Paying the Artist

“The chart linked to the left gives you a rather dramatic picture of the state of the art in terms of artist’s earnings from recorded music. As you can see, the picture is rather dismal. It appears that an artist’s best chance of making any kind of living at all from his own recorded songs is to sell the CD directly to the public, at gigs or online.

Music Industry – the Chart!

You can’t ignore an omission (forgivable– that’s not what the page is about): the chart doesn’t account for the role of publicity and promotion in CD sales. But it does make it clear that the trade-off, for the artist, is absurd. In exchange for access to the “star-making-machinery” of Sony or BMG, you sell a gazillion units, and then get to turn over pretty well all of your earnings to the record company. No– you don’t even “turn over” the profits– you will never even see them, for the music industry skims off almost everything– and I mean that literally– almost everything– before turning over a pittance to the artist. But then, you get to be on TV. You get promoted. You get fame. You get the girls. You get broke.

I have said this before and I’ll say it again: I believe the government should step in and set standards for contracts between musicians and record companies which guarantee that the artist receives a “reasonable” portion of royalties for every unit sold. It also needs to regulate how much the recording industry can deduct from an artists royalties for the cost of “promotion”. To me, those charges have always seemed like General Motors deducting money from the wages of assembly line workers to cover “advertising”. Why the hell should the assembly line workers pay for the cost of doing business? Especially when you find that a lot of these expenses are fees paid to shadow entities that are actually owned by the record company itself– like “image consultants”, market researchers, arrangers, and so on.

The most compelling paradox of the music industry remains this: would any artist be happy to know that his music is not being pirated? Yes, nobody’s stealing your music. You are so lucky.

So what’s a young recording artist/singer/songwriter to do? Would they really want to go back to the pre-internet lottery system: if you get chosen (by a record company) and you’re lucky and you get a contract, you get rich? And everyone else has absolutely no way to reach a potential audience.

I suspect that the current reality is what is going to work as well as anything can work in this world. New artists practice and play when they can, record their own CD’s cheaply with newly accessible technology, and sell them online and at their performances.

The music industry has never, probably, been so democratic: anybody can reach a large potential audience via the internet, post a video on Youtube, post their music at iTunes, and keep their fan base informed via Facebook.

But without the machinery of the music industry establishment, their prospects are dismal.

Get Your Own #%%!@## Format!

Here it is– another great solution to the movie and music piracy problem!

It’s so mind-numbingly simple, why didn’t George W. Bush think of it?

The music industry and film industry should get together and create new recording medium. It wouldn’t be very hard at all– the technology is there. There are dozens of modifications they can make to existing technologies in order to create a new medium that belongs only to them. A special type of DVD with special coding at the start that prevents it from being played in any existing DVD player. You heard me right– but hang on. I’m not crazy. They can call it the “Super Media Content Diskie” or “SMCD”.

The music and film industries will own this standard and will not license it to anybody but themselves. They will contract out with factories to produce a new SMCD Player. The codes required for playing a SMCD will be hard- coded into a special chip, and thus almost impossible to copy or hack.

Then the music and film industries will start releasing all of their “content” only on these special disks. You won’t be able to buy a SMCD version of “Titanic” or “A Few Good Men” or a CD version of Bruce Springsteen or Britney Spears. You will only be able to buy it on SMCD, for which you will have to buy or lease the SMCD player.

And thus piracy will end. No digital copying will be possible. No digital quality copies of songs or movies on the internet, though, of course, some people might be able to make passable copies by recording, with microphones or video cameras, right off the SMCD player screen. (The music and film industries have made it plain that while they’ve always been concerned about copying in general, from any source, it is really the digital copying that gets their goats.)

Problem solved.

It will never happen.

It will never happen because the music and film industries know damn well that they don’t really want a world in which they have absolute ownership and control over their product because in a world like that they won’t make any money.

The reason is very simple and obvious. The consumer would never accept such a system. And some smart musicians and independent movie makers would immediately realize this and start to offer their products on popular media like DVDs and CD’s. And the music and film industries would lose their power and control over the entertainment market and quickly capitulate and that would be end of that.

No, wait— there’s a better solution! The music and film industries can try to seize control of the existing technologies– VCRs, computers, CD recorders– and try to shove their copy-protection schemes down our throats.

And that is what is happening. No one is required to issue movies or music on DVDs or CDs. They do it because they know damned well that the public adopted those media because they were widely accepted standards. They were widely accepted standards because they were broadly licensed to many manufacturers and PC makers. They were broadly licensed because they were sold to us as media, not content. The music and film industries benefit enormously from those widely accepted standards. And that is why, if they don’t like the consequences of a broad, open standard, they should get the hell off it and start producing their own proprietary media that nobody can copy. If they don’t like the SMCD idea, they can go back to vinyl. If they don’t like the internet, they go back to AM radio.

