View Full Version : "The Internet Killed the Music Industry"
applebucked
10-01-2013, 07:41 AM
http://www.nme.com/nme-video/fleetwood-macs-stevie-nicks---the-internet-killed-the-music-industry/2707217615001
No, Stevie. I don't think it has killed the music industry. If forced it to evolve. But yes, I agree with her that it is indeed harder for new talent to break out.
http://www.nme.com/nme-video/fleetwood-macs-stevie-nicks---the-internet-killed-the-music-industry/2707217615001
No, Stevie. I don't think it has killed the music industry. If forced it to evolve.
Some people don't see much of a difference. The music industry as she has always known it is indeed gone, and something else is in its place, still figuring itself out. But she's not at a point in her life where she's going to readjust, take advantage, and start recording albums at a low cost in her basement and distributing them to fans directly on her website. All she sees is what she had that her successors are struggling for. Yes, just saying it's all down to internet piracy is extremely reductionist, but eh. I'll let her have her opinions. It's becoming a tired old song from her, but I guess that's what I get for listening to every interview I can find, eh? ;)
louielouie2000
10-01-2013, 08:10 AM
But yes, I agree with her that it is indeed harder for new talent to break out.
I don't know if I agree with this assertion. Look at people like Macklemore & Bieber... they are stars solely because of Youtube. Traditional, big record companies have lost their stronghold on the business, yes. Generally, the latest sounds & up and comers are hailing from smaller/Indie labels, if they have a label at all. The internet makes it possible for anyone to record an album, and put it out to the masses. This has made modern music far more varied, far less safe & formulaic. If anything, we're witnessing the democratization of music, folks. :nod:
applebucked
10-01-2013, 08:12 AM
What I mean with that is people have to try harder to stand out now than ever before. Though I also love how these up and comers now have more easier, cheaper means to bring their music out to their audience.
Part of the consequence of people's unprecedented ease of access to music from every era all over the world is that there isn't going to be any single band or artist that everyone is listening to, as there was in the 70s. I think a huge chunk of the reason that few artists reach FM's level of superstardom is simply the sheer vastness of customer choice available now, and I wish that was acknowledged a bit more.
applebucked
10-01-2013, 08:27 AM
Imagine if the Mac went indie and sold their music through the Internet (but I don't think that will happen). They're gonna need to beef up their online presence though.
CADreaming
10-01-2013, 08:28 AM
I don't know if I agree with this assertion. Look at people like Macklemore & Bieber... they are stars solely because of Youtube. Traditional, big record companies have lost their stronghold on the business, yes. Generally, the latest sounds & up and comers are hailing from smaller/Indie labels, if they have a label at all. The internet makes it possible for anyone to record an album, and put it out to the masses. This has made modern music far more varied, far less safe & formulaic. If anything, we're witnessing the democratization of music, folks. :nod:
But you can't make money. Or good money.
It's sort of like having cable channels. More to choose from, hard to find good quality.
But you can't make money. Or good money.
It's sort of like having cable channels. More to choose from, hard to find good quality.
i don't know. there seem to be probably as many people making huge money as during mac's heyday. and selling millions of albums.
some of them are crap, some are good. same as during mac's heyday.
louielouie2000
10-01-2013, 09:05 AM
But you can't make money. Or good money.
Money is made in touring, always has been. The big record companies have always screwed their artists by paying them pennies per album sold. To make any money selling an album, you had to basically sell tens of millions of albums, something very few artists have pulled off.
It's sort of like having cable channels. More to choose from, hard to find good quality.
I wholeheartedly disagree. I was born in 1982- never in my life have I found such a proliferation of amazing NEW music being released. Perhaps it's because of tools like Pandora Radio- if you like a song or artist, plug it into the app, and it'll unearth tons of songs/artists which are similar. Yeah, there will always be stuff you have to filter out... but hasn't that always been the case?
louielouie2000
10-01-2013, 09:08 AM
i don't know. there seem to be probably as many people making huge money as during mac's heyday. and selling millions of albums.
some of them are crap, some are good. same as during mac's heyday.
This. Everyone seems to have rose colored glasses regarding popular music in the 1960s & 1970s. Does anyone remember what the #1 song of 1977 was?
You Light Up My Life by Debbie Boone.
