DIGITAL MUSIC NEWS

Federal Judge Rejects Sirius XM’s Call

For Summary Judgment In Pre-1972 Case

 

     The Turtles keep on rolling to copyright victory, as a federal judge in New York has ruled against Sirius XM in the ongoing battle to collect royalties on recordings made before 1972. Last Friday (Nov. 14) Judge Colleen McMahon of United States District Court in Manhattan rejected Sirius XM’s motion for summary judgment, saying the Turtles have performing rights to their recordings under New York State law. She gave Sirius XM until Dec. 5 to dispute the remaining facts in the case; otherwise Sirius XM will be ruled liable for infringement.

“General principles of common copyright law dictate that public performance rights in pre-1972 sound recordings do exist,” Judge McMahon wrote in her decision. The ruling comes after a separate win for the Turtles in September, when a federal judge in California found Sirius XM liable for infringement under state laws there. According to The New York Times, that decision was viewed as a major victory for artists and record companies, although its wider impact was unclear because it applied only to that state.

Judge McMahon’s decision strengthened the music industry’s position that pre-1972 recordings are covered under state laws. Still, recording and broadcast industry executives say the potential for widespread confusion over music licensing – for example, it may mean that thousands of AM-FM radio stations, as well as restaurants or sports arenas where music is performed, may have been infringing on recording rights for decades – likely will require clarification from Congress. 

YouTube Launches Music Key In

Already-Crowded Streaming Field

 

     After years of false starts and seemingly endless label negotiations, YouTube’s Music Key launched earlier this week to the ultimate question: will users actually pay $9.99 for something  they previously received free of charge? That’s the monthly rate Google set for its ad-free service that also offers offline functionality, with a company spokesperson telling Billboard, “The goal is more ways to play music on YouTube, giving artists more ways to reach fans and make money.”

So why create a subscription service, especially given the competitive landscape? As Billboard notes, Apple is certain to grow its share of the streaming market, Amazon is going after middle-of-the-road listeners with Music Prime, and Spotify has a head start of 12.5 million U.S. subscribers (28 million worldwide in 2013, according to IFPI).

Still, many industry executives hope Music Key will help YouTube clean up the metadata that often gets lost in uploads of master recordings and drives users to the original composer and purchase links. This has been a core asset of YouTube’s Content ID system, which has disbursed more than $1 billion in revenue to labels and content creators since 2007. 

YouTube Refuses To Remove Songs

By Artists Represented By Azoff’s GMR

 

     YouTube apparently has refused to remove songs composed by artists represented by Irving Azoff’s Global Music Rights (GMR), forcing a showdown between the 42 artists the music icon represents and the Google-owned video site. The dispute stems from YouTube’s claim that it has licensing deals in place with the record labels, while Azoff contends that in order to publicly perform those 42 artists’ songs, the company also has to pay the songwriters, which Azoff says are “massively underpaid” when it comes to digital services.

According to The Hollywood Reporter, the primary question here is whether YouTube has a right to perform these songs until proven otherwise. GMR thinks the burden of proving a valid license is on YouTube, which reportedly says it has a multiyear license for the public performance of works represented by GMR. The licensors aren’t identified, but it’s possible that YouTube believes its covered by prior deals made with ASCAP, BMI, SESAC, or a foreign performing rights organization.

Howard King, an attorney representing GMR, says YouTube has failed to comply with demands to stop performing those 20,000 songs. “Obviously, if YouTube contends it has properly licensed any of the songs for public broadcast, a contention we believe to be untrue, demand is hereby made that we be furnished with documentation of such licenses,” he says.

By contrast, a spokesperson for YouTube told THR, “We’ve done deals with labels, publishers, collection societies, and more to bring artists’ music into YouTube Music Key. To achieve our goal of enabling this service’s features on all the music on YouTube, we’ll keep working with both the music community and with the music fans invited to our beta phase.” 

Music Key Could Thwart Apple’s Move

To Reduce Monthly Subscription Fee

 

     It’s no secret that Apple has been engaged in heated discussions with the major record labels to lower the price of on-demand music to $5 per month from the standard $9.99 currently charged by such subscription services as Spotify, Rhapsody, Google, Rdio, and its own Beats Music. According to Forbes, Apple is telling record labels that $5/month for all-you-can-hear on-demand music is the right price because the best iTunes customers spend about $60 per year on music downloads. The obvious thinking here is that this $60 annual revenue per user (ARPU) could be the best record companies can hope to get from those consumers who still actually pay for music.

This may be a convenient talking point for Apple’s negotiators, but – as Forbes points out – two important factors strongly counter that argument. First, for all the talk about monthly subscription fees (and Taylor Swift, below), the vast majority of users of on-demand music services don’t pay for them at all. Second, in 2011 Google introduced

a technology called Content ID that enables copyright owners to make money, if they choose, when users upload content to YouTube. The system detects users’ uploads of copyrighted works and gives copyright owners several options, including to block the uploads or monetize them through ad revenue sharing. By 2011, the major labels had opted to allow many user uploads of their content for monetization, and they also supply their own “official” music videos.

As a result, YouTube is a de facto on-demand music service and, as noted by Forbes, possibly is the biggest one in the game. Market research from Edison Research and Triton Digital suggests that, strictly as a music service, YouTube has about four times the U.S. user base of Spotify, Rhapsody, and Google Play Music All Access combined. No one pays for YouTube, although some may pay for its Music Key service, which will hit that same $10 monthly price point when it comes out of beta. 

Big Machine’s Scott Borchetta: Spotify

Paid Less Than $500,000 To TS Last Year

 

     The verbal fisticuffs between Spotify and Taylor Swift have not let up, with the streaming music service’s Daniel Ek insisting the pop music icon was on track to earn over $6 million in royalties this year. This claim came after a Spotify spokesperson said Swift had been paid a total of $2 million over the last 12 months for the global streaming of her songs. But Scott Borchetta (above left), CEO of Swift’s label Big Machine Records, says that’s nowhere near the truth, maintaining Swift earned less than $500,000 from Spotify streams over the last 12 months.

“The facts show that the music industry was much better off before Spotify hit these shores,” Borchetta told The New York Times. Noting that the amount Spotify paid out over the last year was “the equivalent of less than 50,000 albums sold, he said Swift actually earns more from her videos on Vevo than she did from having her music on Spotify.

While half a million dollars will cause few people to weep, it should be noted that Swift’s most recent album, 1989, became the first this year to sell more than a million copies in a week – a feat only equaled by 18 albums in history. Unlike most performers, she can make millions of dollars from traditional album sales, but by keeping her music away from Spotify even as it begs for her to come back, she and Borchetta say they’re trying to make the larger point that the service doesn’t pay its artists a reasonable fee. “[Taylor Swift] is the most successful artist in music today,” Borchetta says. “What about the rest of the artists out there struggling to make a career?” 

Sony Music Wary Of Ad-Supported

Streaming After Taylor Swift Move

 

     Taylor Swift’s claim that subscription streaming services hurt music sales has caused Sony Music to reconsider its own digital music plans. PC World reports that, during a recent company briefing, Sony Music CFO Kevin Kelleher questioned whether or not the free, ad-supported services are taking away from how quickly, and to what extent, the company can grow those paid services. “That’s something we’re paying attention to… It’s an area that’s gotten everyone’s attention,” he observed.

This is important because, as CD sales and digital music downloads continue to shrink, streaming services offer a potential ray of sunshine for the recorded music industry. Such companies as Pandora and Spotify routinely lose money due to a combination of high royalty fees and low revenue, an imbalance that appears to be due to poor ROI on ad-supported tiers and not enough premium subscribers to sustain a business model.

While Sony says the move by Taylor Swift (not a Sony artist) to pull her music from Spotify made the company sit up and take notice, it isn’t enough to make anyone want to change the dynamics of the digital music business. In fact, Sony says it’s “very encouraged with the pay streaming model.” Approximately 27 million people worldwide pay for streaming subscriptions, Sony says, and the company is focused on helping that number grow.

 

A publication of Bunzel Media Resources © 2014

DIGITAL MUSIC NEWS

What The New GOP House, Senate

Will Mean For The Music Business

 

Capitol Building      The returns are in and the Republicans took decisive control of both the House of Representatives and the Senate last night (Nov. 4). While political pundits and armchair quarterbacks are dissecting what this means for the country, Billboard has taken a look at what this new Congress might mean for the recoded music business in the coming year. “Over the next two years, Congress could decide if pre-1972 recordings get a digital performance right, determine if record labels get a performance right at terrestrial radio, and review the Department of Justice’s rules for ASCAP and BMI,” writes the publication’s Glenn Peoples. “Additionally, there will be continued efforts toward a major copyright update.”

