It’s been almost three weeks since Spotify pulled Victory Records catalogue of songs in a dispute over $23,000 in royalty payments to Another Victory, the Publishing Arm of Victory Records.
The Victory Records founder has stated in an email that somehow “found its way to the press” that if Victory’s catalogue of songs is not placed back on Spotify soon, with their histories and stream counts as they were, he would be forced to lay off staff and drop artists.
You see, it’s no longer about sales, but streams.
Did you see how Metallica, once anti-digital are on iTunes and Spotify? Did you see how Pink Floyd and Led Zeppelin also caved? It’s just a matter of time before the Beatles are there as well as the imitators of Beatles music are raking in due to holdout.
All the action is in streaming and that is where the artists need to be. The music business has undergone a revolution where a “hit song” is something people listen to forever and ever, not something which they buy once.
Forget about how the media trumpets Adele’s “25” as a music industry (it should be recording industry instead of music industry) saviour.
Adele’s figures of 1.1 million first week sales for her new single are impressive and news worthy. There is a limited supply of Adele music and she has a universal “mainstream” appeal (by the way all of the Eighties Hard Rock bands had this mainstream appeal with the backing of a cultural juggernaut in MTV). This in turn makes demand for her music very high.
As appealing as the first week numbers are, they are just numbers. A lot of the times the real hits are “slow burners”.
To use books as an example, Dan Brown’s “Angels and Demons” his second book, sold only 98 copies in its first week. It wasn’t until his fourth book “The DaVinci Code” which sold hundreds of millions that “Angels and Demons” got a second wind to the tune of about 40 million copies.
Five Finger Death Punch’s debut album only moved a couple of hundred copies when it came out. Within a few years it was certified “Gold” and it is still selling, almost 8 years later.
Def Leppard’s “Hysteria” was out for 12 months before it got a second wind on the backs of “Love Bites” and “Pour Some Sugar On Me”.
However, the tides of change set forth by the customer show that streaming is the way forward. Labels like Victory Records collect between 25 and 50 percent of their digital income from streaming services.
This whole saga highlights so many wrongs with the music business;
- Lack of transparency
- Bad data collection
- The length of copyright terms means that heirs of the artists (kids, grandkids, step kids, business partners, lawyers, accountants, etc.) are “songwriters” of the song and they should be paid.
- Who actually should be paid?
- Missing money (about 25%) to songwriters due to all of the above not being met.
- Artists selling away their copyrights to the labels for an instant pay-day (advance) and then the record label keeps all monies earned as “recoup costs” (charged expenses like recording costs, marketing budgets, advances) that the artist needs to pay back.
- Who is the rights holder? The artist or the record label and/or publisher? Because it is the rights holder who is receiving the 70%. If a writer or artist isn’t seeing the money, the answer to their question can probably be found within their label or publisher contract.
But when artists are in control of their own copyrights with a lot fewer people in between, guess what happens. They actually make money if their music is listened too.
One song can earn a decent amount to the songwriter if there are fewer hands in the cookie jar. In the link, the take away line is that 10,929,203 streams on Spotify has resulted in royalty payments of $56,329.35 to the rights holder, which in this case is the artist and songwriter. If one song has been streamed that many times, by default, other songs from the artist will be streamed and the article talks about another song earning $37,000 from 11 million streams.
The consumers have made their choice that streaming has a future.
It’s time for artists to wake up and be smart about their choices when it comes to signing away their most valuable asset, their “COPYRIGHT”.