Busta Rhymes Backs Megaupload, Says Record Labels Are The Real Criminals

from the who's-hurting-who dept

Well, well. As we pointed out when the Megaupload shutdown happened yesterday, the company had recently named top producer (and husband to Alicia Keys) Swizz Beatz as CEO. Swizz knows tons of artists who respect him, and it seems that some of the biggest names in the business are pretty pissed off that the US government shut down Megaupload. First there's Diddy, who put out a couple tweets pledging support and telling him to never stop.

But what's a lot more interesting are the very direct statements from Busta Rhymes, who is clearly pissed off at the US government claiming that Megaupload is a criminal operation. Putting his tweets together, he states:

1st of all I am soooo proud of my brother @THEREALSWIZZZ 4 being apart of creating something (MEGAUPLOAD) that could create the most powerful way 4 artist 2 get 90% off of every dollar despite the music being downloaded 4 free...

With labels and companies doin' deals with Spotify and many other companies like it who doesn't give us shit continue 2 do what they do and blatantly show us how much they value the artist with doing deals of such disrespect and lack of value 4 our content...

I am proud 2 stand next 2 my brother @THEREALSWIZZZ and fight the good fight...Our freedom is truly being fucked with in a very significant way and I strongly suggest 2 all artist especially the 1's Swizz repped 4 comes out & reps 4 him!!!

Fuck that I say it again...I'M PROUD OF MY BROTHER @THEREALSWIZZZ #GREATMIND!!

You can see the tweets here (full version), here (full version), here (full version) and here.

There's a key point in all of this that we missed in our earlier analysis about paid accounts at Megaupload. In the indictment, the government seems to assume that paid accounts are clearly all about illegal infringing works. But that's not always the case. In fact, plenty of big name artists -- especially in the hip hop world -- use the paid accounts to make themselves money. This is how they release tracks. You sign up for a paid account from services like Megaupload, which pay you if you get a ton of downloads. For big name artists, that's easy: of course you get a ton of downloads. So it's a great business model for artists: they get paid and their fans get music for free. Everyone wins. Oh... except for the old gatekeeper labels.

In fact, this is part of the ecosystem, especially in the hip hop world. It's why the artists also support those hip hop blogs that the RIAA insists are dens of pure thievery. The artists release their tracks to those blogs, knowing they'll get tons of downloads -- and actually get money. If they do deals with labels, they know they'll never see a dime. Putting music on Megaupload is a way to get paid. Working with a gatekeeper is not.

And yet... Megaupload is the criminal operation? Seems like the actual artists know otherwise.

What Busta is pointing out is that services like Megaupload -- while it may be run by some sketchy individuals and probably crossed the legal line in some cases -- are actually a great new business model for artists, while also being the future of distribution. It's a great way to distribute, make money, and let fans get the works for free. And that's why the major labels are so freaked out by cyberlockers. It's not because there's so much infringement on there, but because it's a system whereby artists can get paid and can better distribute their own works to fans... without signing an indentured servitude contract with a label, which never pays any royalties.

Did Megaupload break the law? Perhaps. But it seems clear that the real fear on the part of the RIAA and the major labels is not so much about that. It's the recognition that such a distribution and payment system undermines much of their reason for existing, and takes away their ability to control artists. A smart label would learn to embrace these things. But we're talking about the major labels here, and so instead, they run to the US government -- who clearly knows nothing about the way modern artists monetize and distribute music -- and lets them try to paint a picture of just how "evil" services like Megaupload are.

But the artists know better.

Filed Under: business models, busta rhymes, cyberlockers, diddy, disruption
Companies: megaupload, riaa, universal music

A Bunch Of RIAA Label Artists Endorse MegaUpload... As RIAA Insists It's A 'Rogue' Site

from the how's-that-working-out-for-you? dept

Supporters of PROTECT IP and SOPA are continuing to insist that they need to take down these horrible "rogue sites" to protect the artists, who they insist are being robbed blind by the sites. The US Chamber of Commerce keeps trotting out stats about how much traffic these sites get. Yet, as we noted recently, a huge percentage of the traffic that bill supporters keep insisting is "rogue" is from the sites MegaUpload and MegaVideo. So, it seems noteworthy, as TorrentFreak has revealed, that a large group of the biggest RIAA music stars have all performed on a song/video endorsing MegaUpload and how useful it is: Among the stars taking part: P Diddy, Will.i.am, Alicia Keys, Kanye West, Snoop Dogg, Chris Brown, The Game, Mary J Blige , Kim Kardashian, Floyd Mayweather and Jamie Foxx.

“When I got to send files across the globe, I use Megaupload,” declares Will.i.am, an artist signed to labels owned by RIAA-members Warner and Universal.

“When I’m sending my hits out I use Megaupload, ‘cos it’s fast. I can receive hits and I can send ‘em out,” declares P Diddy, an artist signed to Interscope, a label owned by Universal.

Kanye West, signed to Universal-owned Def Jam, likes to use Megaupload “…because it’s the fastest and safest way to send files – period.”

Alicia Keys, who is signed to Sony-owned RCA, says she uses Megaupload “….because I know that I can get my music safely and quickly -and you know that I’m serious about my music.”

Snoop Dogg, signed to EMI-owned Priority, uses it “…because it keeps the kids off the street,” and The Game (Universal) says that even his lawyers know he uses it, “…and I got plenty of them.”

And yet the RIAA, the MPAA and the US Chamber of Commerce are still insisting that MegaUpload is "rogue" and must be shut down? How's that work now?

TorrentFreak's article also reveals some other info about MegaUpload's plans -- some of which may be pretty controversial in other areas. For example, they want to get people to use a product called Megakey, which basically gives them access to "premium" services for free... but in exchange for having ads you see on other sites replaced by ads sourced from Mega. That's a lawsuit of a different nature waiting to happen. Replacing ads on other sites has resulted in lawsuits in the past. The details of how that actually work would be interesting, but I don't see how it doesn't end up tied up in court at some point.

Filed Under: cyberlockers, diddy, kanye west, pipa, protect ip, rogue sites, sopa, will.i.am
Companies: megaupload, riaa