More Musicians Pissed Off Over Their Own Music Videos Being Taken Off YouTube

from the nice-job,-labels... dept

Eric points us to yet another story of yet another artist getting pissed off that his own videos have been pulled from YouTube. The writeup suggests that this is about competing record labels issuing bogus DMCA-style takedowns on artists as a part of their competitive fervor, but I'm not sure that's true in this case. The artist, Calvin Harris, is based in the UK, who is signed to Sony Music. In the UK, due to a royalty dispute, Google has removed all official major label music from the site. So contrary to TechCrunch's reporting, it seems that this may just be collateral damage of the silly royalty dispute, rather than nefarious competitors issuing bogus takedowns. Still, the point remains: this dispute, which the music industry claims is to "help" artists, is actually doing exactly the opposite.

Filed Under: calvin harris, copyright, musicians, piracy, royalties, uk, videos, youtube
Companies: bpi, google

Why The New Webcasting Rates Are A Death Sentence For Webcasters

from the plainly-ridiculous dept

When the announcement came out this week that webcasters had somehow "come to an agreement" with SoundExchange over webcasts, what was unbelievable was that many presented this as a "victory" for webcasters. Hell, even SoundExchange made public statements about how it was disappointed by the rates, but it was an "experiment." But when you looked at the actual numbers, this made no sense. The rates are ridiculously high when compared to royalty rates for traditional radio or satellite radio. Michael Robertson breaks down the numbers and explains away the myths of this deal. It will almost certainly bankrupt nearly every webcaster out there. Robertson focuses on the big webcasters, and points out that the 25% royalty rate promoted by the press isn't accurate at all, and for a company like Pandora the real rate will be north of 40% of revenue -- which is not even close to sustainable.

Meanwhile, small webcasters don't get much of a break either. Live365 is pointing out that these rates will basically kill off every webcaster it hosts by requiring a $25,000 fee. As the company notes, the guy running the Armenian folk music station for $10/month isn't going to pay $25,000 and certainly isn't going to make enough revenue to pay up.

Make no mistake: these new rates are effectively going to kill off a significant portion of online webcasters. The recording industry, of course, doesn't find this problematic, because they don't like the fact that they can't control webcasters the way they can radio, so they are fine with taxing them out of business. But what a waste of what technology allows. These days, anyone can and should be able to effectively express their own musical views by webcasting what they like. And that's about to become prohibitively expensive for no reason other than that SoundExchange/RIAA have a gov't granted monopoly over any kind of broadcasting.

Filed Under: copyright, royalties, webcasting
Companies: live365, pandora, soundexchange

Beck Re-Recording Other Classic Albums And Giving Them Away For Free

from the licensing? dept

Hypebot points out another fun experiment by a popular musician. Beck is apparently gathering random friends, and each week (with little or no rehearsal) they're picking someone else's classic album and re-recording it in its entirety and then giving away a free song from the session. This is the sorta thing that makes tons of sense (Hypebot calls it "a GOOD IDEA") and is something that's fun to do, and can help energize Beck's fans, the fans of the other artists playing along and the fans of the original performers/songwriters, as well. But, of course, there's always a cloud that hangs over any fun music project. Already in the discussion on Hypebot there are questions about royalties and who has to pay whom for what rights. When recording cover songs there are compulsory rates, but even then the matter isn't entirely clear, apparently. And, of course, some people are complaining that this just shows that he's "unoriginal." Of course, that simply shows a near total misunderstanding of the history of music -- which has always been about sharing and recreating the works of others.

Filed Under: beck, free, licensing, music, recording, royalties

Yahoo Drops Fantasy Sports Lawsuit Against NFL Players Association; Reasoning Not Clear

from the what-happened-here? dept

Last month, we wrote about Yahoo going to court to make sure it didn't need to pay any royalties to the NFL's Player Association in order to offer up fantasy football data. This would be consistent with recent rulings that have noted that services offering fantasy sports offerings don't need to pay up for the use of data (factual information) such as player names and stats. Oddly, however, Yahoo has now dropped the case, though no one seems quite sure why. It's possible that the NFLPA has said that it won't seek money, but if that's the case, why was the lawsuit filed in the first place?

Filed Under: copyright, facts, fantasy sports, nfl, royalties
Companies: nfl, nfl players association, yahoo

DJs Buy Their Own Music Online With Stolen Credit Cards To Grab Royalties

from the scheming dept

A group of people in the UK have been arrested after they allegedly put their own music on the iTunes Music Store and Amazon, then purchased it with stolen credit-card numbers. Police say they made 19 tracks and put them up in the shops, then spent about $750,000 on the music, grabbing about $330,000 in royalties from the purchases. It's quite the scam, since one difficulty in stealing credit-card numbers is converting them into cash. One way to do this is to sell the numbers themselves; another common way for people to do this is to take a stolen card, then go buy gift cards from a store with it, then sell the cards on the street at a discount. But selling Wal-Mart gift cards and hawking them on the street seems like an awful lot of work, compared to what a criminal with a computer and some music software can do. Of course, it's not too smart to continually buy the same tracks over and over with 1,500 stolen cards...

Filed Under: music, royalties, scams, stolen credit cards

Dutch Music Collection Society Loses Artist Royalties In The Stock Market

from the good-job,-guys dept

The various music collection societies keep insisting that they're just the important middlemen helping make sure artists get the royalties they're due. Except, for some reason, they keep getting caught not actually giving that money to artists, but hanging on to it themselves. Billboard reports that the Dutch collection society, Buma/Stemra, is happily telling people that revenue rose by 2% last year -- though, oddly, the Billboard report leaves out one rather interesting detail. Reader Marcel de Jong notes that Buma/Stemra invested a bunch of the money it collected for artists into the stock market and then lost a chunk of it, so it's paying artists less money than it collected for them. What's unclear is if Buma/Stemra would have paid out more if it had made money... and also why it's gambling on the stock market with money it supposedly collected for artists.