In his report, People points to three primary issues related to the new Congress:

  1. Who among the Republican party will lead the House Judiciary Subcommittee on intellectual property? With the retirement of Howard Coble (NC-6), the House subcommittee that oversess copyright and intellectual property issues is going to get a new chairman. Sources say House Judiciary chairman Bob Goodlatte (VA-6) could appoint Darrell Issa (CA-49), “a self-described techie who is ‘unpredictable’ and doesn’t fit into a simple narrative.”
  2. Who will become chairman of the Senate Judiciary Committee? Outgoing chairman Patrick Leahy of Vermont has supported many issues important to the entertainment industry, but it’s less clear where ranking Republican member Chuck Grassley of Iowa stands on the issues.
  3. How and when will Congress move forward? As Peoples notes, several events outside Congress could impact the manner and timing of legislation important to the music industry. Appeals court decisions will determine if digital music services must pay for the performances of pre-1972 recordings, the Copyright Royalty Board will set new internet radio royalty rates, the Department of Justice will conclude its review of ASCAP and BMI’s consent decrees, and the Copyright Office will issue a report that could help change music licensing for the streaming era.

Warner Music Group Signs Major

Licensing Deal With SoundCloud

 

     Warner Music Group this week became the first major record label to sign a licensing deal with SoundCloud, which is hoping to build up a catalog of major artists to attract listeners to both its existing free service and a subscription service it plans for next year. The deal calls for Warner’s music to be available through SoundCloud’s free ad-supported service and its planned paid streaming service, although the record label will not necessarily make its entire library of music available. As reported by Fortune, Warner reportedly will take a 3% to 5% stake in SoundCloud as part of the alliance.

The deal calls for Warner to receive a share of ad revenue when the label’s songs stream via SoundCloud, and also will be paid when its songs are re-cut and worked into remixed audio that users post to the service. Additionally, the label will receive a share of revenue from SoundCloud’s new subscription streaming platform, which is expected to launch in the first half of 2015.

“SoundCloud is a platform built on music innovation and it has a rare ability to drive music discovery while enhancing the connection and collaboration between an artist and their following,” Rob Wiesenthal, Warner Music’s chief operating officer, said in a statement. “Our deal will foster that relationship, while providing a powerful range of income opportunities for WMG’s artists and songwriters.”

SoundCloud’s free, ad-supported streaming service attracts 175 million unique listeners every month. 

Irving Azoff Launches Global Music

Rights To Compete With ASCAP, BMI

 

     Former Live Nation Chairman Irving Azoff (pictured left) this week announced the launch of a new music publishing venture designed to compete directly against ASCAP and BMI in the $2 billion performing rights market. The company, known as Global Music Rights, is part of Azoff MSG Entertainment, a joint venture established last year with the Madison Square Garden Company. The management of performing rights has been a steady part of the music business for a century, but disruptive technologies, new competitors, and a series of lawsuits over how songs are licensed have introduced critical change to the landscape.

As reported by The New York Times, ASCAP and BMI represent more than 95% of the songs available in the U.S. and are governed by decades-old regulatory agreements with the Justice Department that restrict how they negotiate with outlets that use music. Recently, some big music publishers have complained that these rules lead to low royalty rates, and havethreatened to leave those organizations if regulatory changes were not made.

Global Music Rights has lured a client roster including such diverse artists as Smokey Robinson, the Eagles, Bruno Mars, the estate of John Lennon, and Megadeth with the promise that it can generate royalties that are as much as 30% higher than they can get through ASCAP and BMI. “I vowed when I started this company that I was going to take care of artists,” Azoff said in an interview with the Times. “I tried to identify places where I felt that artists were not getting a fair deal, and the performance rights area jumped out at me. It was a place where I felt I could help our writers.”

The Madison Square Garden Company – which has committed $175 million in backing to Azoff MSG Entertainment – said it would consider splitting itself into two companies, one for its sports properties and the other for entertainment. 

Taylor Swift Pulls All But One

Of Her Songs From Spotify

 

     Country crossover superstar Taylor Swift has pulled all but one of her songs from Spotify in a move designed to reinforce her argument that streaming services tend to cheapen the value of music. This isn’t the first time there’s been a rift between Swift and the streaming music service; in 2012 she refused to allow her 2012 album titled Red on Spotify when it debuted, but later released it after sales began to wane. Her most recent release, 1989, has never appeared on the streaming platform, and the only song of hers that remains on it is “Safe & Sound,” from The Hunger Games soundtrack.

Swift has been highly vocal about music sharing and streaming, and shared her thoughts on the subject in an op-ed piece published in the Wall Street Journal last summer. “Piracy, file sharing, and streaming have shrunk the numbers of paid album sales drastically, and every artist has handled this blow differently,” she wrote. “Music should not be free, and my prediction is that individual artists and their labels will someday decide what an album’s price point is. I hope they don’t underestimate themselves or undervalue their art.

The decision to keep 1989 off Spotify was quite a blow to the company, which has created a playlist in her honor called “What to Play While Taylor’s Away.” And a blog post on the Spotify’s website says, “We love Taylor Swift, and our more than 40 million users love her even more. Nearly 16 million of them have played her songs in the last 30 days, and she’s on over 19 million playlists. We hope she’ll change her mind and join us in building a new music economy that works for everyone. We believe fans should be able to listen to music wherever and whenever they want, and that artists have an absolute right to be paid for their work and protected from piracy. That’s why we pay nearly 70% of our revenue back to the music community. PS: Taylor, we were both young when we first saw you, but now there’s more than 40 million of us who want you to stay, stay, stay. It’s a love story, baby. Just say ‘Yes.'”

Prediction: Taylor’s music will return to Spotify when sales of 1989 begin to slow.

 

Taylor Swift’s 1989 Is 2014’s First

Million-Selling Album…In One Week

 

     Just like predicting the sun will come up tomorrow, Taylor Swift’s 1989 has become 2014’s first million-selling album. According to Nielsen SoundScan, the superstar sold 1.287 million copies of the album last week, making it the first released this year to sell a million copies, and the year’s second-highest seller overall, behind the Frozen soundtrack. As reported by USA Today, Swift is the first act ever to have three albums sell a million copies in one week: her Speak Now release sold 1.047 million in 2010, and two years later Red debuted with 1.21 million sales in one week – the last time any artist album did that.

“She’s an incredible anomaly, like no other artist,” says Keith Caulfield, Billboard‘s associate editor of charts/sales. At a time when year-over-year album sales have fallen 14%, “she has convinced consumers to want to buy an album. They want the full and complete Taylor Swift experience, and that experience includes buying the album,” he told USA Today.

Only 18 albums have ever sold a million copies in a single week. The week Red was released it accounted for nearly one out of every five albums sold, and 1989 took 22% of all album sales the week it came out. “I don’t think I’ve ever seen anything be that high a share of the total market all by itself,” Nielsen SoundScan analyst David Bakula says. 

At $9.99 A Month, Streaming Has

Yet To Be The Tide To Lift All Boats

 

     The conventional wisdom – if there is such a thing – within the recorded music industry is that subscription streaming services are the future of the business as CD and download sales continue to atrophy. Still, as label execs, accountants, and attorneys ponder future earnings, there’s a growing realization that that streaming revenue is not growing quickly enough to offset the impact of those declining sales. As MiDA President Mark Mulligan wrote this week on his Music Industry blog, “it’s an eerily familiar echo of the recurring narrative of the ‘noughties’ that download sales were not growing quickly enough to offset the impact of declining CD sales. The situation is very different now in that the industry licenses the disruptive force.”

A decade ago the combined impact of changing consumer behavior patterns, growing piracy adoption, and the loss of content scarcity were factors the industry had little control over, Mulligan says. “Yet this present shift is more fundamental and will have much bigger long-term impact. This is the shift to the consumption era. Streaming happens to be the tool of the moment for harnessing that shift but with current pricing strategy the industry’s toolset is woefully unable to fully harness the massive potential that exists.

