For months we’ve been subjected to speculation that Spotify, the music streaming service that has gained a massive following in Europe, would finally launch in the United States. The service, which is currently available in France, Finland, the Netherlands, Norway, Spain, Sweden, and the UK has steadily been making moves in the US, and might see a launch date before the end of the year. Unlike online radio and music streaming service Pandora, Spotify allows you to listen to any track you like, any time you like. Their premium service works on your mobile phone, and has an offline mode for playlists. The offline mode syncs your playlists to your computer or mobile phone, so you can listen to them without an Internet connection.
Last week Spotify signed an American distribution deal with Universal Music Group, the world’s largest music label. The service already has agreements with Sony and EMI Music Group and is now just waiting to sign a similar agreement with Warner Music Group. Many believe the service won’t go live without it, since it would offer a hole in the music catalog. Earlier this week they secured funding totaling $100 million based on a $1 billion valuation. The addition funding could further prove that Spotify’s launch in the U.S. is approaching. Spotify’s biggest obstacle might be the industry itself. They need to entice users to stream music rather than pirate it while at the same time not discourage them from buying it or becoming paying subscribers.
The question that remains is weather Spotify will be successful once it reaches the U.S. Personally I can almost guarantee that it will get users to try their free trial, after all – it lasts 6 months. How many other companies do you know that are willing to let you try their service for half of the year at no cost? It definitely has to the right idea at getting your foot in the door. Once you’ve used something for so long, it’s kind of hard to go without it, and the $10 monthly fee by not seem as bad. Personally I can’t wait – so Spotify – hurry up and get here.
References
Spotify sings Universal Music, may get to U.S. after all.
Spotify Closes New $100 Million Funding Round, U.S. Launch Nears
Can Spotify and Hulu Move Forward Without Killing The Businesses They Rely On?
Spotify.com
6.18.2011
6.04.2011
Parental Advisory Warnings - Could They Be Back?
Parental Advisory Stickers. We’ve all seen them. Those iconic little black and white stickers stamped on the cover of ‘explicit’ music, film and television. They were originally meant to inform parents of minors that the music they were purchasing for their children had ‘explicit content’ and was not suitable for children of all ages. Yet despite a warning label on a CD cover, teenaged consumers have made up the core audience for one of the most controversial and arguably most successful rap stars to emerge within the 21st century, Eminem, making one wonder what good the labels do in the first place.
On the other side of the world however, many believe they are still relevant and important. Now, the UK is taking steps to bring the parental advisory warnings to new medium – online music videos. In an age where YouTube is one of the most visited sites on the Internet, the UK government and the British Recorded Music Industry (BPI) are set to introduce a new set of guidelines that will affect music in the UK.
Today YouTube, Napster, Spotify, and Vevo do not have a uniform parental guidance system although Apple’s iTunes does. The iTunes online store runs a warning system on its audio and video content. Yet following recent concern about the amount of risqué music content that is too easily available to children online the BPI is going to begin introducing parental warning logos before songs and music videos on those services that currently do not employ a parental guidance system.
Although not yet a standard in the US, it’s only a matter of time before a similar stance gets adopted in the states. However one has to wonder how playing a warning at the beginning of a video or a song is going to have any affect if there is not a responsible adult around to see it appear. After all, at some point those stickers on CDs became an indication of which records we wanted to buy – the one that had them.
References
Parental Warnings to be Introduced for Online Music
On the other side of the world however, many believe they are still relevant and important. Now, the UK is taking steps to bring the parental advisory warnings to new medium – online music videos. In an age where YouTube is one of the most visited sites on the Internet, the UK government and the British Recorded Music Industry (BPI) are set to introduce a new set of guidelines that will affect music in the UK.
Today YouTube, Napster, Spotify, and Vevo do not have a uniform parental guidance system although Apple’s iTunes does. The iTunes online store runs a warning system on its audio and video content. Yet following recent concern about the amount of risqué music content that is too easily available to children online the BPI is going to begin introducing parental warning logos before songs and music videos on those services that currently do not employ a parental guidance system.
