You may have heard about controversies over unpaid mechanical royalties on the interactive streaming service Spotify. For us, the bottom line is that songwriters must be properly paid when their music is played on any service. In this post, we’ll examine the reasons this isn’t happening across the board.
First, it might be helpful to understand a bit more about what a mechanical royalty is, how it is licensed and whom it pays. read more
In February 2014, 19 Recordings—a record label representing artists from the TV show “American Idol” like Kelly Clarkson and Carrie Underwood—sued Sony Music for allegedly withholding royalty payments totaling $7 million. In March of this year, U.S. District Court Judge Ronnie Abrams issued a ruling allowing some of these claims to go to trial. The upshot is that, while some components of the case will move forward, the court decided that others don’t hold water. Even more recently, Sony swung back with allegations of fiduciary mismanagement at 19.
Every so often your pals at FMC take the weekend to do stuff like… make music. Seems like whenever we do, a major industry story breaks.
To wit: Taylor Swift’s open letter to Apple regarding the “free trial” period for Apple Music, during which the 12th largest company in world decided it would not be paying royalties to artists and rightsholders.read more
As expected, Apple announced its forthcoming music streaming service on Monday at its annual WorldWide Developers Conference. The service is scheduled to launch at the end of June, and naturally, our primary focus is on how the new offerings will impact musicians. The presentation was short on details, but here are some of the questions we’ve been wrestling with (and some partial answers)
Assuming the contract’s authenticity, there’s not a lot in there that’s particularly revelatory for those of us who’ve been closely following the ongoing debates over on-demand streaming services. However, it does offer confirmation of certain controversial practices, and a snapshot of some of the dynamics associated with service design. Here are some key points to keep in mind.
It’s no secret that debates over the role and structure of on-demand streaming services continue to be a source of ongoing controversy. Unfortunately, too often, these debates are framed in terms of the impacts on the largest commercial players or net industry revenues. This can be valuable as an entry point, but it can also be flattening; streaming critics and supporters alike may have a diverse range of reasons for the opinions they hold. Part of what we try to do at FMC is encourage a deeper understanding of the full breadth of independent perspectives, and to that end, we’ll be hosting a series of guest posts exploring the streaming issue from multiple angles. To kick it off, here’s some thoughts from Joe Steinhardt, owner of independent label Don Giovanni Records and a PhD Candidate in Communication at Cornell.
I’ve talked a lot about Taylor Swift these past couple of weeks. She’s a bona fide superstar, and people wanna know what’s up with her decision to pull catalog from Spotify. But all the hullaboo has also created opportunities to discuss how the current marketplace works for artists who aren’t among music’s one percent. The musicians and songwriters I know are hardly lazy or entitled; they want to pursue artistic excellence and have that excellence rewarded. Everyone at FMC is delighted that artists are speaking up and helping to refocus the debate from the tired “content versus tech” binary. Because that leaves an awful lot of important stuff out.
Streaming music is getting a lot of attention lately. Some of this is because country/pop superstar Taylor Swift removed her catalog from Spotify, and majormediaoutlets like to ask folks like us what it means. But Spotify isn’t the only streaming game in town: there’s also Internet radio, which is an entirely different animal when it comes to how royalty rates are calculated and how musicians are paid.
By guest blogger Taylor Lambert and Kevin Erickson
In the age of on-demand streaming, it’s common to hear people talk about music as “limitless”— something that flows forth endlessly like water. Indeed, musicians around the world release a huge volume of new music every day. But in practice, most consumers’ exposure to the world of new music is extremely limited. It’s one of the thorniest problems—if there’s so much music out there, why do consumers end up being exposed to so little of it? Why should the music marketplace be a winner-take-all system?
Of course, whether or not you view this as a problem to be solved could depend on whether you’re fortunate enough to be one of the “winners.” Still, media critics have long pointed to the role of gatekeepers who exercise considerable control what music reaches audiences. From radio programmers to retail managers to talent buyers to music reviewers and beyond, the most powerful labels do their best to keep their offerings front and center—often at the expense of independents. Radio is the still the number one source of “music discovery,” but commercial AM/FM radio broadcasters in this era of ownership consolidation tend to be highly risk-averse in their programming choices. Playlists are narrow and repetitive, as our research has documented. It has been the strong hope of the independent sector that online music services would be more democratic, allowing more artists to find audiences than was possible in the old-school media world.