Mulligan says the single biggest issue is the binary nature of streaming pricing: $9.99 or free. “The leap from zero to $9.99 is simply too big,” he explains. “Even a 30-day trial still leaves the consumer with the same zero to $9.99 leap at the end.” As a result, the super fan aficionados are now spending less because of streaming, as 23% used to buy more than an album a month, while now they spend $9.99 a month – and that spending is spread across a far greater quantity of music, meaning a smaller pie is being divided into even smaller slices.

“It wasn’t meant to be this way,” Mulligan says. “A high tide was meant to rise all boats. Mass market music fans were meant to increase their spending to $9.99. The aspiration is reasonable enough,…but it will take some time to get them there and they need a helping hand in the meantime.”

 

A publication of Bunzel Media Resources © 2014

 

It’s Time To Revive Hypercard

http://cdn.arstechnica.net//wp-content/uploads/2012/05/HyperCardbird-e1338220256722.jpg

HyperCard, an application program and programming tool released for the Apple Macintosh in 1987, represented the ‘computing for the people’ philosophy that enabled users to go past the pre-built software that came on their machines, and to program and build software of their own. “Mac users could use Hypercard to build their own mini-programs to balance their taxes, manage sports statistics, make music – all kinds of individualized software that would be useful (or fun) for individual users.” Now Jer Thorp writes that the end of HyperCard left a huge gap that desperately needs to be filled – a space for an easy to use, intuitive tool that will once again let average computer users make their own tools. According to Throp, this type of plain-language programming makes sense, particularly in an application that was designed specifically for non-programmers. “I find the largest concern for learners to be not with the conceptual hurdles involved in writing a program, but with obscure and confusing syntax requirements. I would love to be able to teach HyperTalk to my students, as a smooth on-road to more complex languages like JavaScript, Java or C++.” By putting the tools of creation into the hands of the broader userbase, we would allow for the creation of ultra-specific personalized apps that, aside from a few exceptions, don’t exist today.”

HyperTalk wasn’t just easy, it was also fairly powerful. Complex object structures could be built to handle complicated tasks, and the base language could be expanded by a variety of available external commands and functions (XCMDs and XFCNs, respectively), which were precursors to the modern plug-in. But ultimately, HyperCard would disappear from Mac computers by the mid-nineties, eclipsed by web browsers and other applications which it had itself inspired. The last copy of HyperCard was sold by Apple in 2004. “One thing that’s changed in the intervening decades is that the hobbyist has largely gone by the wayside. Now you’re either a user or a full-fledged developer, and the gulf is wider than ever,” writes Peter Cohen. “There’s really nothing like it today, and I think the Mac is lesser for it.”

~Slashdot~

DIGITAL MUSIC NEWS

Record Label Coalition Asks Appeals

Court To Uphold Verdict Against Vimeo

 

Gavel      Emboldened by last month’s ruling that SiriusXM was financially liable for playing music recorded prior to 1972, a coalition of record labels now is asking the 2nd Circuit Court of Appeals to uphold a ruling issued earlier this year by U.S. District Court Judge Ronnie Abrams in New York. In that decision Judge Abrams said online music service Vimeo was ineligible for the Digital Millennium Copyright Harbor Act’s safe harbor protections for any user-uploaded clips with pre-1972 music. As reported by MediaPost, the labels this week filed papers asking the 2nd Circuit to uphold Abrams’ ruling, arguing that the “plain language” of the Copyright Act supports the idea that Congress intended for pre-1972 music to be treated differently from music recorded after that date.

Vimeo is appealing Abrams’ ruling, arguing that it has no practical way to distinguish pre-1972 recordings from newer ones. Moreover, the company says the Digital Millennium Copyright Act contains safe harbor provisions that give online companies immunity from infringement liability for material uploaded by users, as long as the companies meet certain requirements – including that they remove infringing material upon request of the copyright owner. However, the Copyright Act of 1976 – which overhauled U.S. copyright law – says it doesn’t annul any “common law” rights that existed before Feb. 15, 1972. Thus, the labels insist the provision preserving pre-1972 common-law rights means that the DMCA’s safe harbors don’t apply to older music.

Different judges have reached different conclusions about this issue, and a number of Silicon Valley companies, including Google, Facebook, and Twitter, have supported Vimeo in the dispute. Additionally, digital rights groups including the Electronic Frontier Foundation have filed papers supporting Vimeo. In a friend-of-the-court brief, the EFF said treating pre-1972 and post-1972 music differently would “create an impossible burden for service providers and would stifle innovation.” 

Apple Says iTunes Store Revenue

Grew, But Overall Music Sales Dropped

 

Increase and Decrease      In an 88-page annual report filed Monday with the Securities and Exchange Commission, Apple Inc. revealed the iTunes Store overall took in more revenue in its 2014 fiscal year – which ended September 27 – than it did last year, despite the fact that music sales have fallen. “The iTunes Store generated a total of $10.2 billion in net sales during 2014 compared to $9.3 billion during 2013,” Apple said. “Growth in net sales from the iTunes Store was driven by increases in revenue from app sales, reflecting continued growth in the installed base of iOS devices and the expanded offerings of iOS Apps and related in-App purchases. This was partially offset by a decline in sales of digital music.”

As noted by CNET, Apple didn’t give specifics on how much digital music sales have declined, but the Wall Street Journal last week cited “people familiar with the matter” who said such sales have skidded 13% to 14% since January 1. In a statement that seems to support this estimate, Apple said, “The company’s digital content services have faced significant competition from other companies promoting their own digital music and content products and services, including those offering free peer-to-peer music and video services.” The Journal pinned the blame on growing competition from cheap music sources, such as free videos and $10-per-month unlimited music subscription plans.

A drop in digital music sales is having an impact on global music sales, as listeners to streaming services are buying fewer digital albums and tracks. Apple took steps earlier this year to counteract this shift by acquiring Beats Music, which the company hopes will help it regain prominence as the #1source for digital music. Rebranding the Beats service and integrating it with iTunes should help do this. 

Music Fans Will Come Back To

Apple For These 3 Reasons

 

Apple      Apple is in danger of losing its music industry dominance. That’s the hypothesis of the analysts at Tech Cheat Sheet, which this week reiterated that the digital music downloads market has been in a steady decline over the past year, as more consumers shift from buying digital music files to subscribing to streaming music services. Citing and Nielsen’s and Billboard‘s 2014 Mid-Year Music Industry Report, they noted that individual digital track sales and digital album sales fell by 13% and 11.6%, respectively, in the first six months of 2014 vs. the same period last year. At the same time, on-demand audio streaming grew by 50.1%.

Although Apple has been able to buck trends in the wider smartphone and PC markets, a recent report from The Wall Street Journal suggested the company has not been as fortunate in the digital music download market. Still, the company is not about to surrender its dominance of the retail music market without a fight, and the Cheat Sheet gurus offer three steps Apple is taking to regain its prominence in the digital music universe:

  1. Integrating Beats Music into iTunes: It appears Apple has plans to fully integrate the music streaming service into its iTunes Radio service; rebranding the newly acquired subscription-based music streaming platform with the iTunes label may help the company garner more users who are familiar with Apple’s iconic brand.
  2. Undercutting the competition. Apple is pushing record labels to give it a discount rate that would allow it to offer Beats Music subscriptions for only $5 per month, instead of the $10 per month standard charged by most other competitors.
  3. Apple may be introducing a new digital music format. There are numerous indications that Apple is working on a digital music format that, according to U2 frontman Bono, “will prove so irresistibly exciting to music fans that it will tempt them again into buying music – whole albums as well as individual tracks.

New Tidal Streaming Platform To Compete

Against Spotify With “Lossless” Digital Music

 

Mobile increase      In a gamble (of sorts) that pits quality against quantity, a new streaming music service known as Tidal launched in the U.S. and U.K. this week in an effort to compete directly with such online platforms as Spotify, Deezer, and Beats Music. Developed by Scandinavian technology company Aspiro, Tidal’s monthly subscription is twice the price of most of those rivals – $19.99 vs. $9.99 – with the firm hoping that its promise of “hifi-quality” music induces music fans to pay the extra cost. The service will stream tracks at “lossless” quality – FLAC/ALAC 44.1kHz / 16 bit files at 1411 kbps, to be specific – with distribution partnerships already signed with a range of hi-fi manufacturers that include Sonos, Denon, and Harman.

