Mr. Chairman, Mr. Berman and Members of the Subcommittee:
My name is Michael Bracy. As a founder and the Policy Director
of the Future of Music Coalition, I appreciate the opportunity to speak
with you today.
FMC was founded on the belief that the terrestrial music industry is
fundamentally broken. By that we mean that the structures that
dominate the marketplace underserve the majority of creators and music
fans. We did not form FMC simply to complain, but to effect substantive
change in the music community by injecting the critical voices of artists
and creators in the midst of this transition from analog to digital.
By including these often absent voices at this critical juncture, we
work to build more equitable and responsive models. By that we
mean:
Whenever possible, artists must maintain control over copyright and
career decisions.
Artists must be able to compete fairly in the marketplace, meaning
they must be able to receive compensation for their work and have access
to consumers
Artists must be seen by the policymaking community as
valued stakeholders in policy debates
The music community is in the midst of a necessary and welcome transition
to a digital business model. Major labels and commercial radio
stations have became integrated into huge corporations focused not on
music and culture but on maximizing revenues. The fundamental basics
of the major label structure -- the need for huge capital investment
and scarcity of promotion and retail outlets -- have been overrun by
technological innovation.
This innovation has reshaped the way that music is recorded, manufactured,
promoted and distributed. Digital studios and software programs dramatically
reduce production costs. The Internet vastly increases promotional
and sales opportunities. The marketplace for independent music has exploded,
as indie labels proliferate to serve the expanding artist community.
While much of this music is simply not aimed at the kinds of mass audiences
of interest to major labels or commercial radio, there clearly is a market
for this music, and alternate and Internet-based economies have begun
to take shape.
As these digital models take flight, many musicians are embracing new
business models that allow greater independence, direct contact with
their fans and more control over their careers. Others point out
the uncertainty of these times, and express skepticism that legitimate
digital distribution structures can be monetized at a level that would
replicate their revenue streams they are used to receiving from previous
models.
In this context, the results of a recent study performed by FMC and
the Pew Internet and American Life Project should not be surprising,
or controversial. This study found that musicians fully embrace
the Internet to promote and sell their work but remain deeply divided
over the question of file-sharing.
To a large degree, Pew found that these results could be tracked according
to demographic factors – emerging artists were more likely to embrace
file sharing services as a way to promote and distribute their work,
while established artists who made a majority of their income from being
a musician or songwriter raised more concerns.
From our standpoint, it is important to recognize that we are still
in the early days of a significant marketplace transition. While
peer-to-peer remains extraordinarily popular, a legitimate digital marketplace
is emerging. Consumers are exploring new, licensed ways of accessing
and enjoying music, including satellite radio, digital subscription services
like Rhapsody, Emusic and Napster, music blogs and ezines, the growth
of Internet radio, webcasting, podcasting and digital download stores
like iTunes. This trend demonstrates consumers’ willingness
to adopt legitimate digital services, and reinforces the critical notion
that the combination of technical innovation, access to the underlying
delivery mechanisms and reasonable licensing terms can create a revitalized
industry that serves both musicians and music fans.
The point is not that this industry is now perfect, or that we even
can see the “solution”. Rather, we all should acknowledge
that the digital transition is complicated. It includes multiple
competing markets, dependent on evolving technological innovation and
regulatory policy decisions. The future music marketplace will
be driven by consumer adoption of broadband to the home, an area full
of regulatory and technological uncertainty of its own. Spectrum
policy and the transition to digital terrestrial radio will play a significant
role in determining how consumers are able to access digital content,
and how performers will be compensated in the future.
Vigilant Congressional oversight of the transition of the music marketplace
has played a critical role in its success to date. At the
same time FMC sees a number of potential opportunities for action today. Will
Congress listen to the concerns of the music community by addressing
consolidation of the commercial radio industry and accusations of structural
payola that limit the songs that appear on the public airwaves? Will
the FCC be permitted by Congress to expand the wildly popular non-commercial
Low Power Radio licenses to urban markets? Will Digital Audio Broadcasting
be implemented in a way that addresses the fundamental concerns about
localism, competition and diversity in the radio marketplace? And
will digital radio be brought in line with other non-interactive digital
transmission platforms that are required to pay a royalty for the performance
of music?
Most importantly, will Congress be able to defend the ability of musicians
and songwriters to compete in the marketplace by ensuring access to high
speed networks? As independent entrepreneurs, musicians and songwriters
require that the fundamental open structures of the Internet remain in
place and that innovation is allowed to continue.
Over the past five years, the Future of Music Coalition has been fortunate
to collaborate with dozens of organizations, representing hundreds of
thousands of musicians, songwriters, retailers, promoters, community
broadcasters and fans. The transition to a digital economy represents
real threats and real opportunities to these communities. That
being said, there are core themes that cut across all aspects of the
music community. These shared values of artists’ control over their
copyright and careers decision, ability to compete in the marketplace
by receiving compensation for their work and accessing consumers, and
being active participants in the policy process can serve us going forward.
