music industry bullshit Archive

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Just Bring Spotify To The US Already

By
Andy Yen
– Posted on September 9, 2010Posted in: Features, Music, Music Industry, Technology

It’s been almost two years since Spotify launched in Europe – why in the hell isn’t it out in the US yet?

Yeah, yeah, the question is rhetorical because what other reason is there for blocking the domestic release of what Lifehacker calls “the best desktop music player we’ve ever used?”

Raise your hand if you guessed right – The reason why Spotify isn’t out yet is because of our old bumbling nemesis, the major record labels!

Before we dig in, I want to reiterate why Spotify is so compelling a product. The excitement of what Spotify offers isn’t so much the actual product it peddles. There are already a handful of music services that offer unlimited music playback for a monthly fee. Its main draw is that it employs a ad-supported freemium model where anyone can listen to music without charge initially. If you like the service you can pay for other compelling perks such as mobile device playback or higher quality playback.

I think the music monetization problem is twofold. The first is finding a means in delivering music to people that isn’t cumbersome and cost-prohibitive to the consumer. This is a problem that is more or less solved by Spotify. It’s easy to use, delivers accurate results, is the right price, and even incorporates innovative features like playlist collaboration/browser based sharing. The service itself appears to be a great product, worthy of people’s time. It’s not a trivial accomplishment, as most other “legitimate” music services have failed miserably at this throughout the years, including the vaunted iTunes.

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Edgar Bronfman Needs More Money

By
Andy Yen
– Posted on August 12, 2008Posted in: Music, Music Industry, Video Games

edgar bronfman moar fail money

Not content with totally mishandling the music industry’s disastrous “transition” into the iPod age, Warner Music CEO, Edgar Bronfman Jr., has started down the path of bungling yet another potential revenue stream.  With the recent explosion in popularity (and sales) of Guitar Hero and Rock Band, it was only a matter of time before someone had to open their big mouth.  The churlish executive told Reuters:

The amount being paid to the music industry, even though their games are entirely dependent on the content we own and control, is far too small.

Now, to be fair, no specifics were given as to how much the record labels are actually getting paid for the use of their music recordings in the games.  It’s certainly possible that the game industry is not paying enough.  Let’s forget for a minute all the other components that make Guitar Hero/Rock Band successful (development costs, peripheral manufacturing, distribution, marketing, etc.) and play Ed’s game.  If I had to guess, I’d posit that the current cut for music in rhythm games is close, if not the same, as a digital download on iTunes.  Our pal Eddie must have seen this, and thought, “Hay! Activision is charging double the price of iTunes, but we’re only getting the same as El Jobso.  Let me talk to the press, they will surely be on our side!”

Sarcasm aside, Eduardo and the rest of the music industry really need to think before they speak.  Even if they are getting the shaft, it would be much more productive to solve the issue behind closed doors.  Coming out and complaining to the press in a haughty tone is not going to help their situation any.  To the contrary, it’ll just serve as blogger and message board fodder to further drag the music industry through the mud.

Not that the record labels really need any more help with that.

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Metallica Still Trying To Figure Out How To Sell Their Music, Debut New Song

By
Andy Yen
– Posted on August 11, 2008Posted in: Music, Music Industry

metallica fail digital download rip off

The Rock Radio reports that Metallica has decided on the pricing structure and SKUs of their upcoming new album, Death Magnetic.

The first package, called Digital Death Magnetic, will cost $24.99 and includes digital delivery of the album at midnight on its release date, downloads of two entire shows from this summer, almost two hours of exclusive behind-the-scenes footage, 250 exclusive photos, ringtones of riffs from the new album, access to exclusive contests and a $10 coupon toward merchandise or fan club membership at Metallica.com or MetClub.com.

The second package, Death Magnetic CD + Digital Death Magnetic, is $32.99. In addition to all the above items, it includes Death Magnetic on CD. The last package goes for $124.99 and includes all the items from the other two packages, plus a five-LP vinyl box set with five individual sleeves and a Mission: Metallica lithograph.

It looks like the band is taking a little bit out of Radiohead and Nine Inch Nails’ playbooks by offering both a digital download and a very pricey premium edition of the music.  Sadly, Metallica is so blinded by the visions of moneyhats that it missed out on the most obvious tactic of offering a digital download in the first place – free (or at least cheap).

Sure, the Metallica superfans are going to shell out for the highest end premium product, but what about after that?  Do they really think a casual fan or a teenager discovering the band now is going to spend $24.95 on a download?  The band arguably hasn’t made any truly relevant music since 1991’s self-titled “Black” album.  I would argue that Death Magnetic‘s success isn’t exactly a guarantee, especially in today’s climate.  If they really wanted to take advantage of the current music market landscape, they would be looking for ways to expand their audience and fanbase, while also taking care of their core audience.

On a related note, the band debuted a couple of new songs while playing live at Ozzfest a couple days ago.  Check after the jump for a live recording of “Cyanide” off of Death Magnetic.