I rest my case. :lol:
WildHearted
10-01-2013, 09:48 AM
Does anyone remember what the #1 song of 1977 was?
You Light Up My Life by Debbie Boone.
I rest my case. :lol:
That's a fantastic song. :shrug:
CADreaming
10-01-2013, 09:49 AM
This. Everyone seems to have rose colored glasses regarding popular music in the 1960s & 1970s. Does anyone remember what the #1 song of 1977 was?
You Light Up My Life by Debbie Boone.
I rest my case. :lol:
LOL. I like that song... :angel:
CADreaming
10-01-2013, 09:53 AM
Money is made in touring, always has been. The big record companies have always screwed their artists by paying them pennies per album sold. To make any money selling an album, you had to basically sell tens of millions of albums, something very few artists have pulled off.
Then why are record companies going under and can't afford A&R departments? Why can't television shows not afford production any more? Where is the money that used to be there? There was a time when the artists didn't have to tour as much and were making more money selling albums (using Shania Twain as an example here). Songwriters used to make more money off royalties. Something changed, because it's not the same game and it has to do with the internet. This is what I believe Stevie is referring to when she disses on the internet. The label dropped FM and they can't get the big advances they used to get to make their albums...
I'm not saying there aren't advantages, but I do think the industry as a whole took a hit.
Money is made in touring, always has been.
Yeah, this isn't entirely true. There is money in touring if you're already a massive name that can command the ticket prices. But independent artists I've talked to always say that they tour at a financial loss, simply to promote themselves and sale of their album. And that promotion doesn't go as far anymore because people don't buy albums as often when there are streaming alternatives. Spotify royalties simply don't give small or starting-out artists nearly the same money that album sales do, and it can be difficult for these artists to make ends meet these days.
Imogen Heap made some interesting comments a while back: http://www.bbc.co.uk/news/10220002
I think CADreaming's statement that speaking very generally, the music scene has taken a hit in some ways, is fair enough. I still think Stevie grossly oversimplifies it though.
Macfanforever
10-01-2013, 10:09 AM
They've killing themselves for the last 25 years of producing rubbish which is not worth the penny to buy their recordings.
Stop coming up with throwaway manufactured artists like they have today and from the last 20 or so years. Maybe I will consider buying music again.
As I see it the music industry died in the 1990's way before the internet was popular.
The evolution of rap music did not help it but made it worst.
They did it to themselves without coming up with the idea like iTunes ,Amazon and Pandora Radio way before Napster,Limewire, WinMX and what ever else of PtoP sharing came about in the late 1990's to the early 2000's.
The overpriced $16 bucks for a CD did not help them and made fans to freeload their music illegally from those p to p sites .
The last CD that I purchase other then Stevie Nicks or Fleetwood Mac was a Faith Hill CD for my late sister for Christmas in 2006.
The last CD for myself was Stevie's IYD in 2011.
Plus another thing which turns me off digital only downloads like FM's EP with inferior compressed sound quality.If they have posted Wave or Flac formats I would be happy with that.
Yes they some good artists in the last 25 years but not many as they were in the 1950's to the 1980's.
I do understand Stevie's side of this matter of internet freeloaders since it does rip her and others off .
Also the record industry has to stop ripping off the artists and give them what they deserve for their work.
Stevie should teach these younger artists to sing and write quality music instead of crap they are putting out today.
Macfanforever
10-01-2013, 10:14 AM
Then why are record companies going under and can't afford A&R departments? Why can't television shows not afford production any more? Where is the money that used to be there? There was a time when the artists didn't have to tour as much and were making more money selling albums (using Shania Twain as an example here). Songwriters used to make more money off royalties. Something changed, because it's not the same game and it has to do with the internet. This is what I believe Stevie is referring to when she disses on the internet. The label dropped FM and they can't get the big advances they used to get to make their albums...
I'm not saying there aren't advantages, but I do think the industry as a whole took a hit.
Yes .I see that .Thats why TV is loaded with cheap reality shows.
I'm glad to see Robin Williams and Michael J Fox back on TV.
I hope its a trend that will wipe out those reality shows.
Yes I do remember Stevie mentioning about the lack A&R dept at the record companies.