Although not yet a standard in the US, it’s only a matter of time before a similar stance gets adopted in the states. However one has to wonder how playing a warning at the beginning of a video or a song is going to have any affect if there is not a responsible adult around to see it appear. After all, at some point those stickers on CDs became an indication of which records we wanted to buy – the one that had them.
References
Parental Warnings to be Introduced for Online Music
5.22.2011
What About Negotiations?
Behind every successful business there are plenty of negotiations that had to be sorted out in the process. In fact, we participate in negotiations more than we realize, and the more we focus on our negotiation skills, the better we become at them. During the past week I had the opportunity to speak with Jonathan Martin, Co-Founder and Owner of a music-based website that helps independent artists monetize their music, as well as allow fans to discover and share music. Jonathan has previously started three separate music business companies and has worked with artists in management positions. During the past 5 years he has been a party to several negotiations and he was glad to share some suggestions with me.
I began by asking Jonathan about objective criteria, and how he had incorporated it in past negotiations. “I’m a Finance guy, numbers are my thing, so when I’m going into a negotiation I always come prepared with financial statements, analytic projections, etc. But it’s not enough to have the factual information. It’s important that when you go into negotiations with your material that you also know how to use it and it present it. In my case numbers don’t explain themselves all the time. I need to be able to build a case around these numbers that supports what I am essentially arguing in benefit of.” Jonathan also pointed out that if you wanted the ‘objective criteria’ to be taken serious it was also important to willingly listen to the other party when they presented their material, as well as initiating an interest in their views of the material.
During negotiations, emotions many times run rampant, so I decided to ask Jonathan which of Shapiro’s five core concerns that stimulate emotion (appreciation, affiliation, autonomy, status, or role) did he find more important. I can’t say I was surprised by his answer because I agree – affiliation. “Ideally, in a smooth negotiation you want to work together, not against each other. It makes the process of working together easier. Personally, I’ve found that during a negotiation if we’ve been able to build a personal connection either before hand, or during the process, I’m more open-minded about new ideas and about changing my mind. Versus if I feel that you are being insincere I’m more resistant about changing my mind.” While I had never thought about it, in that context I found myself in agreement. When there’s a connection between you and the other party, I feel that the parties are more likely to cooperate with each other rather than ‘stand their ground’.
To end our discussion I asked Jonathan if there was ever a time during a negotiation in which he felt the opposing party was ‘dirty’, and he shared this story with me. “During a negotiation with an investor for my last start-up initiative I found myself being seated in a chair that was as low to the ground as possible, with a stiff back. Being 6ft3 this was obviously an awkward situation. I knew if I said nothing and continued on with the negotiation that it would affect my position because I was going to be unable to concentrate throughout the meeting. Instead of ignoring the situation, I decided to excuse myself and adjust the chair.” So did the investor respond in any way to that action? “He simply sat back and smiled.”
I began by asking Jonathan about objective criteria, and how he had incorporated it in past negotiations. “I’m a Finance guy, numbers are my thing, so when I’m going into a negotiation I always come prepared with financial statements, analytic projections, etc. But it’s not enough to have the factual information. It’s important that when you go into negotiations with your material that you also know how to use it and it present it. In my case numbers don’t explain themselves all the time. I need to be able to build a case around these numbers that supports what I am essentially arguing in benefit of.” Jonathan also pointed out that if you wanted the ‘objective criteria’ to be taken serious it was also important to willingly listen to the other party when they presented their material, as well as initiating an interest in their views of the material.
During negotiations, emotions many times run rampant, so I decided to ask Jonathan which of Shapiro’s five core concerns that stimulate emotion (appreciation, affiliation, autonomy, status, or role) did he find more important. I can’t say I was surprised by his answer because I agree – affiliation. “Ideally, in a smooth negotiation you want to work together, not against each other. It makes the process of working together easier. Personally, I’ve found that during a negotiation if we’ve been able to build a personal connection either before hand, or during the process, I’m more open-minded about new ideas and about changing my mind. Versus if I feel that you are being insincere I’m more resistant about changing my mind.” While I had never thought about it, in that context I found myself in agreement. When there’s a connection between you and the other party, I feel that the parties are more likely to cooperate with each other rather than ‘stand their ground’.