My initial impression? Better than St. Anger.  But that’s not really saying much, is it?

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What Being Nominated For A Grammy Gets You

By
Andy Yen
– Posted on May 5, 2008Posted in: Music

kt tunstall fail

I just got an email from Goldstar Events telling me that I could have “comped” tickets to a KT Tunstall show at the Wiltern in LA, presumably because no one bought tickets to the show.

The sad thing is, the Wiltern is only about a mid-sized theater venue, seating roughly 2,500 people.  It’s not as if she was trying to play a large arena way over her head.

It just goes to show that being a successful touring artist has nothing to do with your Grammy nominations, Grey’s Anatomy soundtrack appearances, or Billboard Hot 100 single entries.

A shame, though, I kinda liked “Black Horse and the Cherry Tree.”  But not enough to take free tickets to a local show.  Gas is expensive these days, you know.

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I <3 The Music Industry

By
Andy Yen
– Posted on March 14, 2008Posted in: Music Industry

peter rojas zing

paidContent‘s Joseph Wiesenthal was in attendance at a SXSW panel this week entitled “Ad Supported Music, A New Hope For The Industry?” when things apparently got a little chippy. Peter Rojas of RCRD LBL and Interscope’s Ted Mico got into what could only be described as a sexy male catfight:

As for the ‘old’ digital model, he [Rojas] suggested that the only people he knows who buy tracks from iTunes are people who get giftcards from grandparents for Christmas. By this point, audience members started getting agitated. One screamed out something about Rojas disregarding intellectual property.” Mico suggested that it was silly for Rojas to disclaim the traditional model since he called his site RCRD LBL (it’s pronounced ‘record label’) “It’s obviously a bow to the past.. The idea that oh it’s a blog and oh it’s radically different is bllsht.” Then Rojas returned with: “The different is is that we make money.” (Zing!) Mico: “You’re (still) selling music!”

I love it! This is the kind of stuff we need to see more often in the music industry. It’s a good change of pace to have a little mudslinging soften the apocalyptic overtones I always hear whenever someone talks about the industry. I’m disappointed I didn’t get to make it out for this. Those of you who who avoid the panels at SXSW, who’s laughing now? Would you rather hear grown executives sling potty at each other or see Indie Xerox Band #23?

Someone tell me there’s a panel with Bill Nguyen from lala.com and Bob Lefsetz PLEASE!

Read an account of the panel [paidContent.org]

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I Can’t Believe You’ve Done This

By
Andy Yen
– Posted on December 11, 2007Posted in: Music

In a move that even our British internet video friend would not accept, the RIAA is now claiming that MP3s that you have ripped from CDs you have purchased are unauthorized copies. That’s right, the very existence of digital music in the-file-format-which-must-not-be-named is an affront to all that is lawful and just. Forget about the fact that RIAA lawyers have already admitted ripping CDs for personal use is legal. Hypocrisy is only a speed bump on the path to oblivion.

I know I said I would not be surprised at anything the record labels do anymore, but come on. Really? Honestly, I wouldn’t be surprised if the real record labels have anything to do with the RIAA anymore other than in name. As clueless as the major record label heads are, there is no way any sane person can fail to see what a detriment to health of the music industry the RIAA is. What exactly is it trying to do here? Even if they win every pending lawsuit, do they really think people are going back to buying cartloads of $18 CDs just like the good ol’ days?

Nay, the RIAA is a monster that is out of the control of those who have created it. But unlike horrific human creations such as the Cylons or Terminators, the RIAA becomes less terrifying and more cuddly with each action it takes.

via [gizmodo]

via [recording industry vs. the people]

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Satellite Radio Gets Off Easy

By
Andy Yen
– Posted on December 5, 2007Posted in: Music

getawayThe Copyright Royalty Board just finalized the new royalty rates that satellite radio providers will pay for the next 5 years.

Under the terms of the CRB Satellite Radio Services, XM will pay a performance license rate of 6.0% of those gross revenues subject to the fees for 2007 and 2008, 6.5% for 2009, 7.0% for 2010, 7.5% for 2011 and 8.0% for 2012.

This seems like a pretty sweet deal for XM and Sirius, with a modest rate increase over 6 years. Gary Parsens, chairman of XM radio seems pretty ecstatic over the decision:

“Moreover, the music performance fees set by the CRB are in the range projected by many financial analysts who cover this industry.”

Now, while satellite radio isn’t a money printing enterprise, it sure as hell has a lot more revenue generation going on for it than internet radio. OEM partnerships with a multitude of automobile manufacturers, portable devices, aftermarket add-ons for existing automobiles, internet subscriptions, the list goes on. Would someone care to explain to me how on earth the CRB decided the internet radio royalty increases were the least bit fair in light of this? Not only is the CRB/SoundExchange imposing a higher royalty rate on internet radio, they aren’t even offering the option of a revenue-based royalty payment scheme.

wat.