She had to do the leg work to promote IYD. If the label did promote it It probably would of done better.
vivfox
10-01-2013, 10:29 AM
The overpriced $16 bucks for a CD did not help them and made fans to freeload their music illegally from those p to p sites .
CD prices were getting outrageous. If the internet never existed, CD's today might have been $25.00 a pop.
Macfanforever
10-01-2013, 10:57 AM
CD prices were getting outrageous. If the internet never existed, CD's today might have been $25.00 a pop.
Yes I agree and people will be recording off the radio if there was no internet to save a buck.
KarmaContestant
10-01-2013, 12:07 PM
Record labels aren't going under, but they *were* doing a great job of killing themselves. I say *were* because I think there have actually been some good changes recently that have been embraced by the industry, such as the resurgance of vinyl, which is solely due to consumer demand. When the labels give consumers what we want, we will buy it.
However - I agree that the internet played a role, albeit very minor, by providing ways for people to obtain music without paying for it, in a format that is undistinguishable from legitimate purchases. In the old days, a friend might give you a cassette copy of a new album, but it had no art and sounded inferior. These days a ripped CD is identical - or even better - than what iTunes and Amazon are selling.
There are a few reasons I see for the *decline* of the industry over the previous 20 years, all of which are reversable.
*Corporate radio. Probably the single biggest nail in the coffin. Radio todays plays a handful of songs, pre-programmed on a computer. DJs have litle to no say, and certainly don't choose what they play like they used to. Radio can make a career. Artists that have sold a lot of albums recently are artists that have received a lot of airtime (Maroon 5, Adele, Gaga, Katy Perry, Beyonce).
*Lack of product. As 45's, LPs and CD singles disappeared from the market, so did the collectibility of many artists' catalogs, and thus, so did the reasons to go to record stores.
*The death of independent record stores, which carry wide selections. People can't buy what they can't find. Independent record stores are the single biggest promoters of music after radio.
*The consolidation of competition. Did you know there are only three 'major' record labels anymore? They keep buying each other to eliminate competition. Sony, Warner and Universal are all that is left after the recent acquisition of Parlophone by Warner Music Group. Almost every other label out there is owned by one of these big three. Even the so-called Independents need the big three for distribution of product.
Even still, there are over 75,000 albums released each year in the United States alone. This is not a dying industry - it is a grossly mismanaged industry that tried to turn art into a commodity with disasterous results.
Macfanforever
10-01-2013, 01:53 PM
Record labels aren't going under, but they *were* doing a great job of killing themselves. I say *were* because I think there have actually been some good changes recently that have been embraced by the industry, such as the resurgance of vinyl, which is solely due to consumer demand. When the labels give consumers what we want, we will buy it.
However - I agree that the internet played a role, albeit very minor, by providing ways for people to obtain music without paying for it, in a format that is undistinguishable from legitimate purchases. In the old days, a friend might give you a cassette copy of a new album, but it had no art and sounded inferior. These days a ripped CD is identical - or even better - than what iTunes and Amazon are selling.
There are a few reasons I see for the *decline* of the industry over the previous 20 years, all of which are reversable.
*Corporate radio. Probably the single biggest nail in the coffin. Radio todays plays a handful of songs, pre-programmed on a computer. DJs have litle to no say, and certainly don't choose what they play like they used to. Radio can make a career. Artists that have sold a lot of albums recently are artists that have received a lot of airtime (Maroon 5, Adele, Gaga, Katy Perry, Beyonce).
*Lack of product. As 45's, LPs and CD singles disappeared from the market, so did the collectibility of many artists' catalogs, and thus, so did the reasons to go to record stores.
*The death of independent record stores, which carry wide selections. People can't buy what they can't find. Independent record stores are the single biggest promoters of music after radio.
*The consolidation of competition. Did you know there are only three 'major' record labels anymore? They keep buying each other to eliminate competition. Sony, Warner and Universal are all that is left after the recent acquisition of Parlophone by Warner Music Group. Almost every other label out there is owned by one of these big three. Even the so-called Independents need the big three for distribution of product.
Even still, there are over 75,000 albums released each year in the United States alone. This is not a dying industry - it is a grossly mismanaged industry that tried to turn art into a commodity with disasterous results.
Yes you hit the nail on the top about corp radio.It ruined radio.