To end our discussion I asked Jonathan if there was ever a time during a negotiation in which he felt the opposing party was ‘dirty’, and he shared this story with me. “During a negotiation with an investor for my last start-up initiative I found myself being seated in a chair that was as low to the ground as possible, with a stiff back. Being 6ft3 this was obviously an awkward situation. I knew if I said nothing and continued on with the negotiation that it would affect my position because I was going to be unable to concentrate throughout the meeting. Instead of ignoring the situation, I decided to excuse myself and adjust the chair.” So did the investor respond in any way to that action? “He simply sat back and smiled.”
4.14.2011
Record Store Day
Do you think all brick and motor music retail stores are dead? Think again. While mass-music retailers might have gone the way of the dinosaur in recent years, independent record stores are thriving, in part due to the increase in vinyl sales. While the music industry has fallen into a slump with overall sales dropping by 13% in 2010 both the Nielsen Company and Billboard report that vinyl has seen a 14% surge since 2009 and that’s good news for independent record stores.
Saturday marks the fourth annual Record Store Day. What started as a celebration of in-person commerce with 250 participating stores in the United States in 2008 has now grown to a national event celebrating independent record stores with more than 1500 participants. Michael Kurtz, co-founder of Record Store Day as well as president of the independent music store coalition Music Monitor Network, says that Record Store Day “started as a response to all the negative media coverage of record stores closing”. The first official Record Store Day was kicked off in San Francisco on April 19, 2008 by Metallica and since then has been celebrated on the third Saturday of April.
Of course, a big part of Record Store Day is the music – because where would these retailers be without them. Every year Record Store Day offers special editions not sold online or at stores such as Best Buy. This year’s special releases include a covers album by the Foo Fighters, two unreleased soundcheck jams from Phish, Rolling Stones’ “Brown Shugar” 7-inch and a re-release of the 1992 Nirvana EP “Hormoaning”. However the quantities are limited and there’s no guarantee of finding them at all independents either. For hard-core enthusiasts' that’s half the fun, traveling from store to store, taking in events and looking for that special release they’ve been hoping to get their hands on. While not all stores will offer the one-day specials they will celebrate by discounting current merchandise, offering giveaways and even live performances.
Sweat Records in Miami Florida is going all out by throwing a block party – doors open at 10am for Record Store Day exclusives followed by DJ sets at noon and then live performances by indie favorites ArtOfficial, Deaf Poets, Juan Basshead, Lil Daggers and Teepee. The best part for music lovers – the event is free.
So what does your local independent record store do to celebrate the day? Even if it’s nothing extravagant, remember that independent record stores always hide some true gems inside, and the people who work there are always willing to suggest some new music for you.
References
The Record Stores Are All Right
Record Store Day Celebrates the Independent Retailer
Independent Record Stores Gear Up For Anything Goes Record Store Day
Sweatstock and Record Store Day at Sweat Records
Saturday marks the fourth annual Record Store Day. What started as a celebration of in-person commerce with 250 participating stores in the United States in 2008 has now grown to a national event celebrating independent record stores with more than 1500 participants. Michael Kurtz, co-founder of Record Store Day as well as president of the independent music store coalition Music Monitor Network, says that Record Store Day “started as a response to all the negative media coverage of record stores closing”. The first official Record Store Day was kicked off in San Francisco on April 19, 2008 by Metallica and since then has been celebrated on the third Saturday of April.
Of course, a big part of Record Store Day is the music – because where would these retailers be without them. Every year Record Store Day offers special editions not sold online or at stores such as Best Buy. This year’s special releases include a covers album by the Foo Fighters, two unreleased soundcheck jams from Phish, Rolling Stones’ “Brown Shugar” 7-inch and a re-release of the 1992 Nirvana EP “Hormoaning”. However the quantities are limited and there’s no guarantee of finding them at all independents either. For hard-core enthusiasts' that’s half the fun, traveling from store to store, taking in events and looking for that special release they’ve been hoping to get their hands on. While not all stores will offer the one-day specials they will celebrate by discounting current merchandise, offering giveaways and even live performances.