It would be the best thing that could ever happen to the entertainment industry. You would get loads of Third World bands and movie-makers who would be more than happy to give up some protections of their materials in exchange for wide distribution and exposure. They would issue their stuff on popular media formats and would soon blow Hollywood out of the mass market. You would see Demi Moore and Bruce Willis traveling to Bombay to make a new action flick, in English.

This is why Apple is tiny compared to Microsoft. This is why Betamax never caught on. This is why the Laser Disk never made it. This is why Advantix film by Kodak will never succeed. This is why rock’n’roll succeeded beyond anyone’s wildest expectations (the AM battery-powered radio).

The truth is that music and film industries don’t really compete with each other anymore, and don’t want to have to compete with anyone else. They price their products in lock-step with each other, and hate having to actually produce and develop new talent while they can still pimp off their old established stars.

And when their control starts to diminish, because of computers and the internet, instead of becoming leaner or meaner or more competitive– which requires work and talent– they start stuffing your congressman’s pockets full of cash and get the DMCA passed. Now they want congress to require all electronic recording devices to give control over what and when something can be copied to these pimps at the RIAA and MPAA (Recording Industry Association of America and Motion Pictures Association of America).

This is an outrage. It’s one of the five or six biggest scandals of the last twenty years. The Music Industry has every right to negotiate contracts with radio stations and hardware makers about how and when they can put their content on their media. Why the hell should the government step in and make laws to govern– and penalize offenders– an arrangement that should absolutely be a contractual agreement between the record companies and radio stations?

Their control of the world-wide entertainment industry is threatened by any technology that gives more power and control and choice to the consumer. Most consumers wouldn’t give a damn about Britney Spears if it weren’t for the monopolistic control the music industry has over radio, print, and television, but most consumers don’t know that.

They would find out in a hurry if something prompted them to start looking elsewhere.


Yes, I know it’s a symbiotic relationship. New technologies are often created by content companies (or at least companies that have a content division, like Sony and Phillips) at least partly for the purpose of creating new markets for their products. Sort of what I described here as “SMCD”. But Phillips also licensed their technology to many companies to make recorders, players, and car decks. So it benefitted by the very open standard that most content providers now want to kill.

It doesn’t always work that way– few people buy a minidisc to listen to pre-recorded minidiscs– but Phillips certainly intended the cassette as a mass market music media. But the relationship is ambiguous. For example, the recording industry needs radio and television media exposure in order to sell their products. Yet they now want to charge Internet Radio broadcasters for playing their music! Here we have the RIAA acting like a bullying monopoly. Why, for heaven’s sake, won’t some competing independent producers come along and offer their goods for free play on the internet? They would, but the RIAA of America is doing everything it can to not let them. They want their policy wishes to be the law, instead of a contract between themselves and the radio stations, which is what it should be. Because if it was only a contractual arrangement, then competing music producers could offer a better deal!

The Music Industry is Stupid

Yeah, I know. Kind of blunt instrument, that title. Sometimes, though, you want to call a spade a spade.

The music industry, fresh from their legal victory over Napster (although, true to copyright tradition, they settled out of court rather than wait for an actual finding), have decided to offer their own alternative to peer-to-peer file-sharing programs..

Logically, you would think that they would put all of their music on one site and allow people to sign up, and pay, so they could download the music they wanted when they wanted. You would think that they would be sensitive to the persistent charges that they rip off artists by making sure that everyone knew that they were paying the artists a fair share of these fees. See? It’s not about us. It’s about making sure the artist gets paid…..

You would think that. Well, maybe you wouldn’t.

The Dixie Chicks and many other performers are hopping mad. Seems that, firstly, the music industry isn’t asking permission of the artists to put their music up on the web site. They are acting as if that permission is already included in all the other egregious rights that they have extorted out of their artists. We’ll see you in court. (They now specifically include these rights in new contracts young, naïve artists are forced to sign if want industry support. If they had to add this clause, they obviously didn’t really think it was implied in their existing contracts, did they?).

Secondly, it turns out that the artists will be getting a mere fraction of a cent for every download. A big fat nothing. The music industry claims that it is just SO EXPENSIVE to distribute music over the internet. By golly, it’s so expensive that about 20 million people have been doing it for free for five years.

The music industry is also, apparently, including charges for CD covers, promotional copies, and distribution in their calculations. Of course, with downloading, there are no physical CDs, or promotional copies, or art work, or anything.

This is going to kill Morpheus? Ha ha ha.

The line-ups:

Pressplay: Universal and Sony

MusicNet: BMG, EMI, and AOL Time Warner with Real Network.

I am not sure, at the moment, if these companies will even be giving each other access to each other’s catalogues. If they don’t, they might as well fold their tents up right now. People are not going to be lining up to pay $20 a month to two or three or more different on-line services just so they can hear the music they want to hear.

The music industry is stupid. We know that. It took them years and years to respond to Napster. It will take bankruptcies and court rulings to finish the job.