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Our entire company (www.earbits.com) is built on the premise that more value can be created for artists out of streaming radio by using it as a fan acquisition
by earbitscom 13y ago
Our entire company (www.earbits.com) is built on the premise that more value can be created for artists out of streaming radio by using it as a fan acquisition tool and marketing platform for the artists and labels than by using it to sell commercials and ads. Without a doubt, the per-stream value created by the ad supported model is a relative joke, but despite my desire for artists to get more value out of streaming and the fact that Pandora is my competitor for listener usage, I continue to side with Pandora on most of these issues.
There is no reason why iHeartRadio should pay less than them because it's owned by Clear Channel. There is no reason they should keep paying ASCAP the same percentage of their revenue for royalties after someone as big as Sony ATV pulls their catalog from ASCAP representation. The Internet Radio Fairness Act was not about necessarily reducing royalties, but ensuring that all companies streaming digitally pay the same percentage of revenue. It makes absolutely no sense to me that everyone is focused on Pandora trying to reduce their rates to the same level as their competitors, instead of focusing on the fact that those competitors already pay less.
Compulsory rates that work for these companies are the best opportunity for independent artists to participate in this market. If you force these companies to secure direct deals with labels because the compulsory rates are not equitable, you will get what just happened with iTunes Radio. They will forge sweetheart deals with the major labels and treat indies like a nice-to-have group of second class citizens.
The artist community should be working harder to increase royalties paid by the companies already enjoying massive discounts. The artist community should be interested in making their music as easy to license as possible, a la compulsory licenses. If you make the rates unsustainable, and even worse, push the revenues through label accounting departments, artists will be left in the cold and have most of their share kept by labels.
Pandora has definitely gone about this in a way that hasn't worked in terms of PR, but it is unfathomable to me that all of a sudden everybody on earth forgets that the person on the other side of this issue is the RIAA. Nothing the RIAA has ever done was good for consumers or artists. Why on earth would it be now?
Pandora pays more royalties than any other type of radio broadcaster. It's time to make other companies pay more, while finding a rate and system that works for everybody and doesn't require direct licensing. Any other situation does not bode well for artists.
- jcampbell1 13y ago> Our entire company (www.earbits.com) is built on the premise ... that pay to play is okay. I agree with your company's business model. The rest of your comment is informed, but you should lead with less bullshit lingo.
- earbitscom 13y agoCompanies only do well what makes them money. We designed our business to be good at helping artists, so yes, that's why we made them our clients. We're not shy about it.
- adventured 13y agoThe only approach that makes sense is to abolish the RIAA and get artists to abandon the major labels. The closest to a 100% royalty payout for artists that can be accomplished, is the only future that should be fought for. As it is, the middle man is eating almost all of the profits that should be going to artists. Higher payouts won't change the fact that artists are getting screwed on the % cut and have been for a very long time.
- tptacek 13y agoNothing the RIAA has ever done was good for consumers or artists. Why on earth would it be now? Worth repeating Lowery's claim: the major label system worked somewhat like the VC system: hit artists made huge amounts of money on royalties, but midlist artists didn't; on the other hand, midlist artists got advances calibrated to their expected sales that locked in a middle class lifestyle. It was, as Lowery explains it, possible for a midlist artist to make a decent living selling music under the label system. According to Lowery, midlist artists are totally shafted today. They get no advances, they get a pittance from royalties, and, contrary to popular opinion, they don't make a decent living from 2/3rds sold out club concerts.
- dylangs1030 13y agoAre there credible stats that can corroborate this (especially the 2/3rds bit), or is it just Lowery's word?