Sweat Records in Miami Florida is going all out by throwing a block party – doors open at 10am for Record Store Day exclusives followed by DJ sets at noon and then live performances by indie favorites ArtOfficial, Deaf Poets, Juan Basshead, Lil Daggers and Teepee. The best part for music lovers – the event is free.
So what does your local independent record store do to celebrate the day? Even if it’s nothing extravagant, remember that independent record stores always hide some true gems inside, and the people who work there are always willing to suggest some new music for you.
References
The Record Stores Are All Right
Record Store Day Celebrates the Independent Retailer
Independent Record Stores Gear Up For Anything Goes Record Store Day
Sweatstock and Record Store Day at Sweat Records
3.31.2011
Eminem Victory - Industry Changing? Only Time Will Tell.
Within the next 60 days a lawsuit that has been circulating for a few years will finally draw to a close, but only after the Supreme Court refused to hear an appeal. The dispute at the center is based on the rate of royalties Marshall Mathers (Eminem) and his producers are entitled to for the sale of online music. The original producers who discovered Eminem (F.B.T. Productions) sued Universal Music Group (UMG) after an audit of accounting records that FBT and Eminem conducted back in 2005. The question at the center of the debate – is a song sold online considered a sale or a license?
Sale or License? Is it really such a big deal? You bet it is – for contracts that predated the digital era; they spelled out smaller royalty payments for music sold in physical form than music licensed. Eminem’s contract for example stipulates that he receive 50% of the royalties for a license, but only 12% for a sale. A federal jury originally ruled in favor of Universal in 2009, but that decision was overturned by the 9th Circuit Court of Appeals in San Francisco last year. Refusal to be heard by the Supreme Court means the decision by the Appeals court stands. In the lawsuit FBT argued that a record companies’ arrangement with digital retailers resembled much more of a license than it did a sale. The appeals court agreed and ruled that downloads from iTunes weren’t purchased, but rather ‘licensed’ to the buyer, stating that, “iTunes downloads (even the DRM-free variety) are encumbered by enough restrictions that they can’t be considered sales at all”.
So what does this mean for the industry? Currently not much. UMG issued a statement in regards to the matter. “The case has always been about one agreement with very unique language. As it has been made clear during this case, the ruling has no bearing on any other recording agreement and does not create any legal precedent”. While that might be true, record labels might find themselves having a harder time tying to renegotiate older contracts, as artists will demand higher royalties or might find themselves fighting similar cases in court. Industry observer’s think that as many as 90% of all contracts signed before 2000 predated the digital era and therefore didn’t incorporate digital downloads as ‘sales’. Only time will tell if this case will have a dramatic impact on the industry. In the meantime, both parties are due back in court within 60 days to discuss damages.
It’s important to note that Eminem himself wasn’t a party to the suit, but the way his contract with FBT was written he stands to earn millions from it.
For those of you interested in reading the original court opinion from the 9th Circuit Court of Appeals you can do so here.
References
Federal Court Sides With Eminem in Royalty Dispute; Record Business Does Not Impode
Eminem Lawsuit May Raise Pay for Older Artists
U.S. Supreme Court Denies Appeal on Eminem’s Music Royalty Dispute
Eminem’s Court Case May Set Music Standard
Sale or License? Is it really such a big deal? You bet it is – for contracts that predated the digital era; they spelled out smaller royalty payments for music sold in physical form than music licensed. Eminem’s contract for example stipulates that he receive 50% of the royalties for a license, but only 12% for a sale. A federal jury originally ruled in favor of Universal in 2009, but that decision was overturned by the 9th Circuit Court of Appeals in San Francisco last year. Refusal to be heard by the Supreme Court means the decision by the Appeals court stands. In the lawsuit FBT argued that a record companies’ arrangement with digital retailers resembled much more of a license than it did a sale. The appeals court agreed and ruled that downloads from iTunes weren’t purchased, but rather ‘licensed’ to the buyer, stating that, “iTunes downloads (even the DRM-free variety) are encumbered by enough restrictions that they can’t be considered sales at all”.