As reported by The Guardian, Tidal is betting on more than just high-quality audio. It has 25 million individual tracks in its library, as well as 75,000 music videos and a team of editors writing features and interviews about established and emerging artists. “The music is just one part of the service,” Andy Chen, Tidal’s chief executive, said in a statement. “The expert editorial educates, entertains, and enriches the music experience while the music videos complement the music perfectly. We are sure that Tidal will quickly become the music streaming service of choice for all who appreciate high quality at every level.”

Unlike other subscription-based services, Tidal is not offering a separate “introductory” version supported by advertising. Parent company Aspiro has signed licensing deals with all three major labels, as well as independent labels and collection societies in the U.S. and U.K. According to company information, Tidal’s roots lie in WiMP, the Aspiro-owned service that is a rival to Spotify in Scandinavia, and which has its own double-price WiMP HiFi tier offering lossless-quality streams. At the end of June 2014, WiMP had 580,000 paying users, including 17,000 signed up to its HiFi version. 

Motley Fool: With Audio Cards Twitter

May Have “Done Music Right”

 

Twitter Music     It’s been a tough week so far for Twitter, which reported on Monday that its usage numbers stalled in the third quarter, and the number of new users has slowed dramatically. This news didn’t keep the Motley Fool from noting that the social media giant finally may have gotten its music platform moving in the right direction, following last year’s #Music debacle that shut down less than 12 months later.

As the Fool reported, Twitter is giving music a second chance with its rollout of Audio Cards, which were developed to fix the numerous problems users had with #Music. Audio Cards offer a simple solution for users to share music simply by pressing a play button. Not only can they launch a song in a new window, but they can “dock” it so they can continue browsing their timeline. To do this, Twitter enlisted the help of Soundcloud, which is highly popular with social media users and has been an acquisition target in the past. With a new round of debt funding, Twitter may make another go at Soundcloud soon, Motley Fool says.

Twitter also is partnering with Apple, allowing any song on iTunes to stream through Twitter, ad giving users the choice to easily purchase downloads through their timeline with just a few taps. Apple was quick to join up with Audio Cards as a way to help boost activity in its iTunes store, and the company is hoping its early adoption helps spur digital music sales. 

New Microsoft “Music Deals” App Offers

Select Albums At Heavy Discounts

 

Music Business      Windows Phone, PC, and tablet users can look forward to scoring some new music on the cheap as Microsoft has unveiled an app that offers albums for as little as $0.99. Silicon Republic reports the Microsoft Music Deals app allows 101 albums to be downloaded every Tuesday, with newer records available for $0.99 and older LPs costing $1.99. For instance, some of the albums available for next to nothing this week are Slipknot’s latest album .5: The Gray Chapter, Maroon 5’s V, Prince’s Purple Rain, and Fleetwood Mac’s Rumors.

     Once an album is purchased via the app it’s added to a user’s Xbox Music account, where it can be downloaded for listening. The app is only available within the U.S., with no announced plans for a worldwide rollout.

The news follows recent reports of Apple re-branding its Beats Music platform and integrating it with iTunes Radio, with new licensing arrangements that allow it to undercut the competition. (See story, above.) If this is the case and Apple is able to lower the cost of music streaming (and/or downloads), it would seem the two tech giants might become engaged in a digital music price war.

 

A publication of Bunzel Media Resources © 2014

 

Sonic Youth founder talks legacy, why artists can’t expect to get rich, Brooklyn — and his great new solo album

Thurston Moore: Sonic Youth “wasn’t really surprising anymore”

Thurston Moore: Sonic Youth "wasn't really surprising anymore"
Thurston Moore (Credit: Matador/Phil Sharp)

The centerpiece of Thurston Moore’s fourth solo album, “The Best Day,” is an 11-minute pagan guitar jam featuring some of the boldest lyrics the man has ever written: “You draw a circle around the holy fortress,” he sings. “Animals they sing and adore you.” With its tensely churning guitars and occultic imagery, “Forevermore” summons Tolkein and Crowley and even Hammer Horror icon Christopher Lee to show the weird and world-conjuring power of romantic desire. In other words, it’s a love song—or at least Moore’s version of a love song. Any treacle or schmaltz or heart-on-sleeve professions of devotions are elbowed aside by noisy guitars and an engagement with weird corners of pop history from Zeppelin to “The Wicker Man.”

Last year Moore moved to London—specifically, to a small village on the city’s outskirts called Stoke Newington—after more than 30 years in New York, where he served as an avatar of the city’s boho sensibilities. Whether that move was motivated by the need for a change of scenery or by the dissolution of his marriage to Sonic Youth bassist/singer Kim Gordon is largely beside point. What matters is that the transatlantic relocation has given Moore a whole new underground to explore. He’s part expat, part anthropologist.

Just as “Low” was David Bowie’s Berlin album, “The Best Day” is Moore’s Stoke Newington album, a collection of songs defined by the particulars of locale. The music is steeped in British history and culture—in its folk, pop and even metal scenes. Sonic Youth drummer Steve Shelley is the only other Yank in Moore’s band, which features guitarist James Sedwards (of Nought, The Devil and Zodiac Youth) and bassist Deb Googe (of My Bloody Valentine). Several tunes feature lyrics penned by a local poet named Radiuex Radio.

“The Best Day” is not a dramatic reinvention by any means; in fact, Moore admits it sounds in some ways like a Sonic Youth album, but adds that such similarities are inescapable. Instead, the album reveals once again Moore’s motivating restlessness and curiosity, showcasing an artist forever twisting expectations. From his new home across the Atlantic, he spoke to Salon about… well, pretty much everything: the gentrification of New York City, the revolutionary act of cutting your hair, the radical activism of the 1970s, the differences between writing a poem and writing a song, even the DIY punk scene in Bloomington, Indiana.

How do you like London so far?



What everyone says about living in England, specifically the weather is so shitty, is actually mistaken. It can be gray and rainy here for period, but we don’t have ice storms here like we did in New York. And it’s not like Vietnam in the summer. I dig it. It’s consistently nice here, but you have to live here to know that. When I used to visit, it would be incredibly rainy and gray and horrible, and I could never understand why anybody would want to live here. I guess you have to plant your feet here for a while to see that. But I’m not really here that much. I travel and tour quite a bit, which is okay but can be annoying because I feel like just when I’m getting into being here and discovering all there is to discover about this city, I get uprooted.

There’s obviously a lot of music to discover in London, although I think most of your fans associate you with New York that it feels a little like we lost a landmark or something.

There’s always been a pretty direct relationship between New York and London in my time. I moved to New York City in 1977. I’d been going there since 1976 and most of the information in New York was coming via London—more so, I think, than the rest of America. That didn’t really happen until later, when more regional and suburban activity started happening in the hardcore and underground scenes in the early ’80s. All of a sudden, those American scenes were more interesting than what was happening in England and Europe. But for me London seemed so exciting and glamorous to fantasize about, even while I was living in New York. I had this idea that I would fly to London and live there as a 19-year-old. It’s a good thing I didn’t. New York is three miles wide and twelve miles long—or something like that. And London is the size of Rhode Island. It’s huge.

Has the city been welcoming?

I don’t feel transplanted. I don’t feel like I’m trying to infiltrate England or anything. I found it incredibly welcoming. There’s a very active music underground here, and people get really interested in and excited by anybody who’s doing anything. Of course, it has the shelf life of about a day, but if you have some kind of vision, they’ll let you exist. I have a lot of history, so when I came here, people seemed happy about it. I got out and see bands and go to venues. I do things here. It reminds me a little more of what New York was like in the ’80s. It’s a little less sold out, although it’s still expensive to live here. It’s gritty, and there’s a street culture. It’s a very different kind of culture because everything shuts down at midnight. So it’s interesting in that respect. Plus, people read here. There are bookstores everywhere, which I like a lot. I dig it. But I still love New York City. It’s my home. When I go there, I feel like I’m going home. I know every little corner and aspect of it, even if I’m removed from it in a way because there’s a new generation there. It’s a more moneyed generation.

New York definitely seems like a different place than it was even 10 years ago.

For sure. Manhattan is still really bewitching in a way. There are certain areas that are off the commerce grid, way down in the tip of the island, that you can get lost in. It used to be that the whole area below 16th Street was our apocalyptic playground, but that doesn’t exist at all anymore. And there’s Brooklyn, which is its own entity. It’s great how Brooklyn has had this amazing resurgence of people coming in there and starting businesses and making it this fun capital. But that’s not my scene. It’s a younger person’s scene. It’s also a high-rent scene, so I don’t find it too attractive in that sense.

