« TechStuff

The Chaos of the Music Industry

2022-04-25 | 🔗

In a continuation of last week's episode about tech and the music biz, we look at how different media had a huge impact and how digital downloads and streaming would change everything. 

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
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the welcome to tech stuff, a production from I heart, radio, the hey there and welcome to tech stuff. I'm your host Jonathan Strickland, I'm an executive producer with I heart radio and how the Tech Arya you're going to continue. What I started last Monday, which was an episode about music tech and business and boy howdy. Does this get complicated and before we jump right into streaming, which is kind of where I left off in the last episode. there actually are a few things that I should cover that I skipped over in that last episode about how music technology and business are all intertwined. They all have a massive effect on each other. I meant the concept of royalties molest last episode, that is its it's a fee paid to a composer, are copyright owner for the use, or
the choice of a work. So if I at a song. That's included on an album and presuming I've got. the contract, the guarantees me a certain amount of royalties, a percentage I am owed a bit of money for every sale of that album might actually be a very tiny amount of money and, first, if our, if I was paid in advance, that events must be paid off before I start getting royalties, but eventually I do get that cash. But what about public performances of mine song like what about. If my song is played on the radio or if its blade the sound system of a restaurant or a bar or theatre, or something like that. Well, technically, I'm owed royalties for that as well. This is determined in the United States way back in nineteen o nine, when the copyright act was signed into law and in the the earliest days. It was up to the individual, composers and ip owners to reach out.
And collect royalties and licensing fees from the parties that were publicly performing the songs, and, as you can imagine, that's time consuming and difficult especially if you hear talk about like a single composer, reaching to every radio station that might be playing your work. That gets really tough, and keeping them on as to being able to get them to pay the real tvs, actually really the licensing fees so that they can legally play your work on their stuff there got no granted in the early days, radio, we are most about life performances anyway and not recorded once, but you get my my meaning so a nineteen fourteen, a whole bunch of composers and publishers led by Victor Herbert. Founded and organization. In the: U S called the american society of composers, authors and publishers, a k, a as cap S, see a
this organisation would perform the services of licensing music on behalf of its members and clear, royalties on behalf for those members. So in other words, if you if you belong to as cab. You didn't have to worry about doing this yourself, so joining the Group would give the publishers and composers and IP holders the benefit of not having to go off There are various public performance venues. Ascap would do it for them, so. If you ever hear about ASCAP fees, that's what it refers to it Just one of many organisations that performs this task as cap is not the only one. By any stretch of the imagination now ass time went on more groups like ASCAP, would form kept mainly focuses on America, the United States in particular. It does maintain offices in a couple of other countries as well, but really it primary The focus is on America. An american artists also as cap has
a pretty interesting history itself. I could produce full episode. just about as gap prior to nineteen? Forty ASCAP would demand a five percent royalty fee for broadcast performances of songs, so, in other words, whatever revenue, the brain, illustration was bringing an at that particular time. Five percent of that would go to the the the license holder because of that Beth in nineteen. Forty, the Non profit organization increase that feel up to a staggering fifteen percent. Now, let's They let you run a radio station so you're on the other side of this, your job is to figure out what music, you're gonna play in order to fill up air time and it happened to see that any song that's covered by ASCAP comes with a fifteen percent. El Tv for that at the time, the directly broadcasting that that song,
You probably know look at music that outside of ASCAP in that that case right, because it's such a high and a bunch of broadcasters d just that the broadcasters did the same thing that the composers had done: beckoned nineteen fourteen. They got to other and they created a different performing rights organization. This one was called broadcast music incorporated or be. Am I So you heard about Ass Khabar, be a my that's where this comes from now, upon the formation of be among the members of ASCAP saw a serious threat here, like those a clear that, though Two were covered by my were definite gonna get radio play and those or covered by ASCAP definitely were not because those higher fees so ASCAP, then readjusted their royalty demands all the way down to two point: eight percent royalty instead of fifteen and again there are tons of other performance rights organizations out there. You know one of them is
though, can association, that's out of Canada. There's boomer, be you may that of the Netherlands, but there are dozens of these am each country? Pretty much has its own and more than one in several cases, and they operate much do the same thing on behalf of their members. They licence music and they collect fees. And will come back to them in a bed because the way there work with music streaming services matters. It matters a lot and is one of those cases that we often hear about. Whenever a music streaming service is made an argument that the fees they pay out might be might lead to their destruction, Pandora has had that argument a couple of times. In fact, I Alice Cover, something that a twitter followers named John Weber. That pointed out last week. Now they pointed out at the changes in media formats from vinyl to eight track to Cosette seedy to mp3.
All, had an impact on consumers and the industry, I didn't really touch on that held. The actual changes in media had an end on how the industry made money and how artists got paid The reason I didn't go into it, was largely because it just gets, super duper complicated. But it's a valid thing to point out, so we're gonna try and cover a little bit of it. keeping in mind like I said this is really complex. Now a really obvious way that the creation of eight tracks and cassettes would have on the music industry was that for the first time recorded music became really portable survive records are great and they allow us to- listen to our favorite songs or Alban's when we're at home- or you know if there's like a jukeboxes, has vinyl albums in it or something like that? But it's not typically the cat the format that lends itself to portable listening, not that some