Thank you again for the opportunity to participate in this hearing,
and I look forward to answering your questions.
Musicians Get the Hint About Health Insurance
Two Raleigh concerts in memory of musician Drew Glackin; proceeds go to Glackin’s family and Future of Music Coalition’s Health Insurance Navigation Tool
April 10, 2008 Press release FMC's HINT program
New York State Music Education Events Examine Crucial Issues Facing Artists Forums in Rochester (April 28), Syracuse (April 29) and Albany (April 30) to focus on music, media, technology and policy issues for songwriters, composers and performers from all genres.
March 25, 2008 Event details | RSVP
Pop Rockers OK Go "Tour" Congress in Support of Net Neutrality
Damian Kulash and Andy Ross discuss the importance of open Internet structures to musicians; Kulash testifies before House Judiciary Committee.
March 13, 2008 Press release
Spoken testimony
Written testimony
Rock the Net
New York State Music Education Events Examine Crucial Issues Facing Artists Kick-off forum in Buffalo on April 2 to focus on music, media, technology and policy issues for songwriters, composers and performers from all genres. March 7, 2008 | Event details
Philly Bands Rocking for Net Neutrality February 23 Sugar Town show at Tritone in Philadelphia will showcase lady rockers and DJs, as well as musicians' support for net neutrality. February 15, 2008
OK Go and Bonerama Rocked DC for New Orleans Musicians Bands also champion FMC's "Rock the Net" campaign for net neutrality February 2 benefit show at DC's 9:30 Club raised over $8,000 for New Orleans musicians. Bands played cuts off their new benefit EP, You're Not Alone, available on iTunes on February 5. February 4, 2008
Upcoming Washington, DC show and benefit EP from OK Go & Bonerama
On February 2, OK Go and Bonerama will play a benefit at D.C.'s 9:30 Club in support of You're Not Alone - an EP to support Sweet Home New Orleans and Al "Carnival Time" Johnson. January 21, 2008
Successful New Orleans Concerts Aid Big Easy Musicians
Last week, two benefit concerts raised over $6,000 for Sweet Home New Orleans - a coalition of non-profit organizations that helps find affordable housing and provides rental assistance for the city's musicians - and Big Easy music legend Al "Carnival Time" Johnson.
January 15, 2008 Press release | Event details
Ann Chaitovitz Appointed
FMC's New Executive Director A proven leader in musician and public policy issues, Chaitovitz replaces founding Executive Director Jenny Toomey January 3, 2008
Concerts for New Orleans Musicians Bring Artists Together Two New Orleans shows and upcoming benefit CD from OK Go and Bonerama January 2, 2008
FMC's Jenny Toomey Appointed Program Officer for Ford Foundation
Kristin Thomson to Serve as FMC’s Interim Executive Director Michael Bracy to Chair FMC Board of Directors November 26, 2007
Seattle "Rocked the Net" Rep. Jay Inslee advocated network neutrality;
joined by rocker Matt Nathanson, Reclaim the Media, FMC and local music business representatives October 31, 2007
Rock the Net: Campaign for Net Neutrality Rocks Seattle
Teleconference with Rep Jay Inslee on Tuesday, Oct 30. Matt Nathanson performs at Seattle’s Crocodile Café on Tuesday, Oct. 30 October 26, 2007
Future of Music Policy Summit to Tackle Critical Issues at the Intersection of Music, Law, Technology and Policy Sen. Byron Dorgan and Sen. Ron Wyden to Deliver Keynote Addresses
Mac McCaughan, Bob Mould, Marybeth Peters of the U.S. Copyright Office and More Than 90 Other Panelists Confirmed. September 10, 2007 Summit home page Press Credentialing
AT&T's muting of bands points toward a pattern of silencing political speech Content monitor did not edit out 20 instances of curse words during Pearl Jam webcast, despite AT&T claim it hires monitors to block "excessive profanity". August 13, 2007
Top musicians, lawyers, technologists confirmed for FMC's 7th annual Policy Summit August 13, 2007 Press Release Summit home page Press Credentialing
FMC Statement on AT&T Silencing Pearl Jam's lyrics during Lollapalooza webcast August 9, 2007
FMC Statement on Federal Trade Commission Report on Net Neutrality June 29, 2007
FMC files testimony with House Small Business Committee on CRB Webcasting Rates June 27, 2007 Press Release | Testimony
Clear Channel strips local, independent artists of digital performance royalties
FMC has discovered that Clear Channel's online application for local and independent artists to submit their music for airplay on each of its stations requires the artist to approve a licensing agreement that does away with their digital performance right. June 22, 2007