Brooklyn certainly prices you out if you’re trying to start something up. You’re almost better off going to Detroit.

The whole Detroit thing is great. To actually take that leap, go to Detroit, and do something on a big plot—that’s pretty radical. But it’s too cold for me. New York is cold, too, but Detroit is really cold. I’m in my mid 50s. I grew up in cold weather, but now I can see why old people go south. I can see why Iggy Pop lives in Miami Shores or wherever he lives. I get it. It’s time to worship the sun for a while. Where are you? Are you in New York?

I’m in Bloomington, Indiana, actually.

Cool. I have a bit of a connection to Bloomington, because there was this scene going on there in the mid ’70s, a bit of an art-rock scene coming out of the university. So, when I was 16 years old, I was pen-palling with these guys in Bloomington. There was a fanzine called Gulcher, and the first time I ever got published was a photo-booth photo of me looking tough and smoking a cigarette and talking about punk bands that I saw at Max’s Kansas City. I was writing back and forth with Eddie Flowers, who had a band called the Gizmos. I actually wrote to him in ’76 and said, Maybe I’ll come out to Bloomington and join you guys. And he said, No! Don’t do that. We have enough people in the band. I think MX-80 Sound came out of Bloomington, too. They were a really weirdo art-rock hippie punk band at a time when nobody knew how to cut their hair yet.

That was the whole thing, trying to figure out how to cut your hair and whether to wear straight-leg pants or not. It was a big deal. When I first started going to New York, even the Ramones had long hair. Lenny Kaye had this great long hair in the Patti Smith Group. There are early pics of Blondie where everybody has long hair. That didn’t last too long. I think it’s when people first see Television onstage with Richard Hell. That was really shocking. I remember that the audacity of anybody getting onstage to play rock music was just insane.

Now it seems odd that anyone would get upset about a musician’s haircut.

The identity of youth culture was all about hair. Hence the Broadway play. Hair was the flag. For somebody to cut it off and make this radical music early on, they had better have something to stand on. And there was. There was this whole attitude of change. It wasn’t just Television. It was people like Jonathan Richman—this idea of being a math nerd onstage was really wild. Alienated geeks could respond to people who were smart and looking for intellectual kicks. They knew they couldn’t look like Robert Plant, but they could look like Jonathan Richman. It was a necessary change.

Tell me about the artwork for “The Best Day.” That’s a very striking image on the cover.

The dog’s name was Brownie, and the woman is my mother. Her name is Eleanor. The picture was taken by my father when they were courting in the 1940s. It was down in Florida, around Miami. I found that photo among her photos earlier this year. When I saw it, I thought of different titles for the photo and the record, and I came up with “The Best Day.” I thought there must be a thousand other albums called “The Best Day,” or at least a thousand songs called “The Best Day.” I did a little research and could find only one song, a Country and Western song from years back. I didn’t listen to it. I was afraid to. But I had this other song I wrote, an instrumental, and having an album title already, it allowed me to write lyrics to the title song of the record. I felt good about having a title that’s about goodness instead of anger.

It certainly puts these songs in an almost literally sunnier context.

And my mother is still alive. The dog is no longer with us. My father’s no longer around either. In that respect you just think about how we all have these amazing days in our lives, but we have so much else—a lot of difficulty, a lot of stress. To me, it was like I was acknowledging that those times do exist and celebrating them. So there it is, on the cover. But you know, there’s always this underlying wistfulness in these things. We’re all wistful creatures.

The best day ends at midnight and then an okay day starts. Or a bad day. That push and pull between contentment and melancholy can make for a dynamic album.

We all have bad times in our lives. That’s a commonality among everybody, so to contemplate it is good, especially if you’re doing it as an artist. It’s an emotional expression, whether you’re doing it in music or visual art or literature. For me it feels like there’s a bit of self-medication to it, for want of a better word.

I would imagine that it would make them easier to live with for the next several months, when you’ll be playing them every night.

Sometimes I see bands whose whole oeuvre is based on anger and their own pissed-offed-ness. Every song is, I’m fucking losing it! Any kind of hard punk/metal thing is all about anger and negative vibes. Man, you have to express that anger all the time when you’re on tour. I find I don’t want to do that. There’s a lot I could scream about, but I’d rather transmute it in a way and try to turn it around. Put some light onto it, make it humorous, and see what happens. Maybe not talk about the bad, but talk about the good.

Yoko Ono said to me once, Let’s not talk about these people who are doing such bad things on the earth, be it Putin or whoever. When you talk about them, you name them, and when you name them, you give them this energy and this power. So don’t talk about them. Talk about the people who are doing good things. Let’s name them and give them the power. There’s something very ancient and Buddhist-centric about that kind of thinking, obviously, but I find it to be a very good rule of thumb in writing and presenting yourself as a public figure. That did have an effect on me.

Is that where “Detonation” comes from? Some people might look at the subject matter—political activism in the UK during the late 1960s and early 1970s—and see something very negative. But that song actually celebrates that kind of radicalism?

Those activists were university students, poets, and artists who wanted to make a point without harming anyone. They wanted to create some damage in the face of this imbalance of power in the cities. It was young men and women together—very gender-balanced. They were thrown in jail for being rabble-rousers and anarchists, and most of them continued their radical lives when they got out of jail. Some of them even lost their lives. That kind of devotion is really intense. They just couldn’t walk away from the cause, and that impresses me. I live in a little village called Stoke Newington, and there was a group here called the Angry Brigade, who were imprisoned for putting explosives in different places that were identified with the war machine. They made sure nobody got hurt; it was complete theater. Still, they were caught and thrown in the pokey.

That song looks at their creative lives. I didn’t write the lyrics. It was written by this transgender poet friend of mine who lives here named Radiuex Radio. She wrote three lyrics on the record—that song, a song called “Vocabularies” and another called “Tape.” I did do a little editing, which I’ve never done. In Sonic Youth we would trade lyrics. Someone would write a song for Kim [Gordon] to sing, and I would take some lines from her and use them in a song I would sing. So this kind of collaboration is nothing new.  “Detonation” was one of the first songs from this record that was composed, and there’s another song called “Speak to the Wild” that warns against falling in line with authority. I always thought “question authority” was the great badge of my era of ’70s, ’80s, ’90s punk. I always thought it made sense.

This whole album seems to be concerned with your relationship to authority.

I’ve always had a problem with being told what to do. I don’t know why. I think it’s because of my family unit. My parents weren’t especially authoritative. My dad was a typical father coming out of the Eisenhower era. He would spank you as a kid if you were acting up, but he was certainly not a mean guy. He was actually a very nice guy. But he passed away when I was a teenager. My mother was very liberal and open to me having experiences. She wouldn’t lay down the law. She would just worry. So I think what happens when I come into contact with some kind of expectation of authority, I kind of bristle. I feel like I want to create some kind of independence in reaction to it. I think that’s why I was really into hardcore music, because it was rebellious and it wore its rebellion and its emotions on its sleeve. Steve Shelley [Sonic Youth’s drummer] was in a band called the Crucifucks. They were a Midwestern hardcore band that I thought were fabulous, and they had these songs like “Democracy Spawns Bad Taste” and “Who Are All These Men in Blue Pushing Us Around?” My favorite, actually, is “Hinckley Had a Vision.”

Is there a point for you when the rebellion becomes the authority? Do the codes of rebellion become so ingrained that they become the thing to rebel against?

You do have to be careful. Rebellion becomes pretty chic and everybody falls in line with it. I think I’m more interested in unique independence. My favorite musicians were always the outliers, the ones who are beyond category: people like Sun Ra and Iggy Pop and Lou Reed, these itinerant people who had a singular voice as opposed to a groupthink mentality. On the other hand, I really like the groupthink of the initial punk movement. I like the idea of community, when a certain music sounds the same or has the same laws of composition, like reggae or Country and Western or different genres of jazz. When people say all reggae sounds the same, I’m like yeah, because this is a really unified idea. And I like that idea of unity, but the people who really attract me are the ones doing something singular. Obviously that’s what I wanted Sonic Youth to be. That’s who we wanted to be, and I guess that’s who we were.

Any band with a catalog as large and a legacy as long as Sonic Youth’s will necessarily meet certain expectations from fans and critics. Do you feel a need to rebel against those expectations of what the band was or could be?