OutsideTheRain
10-01-2013, 04:38 PM
I love to pop on here once in a while. As a musician myself that is not only a fan of Stevie's but someone who has been fortunate to talk with her at length about what it's like for younger upcoming artists- she is right on the money. It's virtually impossible for us songwriters to make enough money to survive. So i end up promoting my music here and elsewhere hoping to drum up a few itunes sales to make ends meet. Not trying to be a sob story, its just the way it is. So now enter my shameless plug lol:
stream my new single
johnbrandoli.bandcamp.com
or check out my last music video (featuring some very special guests) ;)
http://www.youtube.com/watch?v=TFAfgNPN0GQ
Love to you all !!
vivfox
10-01-2013, 04:39 PM
Yes you hit the nail on the top about corp radio.It ruined radio.
After ignoring radio for many years I started tuning in again in 2010 and have discovered many new awesome songs I never would have known about otherwise. Even when I was a boy growing up in the 60's and 70's, the basic radio formats played the required same 10 songs every hour on the hour.
jcfree
10-01-2013, 05:02 PM
OutsideTheRain, great song love the harmonies and the whole production, very well done!
Macfanforever
10-01-2013, 06:11 PM
After ignoring radio for many years I started tuning in again in 2010 and have discovered many new awesome songs I never would have known about otherwise. Even when I was a boy growing up in the 60's and 70's, the basic radio formats played the required same 10 songs every hour on the hour.
Maybe that what I got to do and I agree on the same top 10 songs every hour and mentioned earlier Debbie Boone's "You Light up my Life" was one of those tunes.
Maybe thats why my late sister picked "You Light up my Life" for her wedding song when she got married in 1978.
I love to pop on here once in a while. As a musician myself that is not only a fan of Stevie's but someone who has been fortunate to talk with her at length about what it's like for younger upcoming artists- she is right on the money. It's virtually impossible for us songwriters to make enough money to survive. So i end up promoting my music here and elsewhere hoping to drum up a few itunes sales to make ends meet. Not trying to be a sob story, its just the way it is. So now enter my shameless plug lol:
stream my new single
johnbrandoli.bandcamp.com
or check out my last music video (featuring some very special guests) ;)
http://www.youtube.com/watch?v=TFAfgNPN0GQ
Love to you all !!
Great video Outsidetherain.Great sound and story.
Yes I agree about artist only making pennies on their work and thats why Stevie and her counterparts in the biz got to work their rears off on the road in order to pay the bills.
Stevie worked her a$$ off to support IYD with her self promotions with her documentary and CD.She is a great sales lady too.
I was shocked when I read the news about Linda Ronstadt when she ran into hard times on top of her illness. She was the highest-paid woman in rock at one time according to her Wikipedia page. She did mostly covers of other artists or writers songs and Linda was the best doing them.
vivfox
10-01-2013, 06:12 PM
OutsideTheRain, great song love the harmonies and the whole production, very well done!
This must be the song that single handidly sunk the music biz.:lol:
OutsideTheRain
10-01-2013, 06:21 PM
This must be the song that single handidly sunk the music biz.:lol:
Haha! I take full responsibility!
Thanks guys for all the kind words. I'm on Facebook and all that too, if you want to say hi :)
KarmaContestant
10-02-2013, 10:51 AM
After ignoring radio for many years I started tuning in again in 2010 and have discovered many new awesome songs I never would have known about otherwise. Even when I was a boy growing up in the 60's and 70's, the basic radio formats played the required same 10 songs every hour on the hour.
Now see, this was not my experience when I was a teen in the late 80's. I listened to WKHQ in northern Michigan, and I'd be lucky to hear the same song twice on the same day. It was so rare - and if you requested something they already played that day they'd tell you they couldn't play it again because they already played it. That's how I remember radio - full of literally hundreds of tunes from hundreds of artists.You could listen all day and never hear a repeat. Even the most popular songs of the day were not repeated - there were too many other songs to play. I would hear Madonna, Aerosmith, Pebbles, Gloria Estefan, Pat Benatar, Swing Out Sister, Anita Baker and Love And Rockets all on the same radio station which is something that would never, ever happen today because those artists are in different genres. These days, the variety is gone and people who should be all over the radio are total unknowns in the music world outside of their small, alternative fan bases. That's my experience.