Low Power Radio Gets New Push in Congress
Congress introduces bills to create hundreds of new low power FM radio stations to cities and suburbs across the country. June 22, 2007
FMC Announces Dates for 7th annual Policy Summit
September 17-18, 2007
GWU Betts Theatre, Washington, DC June 11, 2007
FMC Organizes "Musicians Bringing Musicians Home II"
A Benefit Concert on May 27 at New Orleans' Tipitina's for Sweet Home New Orleans featuring: Indigo Girls, Damian Kulash of OK Go, Jim James of My Morning Jacket, Matt Nathanson, Pamela Z...and special guests
May 23, 2007 Press Release | Details
Congressman Mike Doyle to address conference on music, law and technology
May 2 event will bring together leading experts from worlds of music, law, technology and policy. April 25, 2007
A2IM Endorses Rock the Net Campaign
American Association of Independent Music urges its label members to join the campaign for network neutrality. April 17, 2007
Music Mashes with Policy at upcoming Technology and IP Policy Day
May 2 event will bring together leading experts from worlds of music, law, technology and policy. April 16, 2007
FMC Applauds FCC's Payola Settlement
Payola agreement by FCC and big broadcast chains represents a major - but tentative - step toward once again opening the nation's airwaves to local music and voices. April 13, 2007
Rep. Edward Markey, Ted Leo kick off "Rock the Net"
Nearly 150 artists and labels have already signed onto campaign for net neutrality
March 27, 2007 Press Release | Rock the Net
Major Artists To Join Launch of Rock the Net Campaign for Net Neutrality March 23, 2007
FMC Statement on FCC's "Rules of Engagement" On Payola March 5, 2007
FMC Files Reply Comments in FCC Media Ownership Proceeding January 16, 2007
FMC Statement on FCC Payola Settlement
FMC's statement on FCC's reported consent decree with the broadcast industry in regards to payola. January 16, 2007
Radio Station Ownership Consolidation Shown to Harm Musicians and the Public
FMC study shows that the rapid consolidation of the commercial radio industry that followed the Telecommunications Act of 1996 has led to a loss of localism, less competition, fewer viewpoints and less diversity in radio programming in media markets across the country.
December 13, 2006 Press release Report details
FMC Organizes Musicians Bringing Musicians Home Benefit concert at New Orleans' Tipitina's on November 6th featuring Steve Earle, Mike Mills, Allison Moorer, Tom Morello, Boots Riley, Corin Tucker and special guests.
October 23, 2006 Read press release Read press coverage
Job
Losses Associated with Radio Consolidation Undermine Localism and Diversity FMC, Newspaper Guild and Consumers Union urge FCC to take employment effects
of their policies into account during upcoming review of media ownership rules August 9, 2006
FMC Releases Research on Employment and Wage Effects of Radio Consolidaton August 9, 2006
FMC on Preserving the Dynamism of the Internet Opinion Piece on ABC News June 29, 2006
FMC Statement on Senate Commerce Committee Vote in Support of LPFM June 28, 2006
FMC Statement on FCC Media Ownership Proceeding June 21, 2006
Indie-rock revolution, fueled by net neutrality Op-ed by FMC's Jenny Toomey and Michael Bracy June 13, 2006
Pearl Jam Donation To Help Musicians Help Themselves Proceeds From Washington, DC Appearance to be Donated to FMC Artist Research
Council May 25, 2006 Press Release
FMC signs on letter to preserve net neutrality May 17, 2006
FMC Announces Dates for Sixth Annual Future of Music Policy Summit
October 5-7, 2006 Media Advisory May 15, 2006
FMC Statement on Release of Feingold's Radio and Concert Disclosure
and Competition Act of 2005 November 18, 2005
FMC Sends Letter to Senate Commerce Committee in Support of a
Public Performance Right for Sound Recordings October 19, 2005
Top Names in Music, Law, Technology and Policy Return to Debate Critical
Issues at Fifth Annual Future of Music Policy Summit
September 6, 2005 Media Advisory | Policy
Summit home page
FMC Announces Health Insurance Navigation Tool
August 9, 2005 HINT Home Page
FMC Press Release: Music Mashes with Policy at DC Policy Day April 8, 2005
FMC's Michael Bracy Testifies in front
of House Judiciary Committee on "Digital Music Interoperability" April 6, 2005
FMC files comments at US Copyright Office on "Orphan
Works"
Comments also ask Copyright
Office to consider status of out-of-print recordings March 25, 2005
FMC Sends Letter to Senate Stating Concerns about S 193, Broadcast Decency Enforcement
Act March
10, 2005
FMC and artist groups file joint reply comments at FCC on localism in broadcasting,
MB Docket 04-233
January
3, 2005 PDF of document
