jerryking + royalties   10

How Spotify’s algorithms are ruining music
May 2, 2019 | Financial Times | Michael Hann.

(1) FINAL DAYS OF EMI, By Eamonn Forde, Omnibus, RRP£20, 320 pages
(2) SPOTIFY TEARDOWN, By Maria Eriksson, Rasmus Fleischer, Anna Johansson, Pelle Snickars and Patrick Vonderau, The MIT Press, RRP£14.99, 288 pages
(3) WAYS OF HEARING, By Damon Krukowski, The MIT Press, RRP£14.99, 136 pages

In April, the IFPI — the global body of the recording industry — released its latest annual Global Music Report. For the fourth consecutive year, revenues were up, to a total of $19.1bn, from a low of $14.3bn in 2014. Nearly half those revenues came from music streaming, driven by a 33 per cent rise in paid subscriptions to services such as Spotify, Apple Music and Tidal...... It is worth remembering that 20 years ago, the IFPI reported global music revenues of $38.6bn. Today’s “booming” recording industry is less than half the size it was at the turn of the century.....The nadir for the recording industry coincided with the first shoots of its regrowth. ....In August 2007, the British record company EMI — the fourth of the majors, alongside Universal, Sony and Warner — was bought by private equity firm Terra Firma (Guy Hands, the fund’s founder and chairman) for $4.7bn; a year later, a Swedish company called Spotify took its music streaming service public. The former was, perhaps, the last gasp of the old way of doing things — less than four years after buying EMI, Terra Firma was unable to meet its debts, and ceded control of the company to its main lender, Citigroup. Before 2011 was out, the process of breaking up EMI had begun...EMI’s demise was foreshadowed before Hands arrived, with a blaze of hubris in the early 2000s. Forde, a longtime observer and chronicler of the music business recounts the “disastrous and expensive” signings of that era......Handspreached the need to use data when signing artists, not just the “golden ears” of talent scouts; data are now a key part of the talent-spotting process.

* to qualify as having been listened to on Spotify, a song has to have been played for 30 seconds.
* hit songs have become increasingly predictable, offering up all their pleasures in the opening half-minute. Their makers dare not risk scaring off listeners.
* for all the money that the streaming services have generated for the music industry, very little of it flows back to any musicians except the select few who dominate the streaming statistics,

.......On Spotify, music consumption has been reorganised around “behaviours, feelings and moods” channelled through curated playlists and motivational messages......The data Spotify collects enable the industry to work out who its market is, where it lives, what else they like, how often they listen to music — almost anything, really. It’s the greatest assemblage of information about music listeners in history, and it has profoundly altered the industry: it has made Spotify music’s kingmaker......when an artist travels abroad to promote a new album, the meeting with the local Spotify office is more important than the TV appearances or the newspaper interviews. ...Spotify enables artists to plan their band’s set lists so they can play the most popular song in any given city.............So what? What does it matter if one model of music distribution has been replaced by another.....It matters because Spotify has profoundly changed the listener’s relationship with music....Older musicians often wax about how, when you had to buy your own music as a kid, you listened to it until you liked it, because you wouldn’t be able to afford a new album for another month. Now you simply skip to the next one, and probably don’t give it your full attention. Without ownership, there’s no incentive to study...........Faced with the impossibly wide choice of Spotify, it becomes easier to return to old favourites — easier than when flicking through your vinyl or CDs, because the act of looking through your own music makes things you had not thought of in years leap out at you. Spotify actually makes people into more conservative listeners, a process aided by its algorithms, which steer you towards music similar to your most frequent listening.....The theme of Krukowski’s book is that the changes in the way the music industry works have been about controlling and eliminating excess noise. That’s in a literal sense and in a metaphorical one, too. Streaming has stripped music of context, pared it back to being just about the song and the moment....but noise is the context of life. Without noise, the signal becomes meaningless......The world of the old EMI was one of both signal and noise; where myths and legends could be created: The Beatles! Queen! The Beach Boys! Pink Floyd! It was never all about the signal. The world of Spotify is one of signal only, and if you don’t appreciate that signal within the first 30 seconds of the song...all may be lost
abundance  algorithms  Apple_Music  books  book_reviews  business_models  curation  cultural_transmission  data  decontextualization  EMI  gatekeepers  Guy_Hands  hits  indoctrination  iTunes  legacy_artists  music  music_catalogues  music_labels  music_industry  music_publishing  noise  piracy  platforms  playlists  royalties  ruination  securitization  signals  songs  Spotify  streaming  subscriptions  talent  talent_scouting  talent_spotting  Terra_Firma  Tidal  transformational 
may 2019 by jerryking
Apple and Qualcomm’s Billion-Dollar Staredown
April 13, 2019 | WSJ | By Tripp Mickle and Asa Fitch.

Apple has called Qualcomm a monopoly and said Mr. Mollenkopf has lied about settlement talks between the companies. Qualcomm has accused Apple of deceiving regulators around the world and stealing software to help a rival chip maker.

For two years, the companies have bickered over the royalties Apple pays to Qualcomm for its patents. Discord between the CEOs, who bring different management styles and principles to the table, has deepened the divide. They have dug into their positions as the dispute has escalated....Apple’s patent lawsuit against Qualcomm is set to go to trial—with both CEOs expected to testify in a case where billions of dollars are at stake. .....Cook’s view that Qualcomm’s licensing practices—taking a 5% share of most of the sales price of an iPhone—was just plain wrong, allowing the chip maker to profit off Apple innovations in display and camera technology.....
5G  Apple  CEOs  conflict_resolution  disputes  Intel  licensing  litigation  mobile_phones  patents  Qualcomm  royalties  semiconductors  smartphones  Steve_Mollenkopf  Tim_Cook 
april 2019 by jerryking
The death of cultural transmission
April 3, 2019 | FT Alphaville | By Jamie Powell.

music publishing = the business of licensing songs for films, television and advertising.