Read more [money.cnn.com]

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Internet Radio Sucks It From SoundExchange

By
Andy Yen
– Posted on December 2, 2007Posted in: Articles, Music

Bloomberg recently reported that AOL, Yahoo!, and Pandora are considering shutting down their internet radio operations due to the continued refusal of SoundExchange (the arm of the RIAA that collects royalty fees) to lower their preposterous royalty rate increases for song plays.

Siding with the music companies, the board in March ordered that royalties be raised to 0.11 cent for each song listened to from 0.08 cent last year. The rate is scheduled to reach 0.19 cent in 2010.

“The current math doesn’t add up,” said Lisa Namerow, managing director of AOL Radio in Dulles, Virginia. “If the rates remain as they are, it would be very challenging to sustain a business that is profitable.”

It may seem trivial when we are talking about fractions of a cent, but keep in mind this is for each play of each song for each user. When you start multiplying millions by thousands, you’re talking about significant number of pennies per year. Don’t forget that the rates are essentially doubling in the span of a few years.

The thing that caught my eye was the revelation that both Yahoo and AOL experienced a 10-11% decline in users last month. The Bloomberg report says it was due to AOL and Yahoo not linking to their radio sites anymore, but I’m still able to see links from their respective music home pages. Perhaps both companies pulled advertising or intra-site promotions. Regardless, this development is very troublesome and a portent of doom for the nascent internet radio industry.
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Doug Morris Is Easy To Bullshit

By
Andy Yen
– Posted on November 26, 2007Posted in: Music

Wired’s December issue has an insightful interview with Universal CEO Doug Morris in which the embattled executive readily admits to being so ignorant about technology that he didn’t even try to learn how to capitalize on the digital music revolution at the turn of the century. The interview isn’t posted online yet Read the interview here, but this choice excerpt sums it all up:

“There’s no one in the record industry that’s a technologist,” Morris explains. “That’s a misconception writers make all the time, that the record industry missed this. They didn’t. They just didn’t know what to do. It’s like if you were suddenly asked to operate on your dog to remove his kidney. What would you do?”
Personally, I would hire a vet. But to Morris, even that wasn’t an option. “We didn’t know who to hire,” he says, becoming more agitated. “I wouldn’t be able to recognize a good technology person — anyone with a good bullshit story would have gotten past me.”

wat.

It boggles my mind that an entire industry of “business savvy” executives were so myopic, egoistic, and just plain stupid as to not even learn who to talk to about the impact of digital music. I imagine Morris is exaggerating a little bit here. Out of the thousands of employees that worked for the majors in the golden age of 1.1 million first week *NSYNC CD sales, there were at least a handful of people who saw what was coming. Nay, the real problem was the music business’ stubbornness in adapting to the times. In an industry where you’re only as good as your latest numbers, there was no incentive for anyone to look at any sort of long term growth or stability. It was (and to an extent, still is) all about hitting your quarterly numbers no matter the cost. The more likely scenario is that prescient employees drafted up hundreds of pages of meticulously researched reports that were placed in the inboxes of various record label executives only to be summarily ignored and trashed because they had nothing to do with making the 4th quarter margins.

The interview goes on to talk about Universal’s Total Music venture and how Morris’s primary objective nowadays is to unseat iTunes from power. Again, Dougy is missing the point here. Guy, we’re in 2007. No one cares about you trying to show that you have a bigger dick than Steve Jobs. What you should be trying to do is creating a service with the music fan in mind. Make something that puts both Napster circa 2000 and iTunes to shame.

In other words, clone OiNK.

Update: Wired now has the interview online here 

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Trent Reznor Is Being Kept Down By The Man

By
Andy Yen
– Posted on November 21, 2007Posted in: Music

Nine Inch Nails’ official site for fan produced remixes of Year Zero was supposed to launch last Monday. Unfortunately, according to a post by Trent Reznor on the band’s website, legal issues brought upon by Universal Records, the band’s former label, are the cause of the site’s delay.

Universal feels that if they host our remix site, they will be opening themselves up to the accusation that they are sponsoring the same technical violation of copyright they are suing these companies for. Their premise is that if any fan decides to remix one of my masters with material Universal doesn’t own – a “mash-up”, a sample, whatever – and upload it to the site, there is no safe harbor under the DMCA (according to Universal) and they will be doing exactly what MySpace and YouTube are doing.

While Universal’s legal concerns are legitimate, the overall situation is, in one word, bullshit. Doing exactly “what MySpace and YouTube are doing” is building your consumer base. It’s nice that Universal isn’t so myopic as to prevent Reznor from launching the site, but by taking this course of action, they are implicitly condoning “what MySpace and YouTube are doing”.

Situations like this are exactly why the major labels are fading into irrelevancy. Like the Napster situation before it, if only someone saw user generated content as an opportunity to evolve the way their business instead of futilely trying to stop the juggernaut of technological evolution, they might not be in the situation they are in now. Unfortunately, they tying their own nooses with legal red tape.

Read Trent’s Post [nin.com]

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