Filed Under: collections societies, losses, money, royalties
Companies: buma/stemra

Aretha Franklin Wants Royalties For That Hat She Wore...

from the oh-really? dept

It's always amusing to see what people feel they "deserve." Reader Brad writes in to point out that Aretha Franklin apparently told a radio reporter recently that she deserves royalties for any sales of the famous hat she wore to the inauguration. It's unclear if she was joking (one hopes she was)... But it does seem to be a common theme, where people suddenly think they automatically deserve a cut of something, despite not having set up an agreement for that beforehand. Newspapers want a cut of Google's revenues. Record labels want a cut of ISP revenue (and Apple's revenue). It just happens so often that it's worth calling out -- even in a totally ridiculous discussion about a hat. No one deserves a cut of anything if they didn't actually negotiate it beforehand.

Filed Under: demands, fairness, royalties

PRS Threatens Woman For Playing Radio To Her Horses Without Paying A Licensing Fee

from the this-is-called-extortion dept

When I was in the UK recently, I was surprised to hear just how much most folks hate PRS -- the collections society in charge of getting various businesses to pay for playing music. PRS is also the group that has caused music videos to be pulled from YouTube after demanding much more money than was economically feasible. But, where PRS really shines is in threatening tons of small businesses. Over the years, we've had stories on PRS threatening car repair shops, because mechanics in the garage were playing their radios loud enough that customers in the waiting room could hear them. That's a public performance, according to PRS. Then they went after a police station because some cops were listening to radios. Then they went after a children's charity for singing Christmas carols without paying up. The group has even been known to call up small businesses and if they hear music in the background, demand payment, including one case involving a guy working at home with his dog. Apparently, that constitutes a "public performance."

The latest (sent in by a few folks) is that PRS has now threatened a woman who plays classical music to her horses in her stable to keep them calm. She had been turning on the local classical music station, saying that it helped keep the horse calm -- but PRS is demanding £99 if she wants to keep providing such a "public performance." And it's not just a one-off. Apparently a bunch of stables have been receiving such calls.

Obviously, this is not a case of random excessive attempts by PRS to squeeze more money out of people. It's become systematic. The group seems to believe that playing music in almost any situation now constitutes a public performance and requires a licensing fee. You just know they're salivating over the opportunity to go after people playing music in their cars with the windows down.

Filed Under: fees, publicity, radio, recording industry, royalties, taxes, uk
Companies: prs

How Not To 'Save' The Music Industry: Ask The Folks Who Benefited From Old Inefficiencies

from the oh-come-on dept

There's a group in the UK called "MusicTank," which is supposed to represent something of a "think tank" around the music industry. It was the head of MusicTank, back at Midem, who "joked" about how everyone there could solve the industry's problems, because all the stakeholders were present, "except the consumers, since they can't afford to be here." That should give you an idea of one of the main reasons why the industry is in so much trouble. It never really considers the folks who actually listen to the music to be a serious constituent.

That's become obvious again, as MusicTank is out pushing its new whitepaper, called "Let's Sell Recorded Music!", which is based on a series of talks that the group held. But reading through the actual paper, three things quickly become clear:

1. The group started with the wrong premise: how to sell recorded music. What they should have been looking at was how to make money from recorded music. The two things are quite different, and starting with the wrong premise entirely will lead you down the wrong road.
2. While this paper does consider the "consumer viewpoint" and does make some decent points about consumers and music, it never looks at how consumers interact with music beyond buying or downloading. It doesn't look at the many ways that a fan might support a band.
3. Most importantly, the paper spends a lot of time getting the perspective of the various collections societies. This gets to the root of the problem. These collections societies are middlemen who profit off of the inefficiencies of the old system. Asking them how to fix the system is always going to get the same answer: just create yet another licensing right and let us handle the collecting of it.

It's that last issue that is clearly the big problem with the music industry moving forward. You're never going to get an industry to move forward when you think that (a) the consumer (i.e., the demand side) isn't a major constituent and (b) you're asking those who profit from the inefficient system to define how the new more efficient system will work. The whole process of collective licensing is a joke that needs to be done away with. The collections societies not constituents -- they're the parasites feeding off an old system that doesn't need them anymore.

Filed Under: business models, music, rights groups, royalties, selling music
Companies: music tank

Eminem Loses Lawsuit Against Universal Music: Jury Says Digital Music Sales Are Like CD Sales

from the so-much-for-that-plan dept

A few years back, a few bands, including Cheap Trick and the Allman Brothers sued their record labels claiming their cut of iTunes sales wasn't right. It was basically a contractual suit. Since there are a million and one different licenses to deal with, the record labels were treating digital sales the same way they treated CD sales -- of which the artists get a tiny tiny percentage. However, these bands noted that it seemed like digital sales was much more similar to a deal where they were licensing their music for use in another product -- such as a commercial or a movie. In those deals, the bands get a much bigger cut. A little while later, Eminem filed a similar lawsuit -- though somehow (great lawyers there...) thought that it was all Apple's fault and sued Apple. It looks like that got sorted out eventually, and Eminem refocused the lawsuit on Universal Music. And... didn't get very far. Last week a jury found that Universal Music was right: a digital sale is just like a physical sale, and thus the significantly lower royalty rate applies. You can bet pretty much every major record label just breathed a huge sigh of relief (even though an appeal is likely), because a ruling in the other direction would take away a hefty chunk of margin from their digital sales.

Filed Under: digital sales, eminem, royalties
Companies: universal music