Always. I feel like I don’t want to be decoded. The type of songwriting that was going on in Sonic Youth I think at some point was fairly well figured out. When we used to tour, the audience always had this kind of question mark over its head, but that kind of disappeared later on because they figured us out. People could dig the music, but it wasn’t really surprising anymore. The very few reviews I’ve read of “The Best Day” say that it sounds like a Sonic Youth record. Well, there are reasons for that. I do extend myself into other places where I play completely improvised music  or get involved with genre bands like Twilight, but for what I do as a songwriter, sitting alone with my guitar writing a song, it’s going to come out a certain way and sound a certain way. And I’m not going to try to change that just so it’s not recognizable.

In a way it should be recognizable, but it’s certainly not new. You’re only new once with what you’re doing, but that’s a great thing about being in a band—that initial impact that you have. Oh, this is a new sound. By your third or fourth record, it’s been decoded. I think it took a little while longer with Sonic Youth because we learned how to play as we existed. We learned to play in our own way, and we would settle into motifs for a few record. Those would progress and develop as years went by, but there would never be any radical changes. It wasn’t like, let’s go out and all play pianos. I don’t know what would have happened if we had done that. We would have lost our management and our booking agents.

When we did the record “Washing Machine,” it was in my mind to not have our name on the record, and just have the name of the band be Washing Machine. We were supposed to tour with R.E.M. when that record came out, and I asked if we could be listed as Washing Machine. No way. Nobody would go for it. So I had to settle for saying to people that we were called Washing Machine and the name of the album is “Sonic Youth.” But that didn’t fly either. I didn’t push it. I do side with reason. I’m not a complete nut.

It seems like you address some of those impulses with side projects and collaborations, like the “Caught on Tape” album with John Moloney and the chapbook with Tim Kinsella.

I do, and I allow all of those things to inform each other as well. The most separate thing is definitely working with writing. I teach writing courses in the summer at Naropa University, in the poetry workshop there that Allen Ginsburg and Anne Waldman founded in ’74. The Jack Kerouac School of Disembodied Poetics, they call it. That vocation is separate from the music activity, although I think there’s a wish that I’ll bring my guitar and play a little bit. But I don’t do it, because I want to be here teaching writing as a writer. I know I’ll never be looked upon as a writer, because I already have this history as a musician. I’ve learned how to deal with that. I like the idea of people being able to do whatever they want to do as artists. There’s always this dictum that says you shouldn’t spread yourself too thin across different disciplines. I disagree with that. I think you should be able to do what you want to do. That’s what John Cage was all about. You do whatever you do in an expressive medium to the best of your abilities, regardless of what medium it is. He called it interdisciplinary art.

So writing a poem doesn’t come from the same creative impulse as writing a song.

They can be different impulses. I’ll work on writing poems for the sake of writing poems, because they have a certain discipline—the way the line breaks, or the meter of the line, or just the visual nature of the poem on the page. I’m not writing with any intention for it to be a lyric in a song, but a lot of times when I’m writing songs, I’ll go back to a poem and try to sing the poem without having to modify or adjust it. Nine times out of ten I’ll have to modify or adjust it to fit the song. Sometimes I’ll take lines from different poems and create a third kind of piece that will become the lyrics to a song. I’ll ransack notebooks. When I write lyrics that are primarily for a song, it’s all about rhyme schemes. Rhyme schemes don’t really exist for me when I’m working with poetry. Rhyming in poetry is mostly outdated, but you can still utilize it to some degree. But you don’t want to do moon-june-spoon in poetry.

People generally think of writing as a solitary pursuit, yet you’ve managed to make it a collaborative endeavor. In fact, almost all of the art you create seems to be created socially.

To some degree. Sonic Youth worked best as a really democratic model. I always thought we worked best when nobody was coming in with song ideas. We would just get together and play, and we would hear things happening that we would focus on and create a song out of. That’s where the most interesting and magical stuff happened. But a lot of times one of us would come in with song ideas. I spent a lot of time writing songs and thinking, What am I going to do with these? So I would bring them in to Sonic Youth rehearsals and everybody would write their own parts and it would become a Sonic Youth song. But with the solo stuff, I show people what I’m doing and I don’t really allow much invention with it. It’s not, do whatever you want to do. It’s more like, I’d like you to play in unison with me here. Or I’d like you to do this on bass. It’s a different relationship than I had with Sonic Youth, because that band started with people who wanted to make something together. The band on “The Best Day” formed with me making phone calls to three people and asking if they would play this music I’m writing.

I always want to collaborate with people that I’m really interested in. When I started playing Lydia Lunch, I was so aware of what she was in the early ’80s, so it was incredibly startling to have this invitation to work with her. And then I had this whole history of working with Patti Smith and Merce Cunningham and Cecil Taylor. These people are giants to me, and all of a sudden I was partnering with them. It still happens today whenever I connect with someone who’s significant to me. I’ve always been a huge enthusiast of other people’s works, and I hold it in high regard. Those are teaching materials for me.

I think about people who lead ascetic lifestyles where they get into this state of no belongings and they just have this loss of self. In a way I have a lot of problems with that. I’m intrigued by that kind of life—you can have loss of self, but you’re always going to be imprisoned in your own consciousness. You have to deal with that. I find that the documents are my communications with the real world. I feel like I have plenty of connection with the metaphysical/spiritual world, too. I don’t feel a need to get rid of my belongings just so I can have this unattached lifestyle. I like the attachments. I find them to be friendly and interesting and exciting. I’m thinking of a whole new Buddhism where you surround yourself with mountains of paper.

Is that harder to do when music and culture are becoming less physical and more ephemeral?

Just by the fact that something is digital, it’s automatically insubstantial. I have no feeling for it. For me it’s there for a service and an immediacy of interaction, but it doesn’t turn me on. I don’t think it’s a threat to the more vibratory materials, like books and records and things you can actually touch. Because your senses are not involved in the digital. Even your hearing is negated because you’re just hearing digital output, which is numerical. Your brain doesn’t have much fun with it. It just processes it as information. I don’t get turned on by information. I get turned on by the mystery. But I don’t think these things are disappearing. There’s a lot of replacement going on, but there’s still plenty to deal with. It doesn’t disturb me.

It is a little harder to make a buck. It definitely puts a crimp in a lot of people’s lifestyles, people who made good money being in bands. There’s a certain humbling that I think is significant. Why should being in a band make you more money than any other job? Just because you have a guitar and you’re onstage doesn’t mean you have the privilege of being a millionaire. I never had that privilege, but it’s happened to a lot of people. Would I have accepted it? Certainly. Anybody could use the coin. But I always thought it was a distorted situation where people in the arts should have that ambition of great wealth. It would be nice, but it’s completely unnecessary to the craft.

I try not to have that define me or my pursuits at all. I say that, but at the same time, I’m very clear on how I tour and what is sustainable and what makes more sense financially. You can make more money playing this festival than playing this cool underground club. What are you going to do? I’m going to play the festival. I have to pay the rent just like anybody else.

 

http://www.salon.com/2014/10/18/thurston_moore_sonic_youth_wasnt_really_surprising_anymore/

 

DIGITAL MUSIC NEWS

Judge Slashes $48 Million Verdict Against

MP3Tunes Founder Michael Robertson

 

     A federal judge this week slashed record label EMI’s $48 million jury verdict against defunct music storage service MP3Tunes and its founder by about $33 million, ruling many of EMI’s claims were “just too big to succeed” and were backed by very little actual evidence. U.S. District Judge William H. Pauley III tossed out most of the jury’s findings of secondary infringement against MP3Tunes and founder Michael Robertson under the Digital Millennium Copyright Act. The judge also cut common law punitive damages from $7.5 million to $750,000, and additional elements of the ruling could reduce the total amount to just over $10 million.

Earlier this year a Manhattan jury found MP3tunes and Robertson liable for copyright infringement and awarded $48.1 million in damages. EMI Group Ltd originally contended in its 2007 lawsuit that MP3tunes and another website known as Sideload.com enabled the infringement of copyrights in sound recordings, musical compositions, and cover art. Since that suit was filed EMI was split up, with Vivendi SA’s Universal Music Group acquiring its recording music business and a consortium led by Sony Corp purchasing its publishing arm in 2012.