So what does this mean for the industry? Currently not much. UMG issued a statement in regards to the matter. “The case has always been about one agreement with very unique language. As it has been made clear during this case, the ruling has no bearing on any other recording agreement and does not create any legal precedent”. While that might be true, record labels might find themselves having a harder time tying to renegotiate older contracts, as artists will demand higher royalties or might find themselves fighting similar cases in court. Industry observer’s think that as many as 90% of all contracts signed before 2000 predated the digital era and therefore didn’t incorporate digital downloads as ‘sales’. Only time will tell if this case will have a dramatic impact on the industry. In the meantime, both parties are due back in court within 60 days to discuss damages.
It’s important to note that Eminem himself wasn’t a party to the suit, but the way his contract with FBT was written he stands to earn millions from it.
For those of you interested in reading the original court opinion from the 9th Circuit Court of Appeals you can do so here.
References
Federal Court Sides With Eminem in Royalty Dispute; Record Business Does Not Impode
Eminem Lawsuit May Raise Pay for Older Artists
U.S. Supreme Court Denies Appeal on Eminem’s Music Royalty Dispute
Eminem’s Court Case May Set Music Standard
3.23.2011
National Music Publishers Association & Net Neutrality
There are over 86,000 registered trade and professional associations – and for a young professional it is important to network and perhaps join, if not follow, the associations that work on your topic of interest. For me, my passion is in licensing and royalties – the backbone of the music publishing industry, and there’s a trade associate for that.
The National Music Publisher’s Association (NMPA) is the leading trade association in the United States for music publishers. According to the association’s mission statement, “the goal of NMPA is to protect its members’ property rights on the legislative, litigation, and regulatory fronts”. The NMPA also owns and controls the Harry Fox Agency, which is the largest mechanical rights collecting society in the United States.
According to the most recent newsletter sent out by NMPA, one of the initiatives that NMPA is working with is that for ‘net neutrality’. Net Neutrality is the principle that all Internet traffic should be treated equally and that all Internet users should be able to use the Internet without any restrictions by the Internet Service Providers (ISP). The NMPA filed reply comments that stressed that the Federal Communications Commission (FCC) should make it clear that ISPs can use management practices in order to address abuse that is occurring on their networks. They went on to say that ISPs must have the ability to create a warning system and penalties for those violators in order to prevent unlawful activity. The NMPA also believes that any forthcoming regulations should not prohibit the development of new technologies to fight digital theft. The NMPA signed on to a letter written RIAA on what Net Neutrality as it stands today was doing – “The current legal and regulatory regime is not working for America’s creators. Our businesses are being undermined, as are the dreams and careers of songwriters, artists, musicians, studio technicians, and other professionals. That’s why we look forward to working with you . . . to make the distinction between lawful and unlawful relevant in the marketplace…”.
I think it’s important that NMPA has voiced its concerns on this issue. ISP’s should be able to take measures in order to discourage unlawful activity such as copyright infringement. I think it is important that the NMPA align itself with different initiatives and legal matters that affect music publishers. Copyright infringement not only affects songwriters and musicians, but publishers as well because it dwindles down the royalties that publishers are received as well as the amount of licensing opportunities that present itself.
So where do you stand on net neutrality today? Should there be some amendments to the principle? I think so. And in case you’re wondering what kicked off this whole net neutrality debate – well Comcast was accused of blocking BitTorrent, a site that holds a plethora of pirated content, back in 2007.
3.09.2011
TED - Robert Gupta: Music Is Medicine, Music Is Sanity
Can music really be sanity? Robert Gupta believes so as he gives his presentation on TED.
Robert Gupta begins his presentation by telling a story that many are already aware of - that of Nathaniel Anthony Ayers, the Julliard trained basset who's career was cut short due to a battle with schizophrenia, and who's story was portrayed on the big screen in the movie 'The Soloist'. Robert Gupta himself had a chance to meet Nathaniel at Walt Disney concert hall. Shortly after meeting him, he heard word that Nathaniel wanted a violin lesson with him.
