thousands or maybe millions of people would have purchased the single. They would hand over their money at the store and then take it home and play it as many times as they liked. The actual sale of the single was counted by the charts but all of those plays at home didn’t count for nothing.

Until now.

One sale is just one count towards the artist.

But now with streaming, a song/single can continue to have traction for months, years or decades. And there is the paradigm shift right there.

Albums were designed to have a longer shelf life. Singles were designed to have a short shelf life. Now with streaming, the border lines between singles and albums have dissolved. But the record labels and artists still insist on spending three to nine months recording albums. That was fine once upon a time, when albums did have a longer shelf life due to gated releases, but in 2014, albums have a shorter shelf life. Release frequently is the norm today, but nearly every established artists refuses to do it.

An artist will continue to earn a streaming income on a recording for years from their fans, whereas that fan would in the past have only paid once. Actually, if the artist gave their rights away to the record label for an advance payment, then it would be the record label that will continue to earn a streaming income on behalf of the artist.

Artists need to negotiate better. Sell your rights away for an advance payment, however have a clause in there that stipulates that if a song reaches a certain target, then a different rate of payment kicks in or the advance needs to be topped up. Because at the beginning no one knows how big or how low the actual song could go.

Going back to the new charts.

I am expecting the best to rise up again, the classic songs that we have known. Don’t be surprised if AC/DC and Metallica make a comeback to the charts. Journey will be there with “Don’t Stop Believin’ and Bon Jovi will be there as well. Old recordings will reappear. I have no doubt about that.

But with any technological product, it is open for misuse and I am sure that streaming services could skew the results based on their corporate deals with TV Shows and Record Labels.

But in the end it is a change and a big one.

Are the Heavy Metal artists and their fans ready?

This is their chance to bring Metal and Rock music back to the masses because the power of the radio and the labels is diminishing in this area for now.

The power is in the hands and ears of the individual streamer. The fans of the artist have the potential to control the musical career of their favourite artists. As an artist this is a good thing.

And business models around streaming and ownership of music will continue to grow.

“We can say with a high level of confidence that it no longer matters how many albums an artist has sold. All that matters now is how many listeners that artist can convert into owners.”

The words above are from the Arena CEO.

Who is Arena you ask?

Arena is another player on the scene and their business model is very different. Once a listener streams a participating single song 5 times, Arena then gives the listener the MP3 file to download and own. Arena then will pay the artist $0.85, in addition to the $0.21 for the 5 streams, as if the listener had purchased the song to own directly. This is a combination of streaming and ownership, because if peer-to-peer downloading has taught us one thing, it is that fans of music still want to own and they want to own music for free.

What Arena is paying is well above the industry standard rates from Pandora, Spotify, Beats Music, and YouTube. To top it all off there is no monthly subscription. If Arena will take off, or if it will get swallowed by Spotify is a different matter. What is clear is that it is addressing a gap in the record label business model that is still unaddressed.

And that is peer-to-peer downloads of mp3’s. And how these five streams = 1 download will count on a chart is another matter in its entirety and it further highlights how out of date the current charts are.

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