In his ruling, Judge Pauley excoriated attorneys on both sides of the case. Slamming EMI’s lawyers, he wrote, “Despite this Court’s efforts to winnow the issues, the parties insisted on an 82-page verdict sheet on liability and a 331-page verdict sheet on damages that included dense Excel tables, necessitating at least one juror’s use of a magnifying glass. While the jury did its best, their assignment was beyond all reasonable scale.” Judge Pauley then turned his attention to Robertson, noting that he “created a business model designed to operate at the very periphery of copyright law.”

The plaintiffs now can either accept the decision or embark on a new trial on punitive damages, the judge said. He gave both sides until Oct. 17 to submit proposals for a final judgment. [Read more: Global Post Hollywood Reporter

Judge Hits Grooveshark In

Federal Copyright Infringement Case

 

Gavel      A federal judge in New York this week ruled that Grooveshark, an online music service long vilified by the major record companies, infringed on thousands of their copyrights. Judge Thomas P. Griesa of United States District Court in Manhattan said the digital music platform was liable for copyright infringement because its own employees and officers – including Samuel Tarantino, the chief executive, and Joshua Greenberg, the chief technology officer – uploaded a total of 5,977 of the labels’ songs without permission. Those uploads are not subject to the “safe harbor” provisions of the Digital Millennium Copyright Act.

The case stems from Grooveshark’s claim that the Digital Millennium Copyright Act protects websites that host third-party material (content posted by users and not company employees) if they comply with takedown notices issued copyright holders. Grooveshark and its parent company, Escape Media Group, insisted in court documents and testimony that all of the music files on its servers had been uploaded by its users.

But Judge Griesa didn’t buy that argument, and on Monday said, “Each time Escape streamed one of plaintiffs’  recordings, it directly infringed upon plaintiffs’ exclusive performance rights.” He also found the company destroyed important evidence in the case, including lists of files that Mr. Greenberg and others uploaded to the service.

As reported by The New York Times, the next step of the case will be to set damages, and the possibility of a multimillion-dollar ruling against Grooveshark puts the service’s future in doubt. When asked for a comment about the summary judgment decision, John J. Rosenberg, a lawyer for Grooveshark, said, “The company respectfully disagrees with the court’s decision and is currently assessing its next steps, including the possibility of an appeal.” 

Judge Rules Expert Testimony In Apple’s

Alleged “Monopoly” Case Can Be Included

 

Monopoly man      Unbelievably, the class action suit that claims Apple Inc. is guilty of monopolistic practices because of an iTunes update continues to move through the court system. According to Courthouse News Service, a federal judge has ruled the Cupertino, CA-based tech giant cannot exclude a key expert for the plaintiffs who are accusing it of monopolizing digital music and music players between 2006 and 2009.

The lawsuit, filed in 2005, alleges Apple illegally acquired a digital music player monopoly with an iTunes update that made it impossible for iPods to play songs purchased from another online music store. As part of their case, the plaintiffs asked Stanford economist Roger Noll to testify that the update made it more costly for an iPod user to switch media players because it would be harder to collect music that could be played on all devices. Noll said the update also encouraged iPod owners to only buy music from iTunes.

The resulting monopoly allowed Apple to charge more for iPods, causing $305 million in damages to the class, Noll told the court. Apple had asked the judge to exclude Noll’s testimony in December 2013, but U.S. District Judge Yvonne Rogers last week denied that motion. She also denied a motion by Apple for summary judgment. 

Digital Streaming Revenue Grew In First

Half While Overall Revenues Slipped 4.9%

 

     U.S. music revenues slipped to $3.2 billion in the first half of 2014, a 4.9% drop from the $3.35 billion the industry tallied in the first half of 2013. According to the latest figures released by the Recording Industry Association Of America (RIAA), digital music revenue declined about 0.5% to $2.203 billion, from $2.214 billion in the first half of 2013. Meanwhile, subscription revenue jumped 23.2%, to $371.4 million from $301.4 million, and ad-supported streaming jumped 56.5% to $164.7 million from $105.2 million. CD sales fell 19.1% to $715.6 million from $994.1 million, while the sale of vinyl product – an infinitesimal line item – jumped 41% to $6.5 million, from $4.8 million in the same period last year.

The RIAA says paid subscription services averaged 7.8 million U.S. subscribers in the first six months of the year, up from an average of 5.5 million subscribers in the first half of 2013. Download sales of albums and tracks fell 11.8% to nearly $1.3 billion from $1.47 billion. Distribution of performance royalties collected by SoundExchange grew 21.3% during the same period, from $266.5 million in the first half of 2013 2013 to $323.4 million in H1 2014.

As noted by Billboard, the RIAA for the first time also provided an overall market volume for wholesale. Typically, the RIAA numbers add up the value of units for each album by that album’s list price, not the wholesale price that the labels receive when they ship the albums to retailers. But converting their data to wholesale values for downloads and the physical formats, RIAA estimates the U.S. music marketplace at $2.2 billion, down from $2.3 million at mid-year 2013.

 

Spanish Broadcasting System, 7digital

Launch Digital Content Partnership

 

Handshake      Spanish Broadcasting System has entered into a partnership with 7digital to provide SBS’ LaMusica.com with secure content management technology and a royalty reporting system to support additional music products beyond the site’s current streaming content. LaMusica.com currently streams 14 of the broadcasting company’s Spanish-language radio stations, and also provides a variety of entertainment, news, and cultural offerings leveraged from SBS’ radio network, television, and live entertainment properties.

“We continue to invest in strengthening our LaMusica.com portal and extending the robust content offerings we provide to the nation’s Latino music fans,” SBS Chairman/CEO Raul Alarcón, Jr. said in a statement. “Our agreement with 7digital will provide us with additional tools to maximize the LaMusica.com experience, further building on our momentum as we seek to fully capitalize on our strong media brands and close ties to the vibrant Latino music community.”

“We are pleased to partner with fast-growing entertainment services such as LaMusica.com to enhance the infrastructure that is required to deliver comprehensive and seamless digital entertainment offerings,” Simon Cole, 7digital’s CEO, commented in the same statement. “SBS has an exceptional history in creating top-ranked media brands attracting large and loyal audiences in the nation’s biggest Hispanic media markets, and we look forward to playing a role in expanding LaMusica.com’s operating platform.”

 

Yes, eMusic Is Still Around…And

It’s Returning To Its Indie Roots

 

     For years eMusic – one of the first MP3 download services on the web – positioned itself as specializing in independent label content and, in fact, thrived (somewhat) as a music subscription service, whereby users paid a set fee each month to download a set number of tracks.

Over the years, however, the company grdually aligned itself with the major labels in order to survive, but iTunes and Amazon eventually cornered the mainstream download market, leaving eMusic to languish in the nether regions between major and indies. In fact, most industry execs more or less forgot eMusic still existed, except when it popped up as a sponsor at various industry events.

So imagine the surprise of eMusic’s small but loyal user base this week when they received an announcing the service was ending its partnerships with the majors, and returning to its roots as a hub of indie label content. In fact, the email said that beginning today (Oct. 1, the start of the fourth quarter), eMusic “will be exiting the mainstream music business and exclusively offering independent music. The company’s goal is to build the most extensive catalogue of independent music in the world.” While Complete Music Update calls that an admirable goal, it does raise the question of whether it’s too little, too late, for two reasons: 1) Much of eMusic’s small user base has drifted to the subscription streaming services, and 2) The indie labels that 10 years ago would have applauded this move are now focused on trying to get a piece of that same streaming revenue.

 

A publication of Bunzel Media Resources © 2014

DIGITAL MUSIC NEWS

CA Judge Rules SiriusXM Is Liable For

Pre-1972 Turtles Performance Fees

 

Gavel      A federal judge in Los Angeles this week agreed with 1960s band The Turtles that the recorded music industry can collect performance royalty fees for copyrighted recordings made prior to 1972. In a summary judgment ruling published Monday (Sept. 22), U.S. District Judge Philip Gutierrez ruled SiriusXM had violated California state law by performing 15 recordings of The Turtles dating from before 1972 without a license. The original lawsuit, filed by singers Flo & Eddie, argued that even though Federal copyright laws only covered recordings made after 1972, various state laws provided copyright coverage for works prior to that year.

The Los Angeles ruling thus gives the music industry and its pre-1972 legal theory a major boost. In reaching his conclusion, Judge Gutierrez examined a California law that was enacted in 1982 and meant to address pre-1972 recordings. As reported by Billboard, the statute – passed in the aftermath of U.S. Congress’s decision to expand federal copyright law – was silent on whether “exclusive ownership” of pre-1972 sound recordings carries within it the exclusive right to publicly perform the recording. As such, the judge had to determine whether California’s law was inclusive or exclusive, and the judge’s reading of the law is that other than the exception for cover songs, there’s nothing exclusive about it.