MikeInNV
10-02-2013, 12:14 PM
Now see, this was not my experience when I was a teen in the late 80's. I listened to WKHQ in northern Michigan, and I'd be lucky to hear the same song twice on the same day. It was so rare - and if you requested something they already played that day they'd tell you they couldn't play it again because they already played it. That's how I remember radio - full of literally hundreds of tunes from hundreds of artists.You could listen all day and never hear a repeat. Even the most popular songs of the day were not repeated - there were too many other songs to play. I would hear Madonna, Aerosmith, Pebbles, Gloria Estefan, Pat Benatar, Swing Out Sister, Anita Baker and Love And Rockets all on the same radio station which is something that would never, ever happen today because those artists are in different genres. These days, the variety is gone and people who should be all over the radio are total unknowns in the music world outside of their small, alternative fan bases. That's my experience.
On weekends one of my local radio stations re-broadcasts American Top 40 with Casey Kasem, the eighties one day and the seventies the next. The diversity you find in those charts is amazing; every kind of music is represented. Now it seems "Top 40" is its own genre, and only a very narrow range of music fits into it.
Macfanforever
10-02-2013, 12:21 PM
On weekends one of my local radio stations re-broadcasts American Top 40 with Casey Kasem, the eighties one day and the seventies the next. The diversity you find in those charts is amazing; every kind of music is represented. Now it seems "Top 40" is its own genre, and only a very narrow range of music fits into it.
Yes .I love Casey Kasem and his version of the top 40.I listen too it every weekend online.
Check this AT40 forum out which I'm a member of..They have everything about AT40's from Casey Kasem to Ryan Seacrest plus days and times when the show airs on the radio.
http://at40fg.proboards.com/
MikeInNV
10-02-2013, 12:35 PM
Check this AT40 forum out which I'm a member of..They have everything about AT40's from Casey Kasem to Ryan Seacrest plus days and times when the show airs on the radio.
http://at40fg.proboards.com/
That looks like fun.....thanks!
Macfanforever
10-02-2013, 01:37 PM
That looks like fun.....thanks!
No problem.I love listening to those old shows especially when Stevie/Lindsey and FM is on the shows.
Just past weekend the station played Casey's 1981 show which had Stevie and Tom Petty's Stop draggin my heart around at number 3 on the show.
Iktomi
10-02-2013, 02:32 PM
As I see it the music industry died in the 1990's way before the internet was popular.
The evolution of rap music did not help it but made it worst.
Rap music made what worse - the music industry? How so?
becca
10-02-2013, 02:47 PM
Interesting reading.
I think a lot of big labels got very bloated with non-creative middlemen types who mainly liked to pretend they were creative geniuses somehow... and sometimes they let the actual promo and salesmen who did real work interfacing with the world down. Sadly they started eating each other and with the lesser variety the creative part stagnated into copying proven things. There have been some great successes among small labels and reissue labels that were lean and less extravagant (into the hype and 'lifestyle'). At least the ones that didn't exist or want to succeed mainly just to be good enough to get bought up by the giants.
I think the new reality is going to be downloads (or varying quality) mainly with hard copies in CD or vinyl being the upscale boutique option.
michelej1
10-29-2013, 05:15 PM
NME On Film - 10 October Video Highlights
Read more at http://www.nme.com/blogs/nme-blogs/nme-on-film-10-october-video-highlights#0TShQ71kV6FUcdxl.99
Percy Pigs, Breaking Bad, radical feminism... don't say we don't give you variety on NME Video. This month highlights included Alex Turner's masterful impression of Mike Ehrmantraut from Breaking Bad and a prediction about how the TV drama would end (the Arctic Monkeys frontman and Matt Helders also revealed their choice for the Greatest Album Of All Time), Alana from Haim rated all the different types of Percy Pigs and E from Eels told us the story behind 'Peach Blossom'. Don't miss the stunning Wolf Alice cover of Katy Perry's 'Roar' and Stevie Nicks theorising on the death of the music industry. We've also got exclusive interviews with Albert Hammond Jr, Tinie Tempah and Stevie Nicks as well as a film where we look at what young artists really think about Spotify. Watch our top 10 in a handy playlist below.
