[steriX] Music and Entertainment News

In the short number of steriX posts one common theme has been what to do about the future of music.  How should it payed for? Where should it be accessible? Should we be paying for it?  These as well as many other questions still remain without answers and you can search the internet and interview professionals, but no one can truly know for sure.  This is part of what makes the industry so interesting today, it is a very crucial stage.  While perusing the internet myself I came across this article on one of my favorite sites, www.thefutureofmusicbook.com.  Feel free to click the link and read what the author had to say. If you want the gist of it, a Forbes article from 2005 (way back when) is reposted concerning the future of music.  It touches on the basics, mainly how the digital age is here, the old model is out, and new method needs to be adopted.  An old concept at this point.  But having come across this particular article for the first time personally I found it intriguing.  I have blogged regarding possible way the the “new model” can go.  But this concept did not cross my mind.  If you didn’t read the link or get what it is from the title of this blog, the Forbes article’s author is proposing the music going forward should be treated as a utility.

Wild concept? I suppose not, why is it any different then cable, movies and the like.  I mean its not like other types of creative works are not being pirated as well as music.  And true, traditionally music was not available in a form that it could be bought and sold and distributed like television, for example.  But now you can basically get anything from anywhere and can access everything in the same medium.  I mean really, how is this much different then subscribing to itunes or similar online music stores? If fact, while limited in the U.S., one U.K. based site is basically a stock broker for songs and bands (www.slicethepie.com).  Another sign that the 2005 Forbes prediction/suggestion is becoming closer to reality, at least in some form, is that some of the major labels are in discussion with universities around America so that a license would be granted to college to students to legally download music and share on P2P networks with other students (my guess would be that facebook or myspace would love to get involved too).  Truth be told that is not a bad idea itself, the majors make sure they get some compensation for their artists copyrights works, artists get more incentive to be with a major label, and universities get to charge even more money.  What do students care, Mom and Dad will pay, not like private school costs have not been skyrocketing.

So do I think that music will someday be mixed in with other monthly costs? I would have to say probably not, at least not as simple as other utilities are.  Too many smaller labels, indie labels, etc. are around and this could seriously hurt their artists opportunities to be heard.  The majors I’m sure would love it.  But for now, I’m going to say that the future business model is still TBD.

The American Society of Composers, Authors, and Publishers, (ASCAP) “ is a membership association of more than 315,000 U.S. composers, songwriters, lyricists, and music publishers of every kind of music. Through agreements with affiliated international societies, ASCAP also represents hundreds of thousands of music creators worldwide. ASCAP is the only U.S. performing rights organization created and controlled by composers, songwriters and music publishers, with a Board of Directors elected by and from the membership. ASCAP protects the rights of its members by licensing and distributing royalties for the non-dramatic public performances of their copyrighted works. ASCAP’s licensees encompass all who want to perform copyrighted music publicly. ASCAP makes giving and obtaining permission to perform music simple for both creators and users of music.  (www.ascap.com) 

ASCPA, in defenses of its members, is bringing suit for copyright infringment for what they feel is illegal use of copyrighted material in bars and clubs. What this does is let ASCAP member knows that its organization is fighting for them, insuring that they don’t ripped of (as badly) from royalties they are due and also raises awareness to all night club owners that someone is watching.  Most late night spot owners might not think this rights are going to be enforces by anyone, probably none of them are even aware that what they are doing is a violation of federal law. Well, if you are going get in to the business be aware, someone is always watching.  And, FYI, you can always get a legal license, just might cost you (but isn’t that what makes America great?).

ASCAP INITIATES INFRINGEMENT ACTIONS AGAINST NIGHTCLUBS,
BARS AND RESTAURANTS PERFORMING COPYRIGHTED MUSIC
WITHOUT PERMISSION

If you are to any degree familiar with the computer, internet, etc. then you no doubt have more than heard of, used, or contributed to websites such as Wikipedia and MySpace.  Chances are, if you are computer/technology friendly enough to reading this blog then you are more than aware of those types of websites.  The connection between MySpace and music may be an easy on to make, may bands create an account and promote their band and music this way, in fact it is an easy way for others to get free access to your music, although it opens you to potential copyright infringers/piraters (an issue to be addressed at a later time, and if you worried about such things contact us a SteriX.)  Wikipedia, well you might not connect them as easily, other than that you can get information regarding the artist, genre etc. (which may or may not be accurate).  So then what is the impact they have and why devote a blog to making note of this impact?