Gupta describes the day in which Nathaniel and himself started their first lesson, and the way Nathaniel was acting that day in a way that allows you to visualize the event in your mind. On that day, Gupta describes Nathaniel as having a "manic, glint in his eyes, he was lost". All the while Nathaniel talked about "invisible demons, and smoke, and how someone was poisoning him in his sleep". Gupta admitted that he was scared, yet not for himself. He explained how he was more afraid that if he began speaking to Nathaniel about scales and arpeggios he might ruin Nathaniel's relationship with the violin due to this 'episode'. How do you overcome such an obstacle, during what is supposed to be a violin lesson? The wrong step could send Nathaniel into a raging episode that could cause him to disappear for days, as he was prone to do. Instead of saying a word, Gupta decided to simply pick up the violin and begin playing. Gupta described how as he played, he could see a change in Nathaniel's eyes, how the rage disappeared and transformed into "understanding, curiosity, and grace". Soon afterwards they began talking about music, both with extreme passion. Gupta explained how Nathaniel transformed, almost as if there was two different people in front of him. Nathaniel went from "the paranoid, disturbed man" that had originally stepped in front of him, to a "charming, brilliant Julliard musician".
Gupta's passion in telling his story inspires everyone to believe that music really is medicine. To many people music provides a busy mind with calm. He strives to deliver his message that music gives you an escape form your reality, that it is the reason we make music in the first place. The reality of the expression created is what moves everyone and inspires him or her. He ends his presentation by stating that Nathaniel reminds him why he became a musician in the first place. That escape from our problems is the 'sanity' to which Gupta refers too.
So can music really be mental medicine? After listening to Robert Gupta's passionate encounter with Nathaniel Ayers, I believe it truly can.
If you would like to see the presentation in it's entirety, here's the video:
Robert Gupta begins his presentation by telling a story that many are already aware of - that of Nathaniel Anthony Ayers, the Julliard trained basset who's career was cut short due to a battle with schizophrenia, and who's story was portrayed on the big screen in the movie 'The Soloist'. Robert Gupta himself had a chance to meet Nathaniel at Walt Disney concert hall. Shortly after meeting him, he heard word that Nathaniel wanted a violin lesson with him.
Gupta describes the day in which Nathaniel and himself started their first lesson, and the way Nathaniel was acting that day in a way that allows you to visualize the event in your mind. On that day, Gupta describes Nathaniel as having a "manic, glint in his eyes, he was lost". All the while Nathaniel talked about "invisible demons, and smoke, and how someone was poisoning him in his sleep". Gupta admitted that he was scared, yet not for himself. He explained how he was more afraid that if he began speaking to Nathaniel about scales and arpeggios he might ruin Nathaniel's relationship with the violin due to this 'episode'. How do you overcome such an obstacle, during what is supposed to be a violin lesson? The wrong step could send Nathaniel into a raging episode that could cause him to disappear for days, as he was prone to do. Instead of saying a word, Gupta decided to simply pick up the violin and begin playing. Gupta described how as he played, he could see a change in Nathaniel's eyes, how the rage disappeared and transformed into "understanding, curiosity, and grace". Soon afterwards they began talking about music, both with extreme passion. Gupta explained how Nathaniel transformed, almost as if there was two different people in front of him. Nathaniel went from "the paranoid, disturbed man" that had originally stepped in front of him, to a "charming, brilliant Julliard musician".
Gupta's passion in telling his story inspires everyone to believe that music really is medicine. To many people music provides a busy mind with calm. He strives to deliver his message that music gives you an escape form your reality, that it is the reason we make music in the first place. The reality of the expression created is what moves everyone and inspires him or her. He ends his presentation by stating that Nathaniel reminds him why he became a musician in the first place. That escape from our problems is the 'sanity' to which Gupta refers too.
So can music really be mental medicine? After listening to Robert Gupta's passionate encounter with Nathaniel Ayers, I believe it truly can.
If you would like to see the presentation in it's entirety, here's the video:
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