Read more at http://www.nme.com/blogs/nme-blogs/nme-on-film-10-october-video-highlights#0TShQ71kV6FUcdxl.99
SisterNightroad
09-16-2017, 05:40 AM
Spotify Faces Stepped-Up Legal Pressure from Stevie Nicks, Neil Young, Steve Perry, The Doors, Stevie Ray Vaughan…
Spotify is now facing legal pressure from some of the biggest musicians and songwriters in the world.
Earlier this week, Spotify was served with multiple lawsuits demanding hundreds of millions in unpaid royalties. But the list of prominent musicians and songwriters is far deeper than we imagined.
According to filings shared with Digital Music News, Spotify is now facing demands from high-profile stars like Stevie Nicks, Neil Young, Donald Fagen (of Steely Dan), Michael McDonald, and even members of Journey. All of those artists are part of a collective pushback by Wixen Music Publishing, and listed in a 1,400 page ‘Exhibit A’ reviewed by Digital Music News this morning.
Others in the Exhibit include members of the Eagles, Cheap Trick, Jimmie Vaughan, and the estate of Stevie Ray Vaughan.
Even the Doors were listed in the Exhibit, specifically through the ‘Doors Music Company LLC’.
Dig a little deeper, and none other than Bruce Willis was also on the list. And he’s not the only actor: Anthony Hopkins has also been sidelining as a classical songwriter, apparently.
Earlier, we reported participation from Tom Petty, Rage Against the Machine, The Black Keys, Kenny Rogers, and the heirs of Sonny Bono. Well, those names are in this Exhibit too. But guess we were just scratching the surface in our first article.
Wixen, a publishing giant, has recently moved to reject a proposed $43 million settlement agreement with Spotify.
That settlement would absolve Spotify for failing to pay for ‘mechanical’ reproductive licenses, though it now appears unlikely to stand.
Separately, Spotify’s legal tussle with 9 different publishers also continued this week.
As part of its mounting mess surrounding the mechanical, Spotify’s counter-offensive is growing ugly. Just last month, the company’s lawyers engineered a complete reversal on the matter by arguing that the license did not apply to streaming services. That could stand in court, though it runs completely contrary to earlier declarations by the company.
We’ll have the complete Exhibit A, complete with 500+ names, ahead.
https://www.digitalmusicnews.com/2017/09/15/spotify-legal-pressure-nicks-neil-young-doors/
SisterNightroad
01-03-2018, 07:39 AM
Spotify slapped with $1.6 billion copyright lawsuit over Tom Petty, Stevie Nicks songs
Spotify has been hit with a massive copyright infringement lawsuit from Wixen Music Publishing, which represents songwriters such as Neil Young, Stevie Nicks, Tom Petty, Zach De La Rocha, and Rivers Cuomo and alleges that the streaming service is using tens of thousands of Wixen’s artists’ songs without proper license and compensation.
As first reported by the Hollywood Reporter, Wixen is seeking at least $1.6 billion in damages.
Wixen’s complaint, filed Dec. 29 in California federal court, contends, “Prior to launch, Spotify struck deals with major record labels to obtain the necessary rights to the sound recording copyrights in the songs by offering the major labels, in many cases, equity stakes in Spotify: But Spotify failed to properly obtain the equivalent rights for the compositions. As a result, Spotify has built a billion dollar business on the backs of songwriters and publishers whose music Spotify is using, in many cases without obtaining and paying for the necessary licenses.”
A Spotify spokesperson declined to comment on the lawsuit.
Wixen’s lawsuit comes six months after Spotify reached a proposed $43.4 million settlement to resolve a class-action lawsuit with songwriters and publishers led by David Lowery and Melissa Ferrick. The Swedish-based streaming service was also hit with two more copyright lawsuits in July.
In a statement Tuesday, Wixen said the company and its clients decided not to participate in the Ferrick v. Spotify lawsuit “in part because of their belief that the proposed settlement is inadequate, because too much of the settlement is going to legal fees, and because the terms of the go-forward license in the settlement are not in their long-term best interests.”