MySpace could no longer be solely the type of entity as described above with regards to music.  Because of MySpace’s access to so many and for free major labels (Warner and Sony BMG) are currently in talks to enter into licensing deals.  More advanced music-related services (as opposed to user ability to post/stream) could be offered by MySpace as early as the end of 2008, under MySpace Music. This would another unique type of licensing deal based on equity and advertising shares as well as offering a mix of pay-per-download and ad-supported video and audio.  For Sony it is not as much as leap as they have had prior agreements with MySpace, but it is a big move for Warner, especially as they seem to be a step a head in this model than other majors EMI and Universal (who has recently been engaged in legal battle with News Corp., the owner of MySpace.)  http://www.nypost.com/seven/03242008/business/digital_destiny_103302.htm

 The influence of Wikipedia is not as great.  But as this “search engine/information provider” gains popularity it should be kept in mind, despite the leaps and bounds the MySpace may potential make in the music industry, when it comes to research and need of a source of information, Wikipedia is the preferred method for searchers.

 You can follow on the articles in the archives of Digital Music New, March 2008

Another major band goes sans label/album. Among the most recent groups to follow the recent trend of alternative business methods is Smashing Pumpkins. They too no longer feel that it is necessary to stick to the traditional record label and album sale method. Look for new Pumpkin releases to come out on digital medium in bundles.

For more on this story see what DMN had to say: http://www.digitalmusicnews.com/stories/032008pumpkins

It’s no secret that the “digital age” has had a significant impact on the music industry and how things are done from the top down.  Be it “360 deals” becoming more popular, major artists leaving the majors, or artists going through unconventional methods (see Nine Inch Nails and Radiohead), this is not the late 20th century business model any more.  So what does it mean and what’s next?  Well, the truth is that nobody knows and for the time being it might depend as a case by case basis.  The internet and online distribution, be it The Orchard, Snow Cap, Amie Street, Slice The Pie, or any of numerous other (and varying in methodology) has threatened to make obsolete a physical version of music, specifically CD’s.  Some believe that as consumer we will always want a physical copy in some form, if for no other reason than as collectibles.  This could be accomplished by selling memory cards in fancy packaging, don’t be surprised to see Scan Disc have a role in this.  Others believe that having extras on the CD is a viable answer, for example, CD/DVD combos, interview, etc.

The whole situation is very interesting from business and legal perspectives.  On the business side, power is shifting away from the majors and more to the artists.  There is no standard way of doing business and many opportunities are opening for anyone to step and use their creativity to get things done based on new inventive business models.  The truth is that the majors still have a lot of power left and they are trying to adopt to the changing environment by becoming players in the digital age.  But new players are emerging as well, such as Amazon who has been very active in expanding its digital library.  Legally, court dockets all over the country, and the world, are cluttered with cases regarding P2P file sharing, copyright infringement, and other areas.  Additionally new legislation is being considered on these issues.  But one problem that will always remain is that the law cannot keep up with technology or predict the currently unsettled state of the music industry.  What you can be sure of is that it is a very interesting and compelling time, be it as an insider or outsider.

See some of the below sites for more info:

One of the hottest topics concerning the recording industry over the past several years has been the impact of P2P file sharing networks, such as KaZaa. Some of the more highly publicized cases in the U.S. are Capitol Records, et al v. Jammie Thomas and Atlantic v. Howell. Both cases involving infringement suits being brought by the RIAA and other parties against individuals allegedly “infringing” and violating copyright law. Short of getting in to the specifics, the issue of liability for file sharing is yet to be settled in the United States. But, of course, this is not just a domestic problem. Billboard.biz reported today about a strange decision in Italy regarding “illegal file sharing”. Apparently European record companies have been permitted to gather IP addresses of consumers who are engaged in file sharing and use that information to obtain home addresses in order to mail letters informing them to essential cease and desist these activities. See http://www.billboard.biz/bbbiz/content_display/industry/e3i4b1f1f7f2a01d2b366c41f2fd31130b7.

It is good to know that in U.S. the legal system would still allow us to fight back against this type of action, as evidenced by Tanya Anderson, who has brought suit against the RIAA both as an individual and as a member of a class action. The suit is essentially one attorney’s counter punch to the RIAA for bring so many suits against “innocent” file sharers, much like Thomas and Howell. However, what is interesting about this case is the backlash that the RIAA may feel if it is revealed some of the methods they have used are not legal themselves.

Edit: go to http://www.billboard.biz/bbbiz/content_display/industry/e3ib309b0f22edc2e466cca533432b05ed7 to read about current event regarding P2P file sharing in Japan (3/18/08)

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