Valuing [a record label's] music catalogue is... crucial for anyone looking to bid for a stake in the business.

Despite the prominence of new music, established artists are still fundamental to recorded music's success. .......So let's think about these golden oldies as assets. Assets whose appeal has, arguably, only been heightened by the advent of streaming which, with its recurring revenues and growing audience, has made recurring payments from established acts even more bond-like in their cash flow consistency.
But like fixed-income assets with long durations, these cash flows are also sensitive to the smallest assumptions about their future viability. Assumptions which are not as rock solid as some investors might imagine. Let's use The Beatles as a point of reference here, as "The White Album" was UMG's fourth best-selling album last year. (If you're asking “why The Beatles?” Well, Alphaville likes The Beatles, sure. The Fab Four could easily be replaced by its other legacy acts, such as Queen and Nirvana).

But the problem for a prospective buyer is why we're a fan. To put it simply: we had no choice. We were indoctrinated.

On a long car journeys to coastal summer holidays, or at home on a knackered JVC stereo, we, like many of our friends, were limited to a dozen or so records (jk: finite resources). One of which, inevitably, would be some form of John, Paul, George and Ringo (and George).

Call it the cultural transmission effect. Music would be passed on generation to generation, amplified by the relative scarcity, physical space constraints and high prices of recorded media.

This provided a boon for the major labels as it not only meant lower marketing costs but reissues, limited editions, and remasters became an easily repeatable trick, as younger generations grew up to become consumers themselves.......The Beatles, Rolling Stones and Bob Marley are after all, great artists. Their music will live on. But that's not the question for a perspective investor.

The question is: to what degree will the royalties from these artists continue to flow? Assume Sir Paul and Sir Ringo will continue to grow exponentially richer off the back of streaming, and perhaps the quoted multiples don't look quite so mad. In this age it's hard to find assets which both grow, and have semi-predictable cash flows.

But if the next generation doesn't hold the same affinity to the artists which defined the first fifty years of the pop era, where does that leave the labels' back catalogues? May we suggest: in a tougher spot than most imagine.
Apple_Music  artists  assets  Beatles  biopics  bonds  cultural_transmission  digital_strategies  finance  finite_resources  golden_oldies  hard_to_find  indoctrination  legacy_artists  music  music_catalogues  music_labels  music_publishing  platforms  Rollingstones  royalties  Spotify  strategic_buyers  streaming  superstars  U2  UMG  valuations 
april 2019 by jerryking
The music industry dances to the beat of TV revenue - The Globe and Mail
September 4, 2017 | Globe and Mail | by JOSH O’KANE.

Toronto's Barenaked Ladies first blew up in the 1990s, when CDs were king. But music sales have since collapsed and streaming services such as Spotify have replaced some, but not nearly all, of that revenue. Bands such as Mr. Robertson's have made up for lost sales in large part by touring. As the fall TV season begins – including The Big Bang Theory's season premiere later this month – getting music on a TV show, film or commercial is becoming an increasingly enticing revenue stream for musicians and the businesses that back them.

As streaming-video platforms keep adding new, original shows and films on top of traditional broadcast channels, the opportunities to license music increase as well. The International Federation of the Phonographic Industry, the recorded music industry's global lobby group, reports that in 2016 Canada brought in $7.8-million (U.S.) in "synchronization" revenue for artists and labels from using music in TV, film, ads and video games.

While that represents less than 1 per cent of total revenue, it's a 32-per-cent increase over the previous year, signalling growing attention for recordings' revenue stream. Meanwhile, SOCAN – which collects royalties for songwriters and music publishers in Canada – says more than a third of all of its royalty revenue comes from TV sources.
films  licensing  music  musicians  music_industry  music_publishing  royalties  streaming  songwriters  television 
september 2017 by jerryking
Rdio aims for streaming music’s sweet spot
As the world’s streaming music companies grapple for market share in a nascent industry, Rdio Inc. is betting that less means more, launching a new low-cost option targeted at casual music…
Spotify  royalties  Rdio  music_industry 
june 2015 by jerryking
Ben Yagoda and Gary Rosen: Tuning Music Royalties to the Times
April 5, 2015 | WSJ | By BEN YAGODA And GARY A. ROSEN

Performers can go on tour and sell merch. Songwriters in the age of Spotify and Pandora are out of luck.

For some time, performers a notch below Beyoncé and Taylor Swift have complained about the change in music delivery from CDs to downloads to streaming, today’s dominant system, as the progression has chipped away at their already-modest royalties. These gripes are legitimate, but even worse off is the non-performing songwriter, who can’t go on the road and sell signed CDs and merch, and who takes home significantly lower royalties........The entire U.S. system of music royalties is confusing, contradictory and inequitable, a monument to more than 100 years of haggling among creators, purveyors and users. To call it Byzantine maligns that great empire.

For one, a musical composition (“the publishing” in music-industry parlance) and its recording (“the master”) receive separate copyrights, with separate licensing systems. There are dramatically different rate-setting mechanisms: Broadcast radio pays royalties for the composition, but nothing for the recording. Digital media—Pandora and satellite radio, for instance—pay for both, but nobody pays for recordings made before 1972, which are not protected under federal copyright law. (They may soon carry a royalty in certain states, thanks to lawsuits filed by former members of the Turtles.) Hardly any music licenses are negotiated in the free market.
copyright  digital_media  music  music_industry  musical_performances  Pandora  royalties  Spotify  songwriters  streaming 
april 2015 by jerryking

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