Randall Wixen, the company’s president, added, “We’re just asking to be treated fairly. We are not looking for a ridiculous punitive payment. … All we’re asking for is for them to reasonably compensate our clients by sharing a miniscule amount of the revenue they take in with the creators of the product they sell.”
http://ew.com/music/2018/01/02/spotify-wixen-copyright-lawsuit/
Read Wixen’s lawsuit above.
petep9000
01-03-2018, 01:09 PM
In the good old days they'd get platinum awards for whatever was shipped to the record stored, regardless if the records sat in a box or not.
SisterNightroad
03-01-2018, 10:06 AM
Spotify IPO filing reveals how insanely complicated it is to license music rights
Spotify said it paid $9.76 billion in royalties to artists, music labels and publishers since it launched in 2006.
Spotify gets two licenses for for music: public performance rights and mechanical rights.
It needs to make sure the song performer and recording owner are paid, as well as the songwriter and publisher.
Spotify wants to sell stock to investors — but first it will need to convince them it's worth buying in to the complex process of selling music.
The company, which filed its plans to go public on Wednesday, said it has paid more than $9.7 billion in royalties to artists, music labels and publishers since it launched in 2006. It had 71 million paying subscribers and 159 million monthly active listeners as of December, making it the largest streaming music service across the world by far.
In general, Spotify gets two classes of licenses for the music it distributes: Sound Recording License agreements, which cover the rights to a particular recording, and Musical Composition License Agreements, which cover the people who own the rights to the song.
Recording licenses. For the rights to the actual recordings, Spotify has deals with the big three record labels -- Universal Music Group, Sony Music Entertainment Group and Warner Music Group. Sony Music also owns more than 5 percent of the company.
Spotify also has a deal with Music and Entertainment Rights Licensing Independent Network (Merlin) for digital recordings from independent labels. However, it has recently run into some problems with music publishing companies, including a $1.6 billion lawsuit from Wixen Music Publishing that claimed it was using thousands of its songs illegally. Wixen's songs include "Free Fallin'" by Tom Petty, "Light My Fire" by the Doors, and selected tracks by Stevie Nicks.
Composition licenses. Within this category, there are two main types of licenses Spotify has to secure: performance rights and mechanical royalties.
Performance rights are generally paid to song publishers, and managed through two main firms in the U.S. -- BMI and ASCAP. A public performance license is needed when a song is performed in public -- including when it's streamed, as well as when it's played on the radio or on TV.
Mechanical royalties are generally paid to songwriters when a song is reproduced, whether that's physically on a CD or streamed. (The term is a holdover from when most music was physically pressed into a recording, like a CD or LP record.)
Mechanical rights for streaming services are governed in the U.S. by a government agency known as the Copyright Royalty Board. The organization ruled in January to increase rates by 43.8 percent over the next five years. The rates are based on a percentage of the streaming company's revenue or total content costs, agreed upon payment amounts by all parties.
There are other types of licenses and sub-licenses as well, and the groups responsible for collecting and distributing them differ between countries and regions of the world.
If this sounds confusing, that's because it is.
Take, for example, the song "I Will Always Love You" from the 1992 soundtrack for "The Bodyguard." That version of the song was performed by Whitney Houston, the recording of which is owned Sony Music Entertainment division Arista Records. However the song was written by Dolly Parton, who owns the composition, including the lyrics and melody.
Spotify would have to pay Sony to license the recording, who would then give Houston's estate a percentage of the stream. It would also have to pay the music publisher and songwriter. In this case, Parton is both.
https://www.cnbc.com/2018/02/28/how-spotify-licenses-and-pays-for-music-rights.html
Newzchspy
03-02-2018, 06:19 PM
So Stevie, and many others, were correct back in 2013 when she stated that the Internet was killing the music business. I've stated time and again, this isn't about art. Was at one time, BUT never will be again. NOW , its all about the business of music and $$$.
Stevie , through her publishing company, owns many of her songs, so she knows (and feels firsthand) in her pocketbook, the effects of the Internet on her published songs. Landslide immediately comes to mind.
Spotify is arguing that this is NOT a mechanical repro of music, BUT a digital one (streaming) and that therefore , the old rules do not apply. I think that argument will not fly with a court since although the method of repro changed, the music did not. This is really no different, in a way though, than you or I owning a cassette recorder attached to turntable like they used to make and you could turn an album into a cassette in about an hour. The Internet and streaming just make it that musch easier.
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