GigaOm called Monday’s ruling the worst-case outcome for SiriusXM and other digital music services because it will likely expand the scope of music on which they must pay royalties. It also could add a further layer of costs for the digital services that traditional AM/FM radio stations do not have to incur. 

SiriusXM Pre-’72 Copyright Ruling

May Mean Nothing Outside California

 

Lawsuit      U.S. Federal Court Judge Philip Gutierrez’ decision that SiriusXM violated the Turtles’ pre-1972 master copyrights is considered a big win for the music industry…but does it have any meaning beyond California, where the original lawsuit was filed? Many legal experts today are scratching their heads and wondering whether Monday’s ruling has any significant implications for other ongoing court cases that argue state laws apply even though the master recording copyright didn’t exist until 1972 in federal law. SiriusXM, Pandora, and other digital music services say they have the right to play pre-1972 recorded music without licensing or paying royalties to record labels and the artists, while labels and artists maintain these services must comply with individual state laws, where they exist.

The Copyright Royalty Board originally said federal law exempts SiriusXM from making such copyright payments, but the CRB’s ruling doesn’t extend to state statutes. This led to the Turtles’ Flo & Eddie to claim copyright protection under California law; subsequent lawsuits also were filed in Florida and New York. Additionally, SoundExchange filed a claim against SiriusXM in federal court in the District of Columbia, while the three major labels filed a lawsuit on the same issue against the satcaster in California state court and against Pandora in New York state court.

Interestingly, last month a different judge ruled the wording in California state law on master recordings is ambiguous and may protect against unlicensed duplication and distribution. “Plaintiffs [the major labels] have not cited any authority for the proposition that the state law rights in pre-1972 sound recordings included rights in public performances of the sound recordings,” Judge Mary Strobel wrote.

“The Flo & Eddie judge [Gutierrez] surely read the interim ruling and said ‘balderdash,'” one senior label executive told Billboard

Apple Denies Rumors Of Beats Closure

 

     In what may have been a major Mark Twain moment, the reports earlier this week that Beats Music was dead may have been greatly exaggerated. While the social media blogosphere was buzzing that Apple Inc. had decided to shutter the service it acquired only four months ago for $3 billion, Hollywood Reporter says Apple claims the story simply is not true. In fact, Apple has been typically silent about how it plans to integrate Beats into its current iTunes offerings, and the service was largely ignored when executives took the stage at a special media event less than two weeks ago to reveal the new iPhone 6.

Still, HR says Apple’s Eddy Cue gave a wink to Beats during his presentation on Apple Pay, and CEO Tim Cook gave the streaming service a shout-out when announcing the launch of the new U2 album. That said, the Beats app, which allows people to access curated streaming music playlists, is noticeably absent from the new iPhones.

So what gives? Actually a source with “knowledge of the situation” says that Apple “is fully committed to offering a subscription service, though changes to any existing products are always a possibility.” Closing Beats Music would leave co-founders Jimmy Iovine and Dr. Dre available to focus on other initiatives for the tech firm, and would support reports that surfaced at the time of the acquisition that Apple paid a premium to sign the music moguls to long-term development deals.

Editor’s note: It’s been clear from the start that Apple has big plans for certain elements of the Beats technology and the team that brought it to fruition. CEO Tim Cook and the innovators in Cupertino obviously have a vision for the Beats technology that far exceeds simply plugging it into its existing iTunes Radio system. Keep in mind that, for every Apple product that has ever shipped in a box, there has been a team of minds that first thought outside that box. 

U2 And Apple Reportedly Are Developing

New Digital Music “Audiovisual” Format

 

     Expanding on the rumor that Apple Inc. has closed Beats Music, Time magazine this week reported the company actually is working with U2 to develop a new digital music format that “will prove so irresistibly exciting to music fans that it will tempt them again into buying music – whole albums as well as individual tracks.” Fresh off the surprise release (and subsequent partial recall) of U2’s new “Songs of Innocence” album, the band’s legendary frontman Bono told Time that the new music format is designed to be something that “can’t be pirated” and that could limit both illegal downloading and legal streaming, activities Rolling Stone says “have chipped away the music industry from a sales perspective.”

“It’s going to get very exciting for the music business,” Bono said, adding that the format will be “an audiovisual interactive format for music that can’t be pirated and will bring back album artwork in the most powerful way. You can play with the lyrics and get behind the songs when you’re sitting on the subway with your iPad or on these big flat screens. You can see photography like you’ve never seen it before.”

Bono said the new format is about 18 months away, which could potentially align it with U2’s planned “Innocence” follow-up “Songs of Experience.” While U2 is championing this new format, the files are more likely to help younger, lesser-known artists than global superstar acts, as the format gives listeners incentive to actually buy music. “Songwriters aren’t touring people,” Bono said. “Cole Porter wouldn’t have sold T-shirts. Cole Porter wasn’t coming to a stadium near you.” 

Japan’s Love Affair With CDs Boosts

Global Sales, But Could Slam Record Biz

 

     Japan is considered be one of the world’s perennial early adopters of new technologies, but its continuing attachment to the CD puts it sharply at odds with the rest of the global music industry. That’s the word from The New York Times, which reports that, while CD sales are falling worldwide, they still account for about 85% of sales in that country, compared with as little as 20% in some countries. By contrast, digital sales are quickly eroding in Japan, going from almost $1 billion in 2009 to just $400 million last year, according to the Recording Industry Association of Japan. Meanwhile, such streaming music services as Spotify and Rdio, widely seen as the industry’s best new hope for new revenue, have stalled in their efforts to enter Japan, where homegrown pop idols by far outsell Western acts.

Analysts contend peculiarities of Japan’s business climate have shaped its attachment to the CD, but cultural factors may also be at play. For instance, Japanese consumers have a love affair with collectible goods, which means that “Greatest Hits” albums do particularly well in Japan, perhaps because of the elaborate, artist-focused packaging. Cross-promotional activities also abound; for example, the hugely popular girl group AKB48 pioneered the sale of CDs containing tickets that can be redeemed for access to live events. This strategy is credited with propping up CD sales, because it can lead the biggest fans to buy multiple copies of an album.

Digital sales in the U.S. have surpassed physical sales a few years ago, but CDs still account for 41% of the $15 billion recorded music market worldwide. Much of this lingering sales strength comes from Japan (as well as Germany), an attachment that worries analysts who contend that if those countries do not embrace online music, an inevitable decline in CD sales will further damage the industry. “If Japan sneezes and Germany catches a cold, that’s it – we’re done,” Alice Enders, a media analyst with Enders Analysis, told the Times

Music Industry Could Learn A Thing

Or Two From Digital Marketing 101

 

     As the digital music industry becomes increasingly competitive (and, perceptually at least, disjointed), record labels wrestle with a disruped digital ecosystem made up of many seemingly disconnected parts. As a result, consumers have the potential to get lost in the mix, leaving many to wander aimlessly through a morass of traditional, digital, and social media in their quest to discover new music and even listen to what they already know. As Mashable noted earlier this week, music is a breed of its own, where cookie-like tracking tools simply don’t exist yet and artists don’t know their true reach and can’t discover comprehensive insights into their listeners.

To that end, the website offers several modern marketing concepts to see how they apply – or don’t – to the ever-changing music business:

  • Marketing technology. Deeper insight into user behavior is crucial for an industry that bears the brunt of every new disruptive technology.
  • Real-time reporting. Radio is a music research black hole. Activity on Pandora comprises a huge and growing percentage of listening in the United States, the world’s biggest music market. However, like offline radio, there’s no real-time or detailed tracking of  music consumption.
  • Building relationships on social. Marketing’s key theme also applies to the music industry: success is all about having a relationship with the consumer (in this case, the listener). As Taylor Swift pointed out in her recent Wall Street Journal op-ed, artists are starting to get record deals because they have fans, not the other way around.

As Mashable says, “The missing links that’ll ultimately power the business of the music industry will fall into place with innovation. Every individual stars in their own movie complete with the soundtrack to their life. By leveraging the innovation seen in digital marketing, artists can understand in which scenes their music is featured.”

 

A publication of Bunzel Media Resources © 2014