manufacturers. Didn't give it. The old college. Try there actually are a few different auto mounted phonograph type d, ICES, and in fact they it goes back decades. Whistler, offered a highway high five baggage on seven car models in the early sixties. The system required proprietary records that spun at sixteen and two thirds rpm. So you couldn't just your own vinyl, election on their, you had by all new records that were designed to rotate at this particular speed at sixteen and two thirds revolutions per Only Colombia records was making those albums by the way so the sis, wasn't a huge success. In fact, it was a flop, probably due to it both being really expensive, like it was a big upgrade to your hand. installed in your new vehicle.
And you are also really limited to just those special records that Colombia produce. So not only were you only limited to artists that were rubber, by Colombia. Is these subset of those artists? that Colombia actually made these special records for that you could even choose from so not great from a consumer standpoint. There a couple of other attempts to bring vinyl albums to cars, and in fact you can find examples of this. If you look around in fact sure there are cars out there on the market that still have some of these things installed, but they typically had really big drawbacks like even though that were designed in such a way where you wouldn't get skipping with a needle because he how you would think like if you're driving down, say a bumpy road, then than he's going to skip around on your record? That's then be terrible. Well, they found ways of making sure that the needle would stay connected to the the album. Even if you Donna Bumpy Road, however, that also meant the needle
But where are the album faster? So in others the more you listen to a particular record, the more you are wearing out and you would eventually have to replace it so This really made way for the birth of cartridge and Cosette technologies. Which would store music on magnetic tape rather than an grooves on a disk, so in the early, nineteenth sixties. You got the cassette tape, but the original cassette tape was terror. and so it really didn't take off like in the early six is the cassette tape tried to make a dent, but the audio while he was so bad that no one really wanted it. But then the m ex magnetic company partnered with RCA Records, the Learjet company and Ford Motor Company and collectively they designed the eight track tape, specifically for the purposes of having an inn. our audio system, where drivers bring along their own music and not to
and upon radio broadcasts, not this time really most cars only had an M radio FM had not made a lot of penetration yet and so, M, was pretty limited than this was considered to be a big big boost, and the technical she began to make its way into vehicles and nineteen sixty five and by the end of sixty five, there were more than sixty thousand Ford vehicles that had an eight track player installed in them now. Eight tracks Some big advantages over vinyl, particularly the systems that have been developed for cars for thing. The audio quality was really good, at least at first for another. They were far more portable than vinyl albums and an vinyl players, the exterior, he's cartridges were pretty durable. So you then have to worry about getting like a scratch on your cartridges than your music can escape, but these eight track also had some big downsides to one is that the eight track had a sort of never ending loop inside it, which was one we only so
couldn't rewind to listen to an earlier song. You had to go around the horn. You had to go through the entire length of the tape to come back around to the song. Again, I think in fact I knows several times in the past. I've thought about. Turning over. They tracked. That's not right! Now. It's that there's a never ending loop inside the tracks Vengefully le Loup comes back round again and your But to listen to the music? That's on that part of the loop, but you can't rewind! You can't go backwards you another big down downside to eight tracks, was that the capacity of your average eight track tape was less than what you could fit on a full vinyl album, so the edge I would not be able to help the all the songs that you would find on the full vinyl album version of whatever you are buying. So if you went out and bought the vinyl and the eight track of the same artists. Album they track would be missing. A few tracks typically
so the magnetic the eight track would degrade overtime so why? the common issue was that sound from one track would start to bleed into the next track can elect what happens when do you are listening to a radio station any start moving into another radio stations broadcast range and they start dough. with each other very disconcerting, also the tape, he's pretty flimsy this off it caught on stuff. It could easily break that was another big downside to they did have at home a track players which help the the medium quite a bit. So wasn't just in cars cars are where we gotta start, but there were at home versions of eight track layers to now. Eight tricks had a bit of a holiday in the nineteen seventies they kind of peaked at around nineteen. Seventy eight, but even at their peak they were still just
fraction of the market of vinyl, and then cassettes were catching up when eight tracks first arrived on the scene. set. Tape already had existed, like I mentioned, but was for lack of a better word total pants. They were just awful with terrible, sound quality, but that would change and, ultimately, the smaller form factor of the Cosette and the greater capacity that cassette tape had like they could hold more material. Thou wouldst. doom for the eight track. In the long run, where, even when a tracks rather beak, they were at about four billion dollars in revenue and Vienna, was still at around. Sixteen billion dollars is adjusted for inflation by the way, so. Vinyl was about four times more successful in terms of revenue, then eight tracks, Eight trucks would never overtake vinyl, but cassettes, wood and the Cosette was pretty well by the late seventies they overtook vinyl and nineteen. Eighty three and then cassettes hit their peak
as late as ninety. Ninety nine, at around twenty two billion dollars in revenue again we're talking about by revenue here, but the costs compact disc was a big thing and had we're taking cassettes way back and ninety two it was also when we start to see a decline in music. Sales at this would also be around the time when Napster was really active, and so the industry pretty much pounced on piracy as being the reason why music sales took a downturn and when we got all these massive and over enthusiastic, I think, is a good one overenthusiastic lawsuits against Napster itself and and specifically users of Napster really meant to terrify users. So there They wouldn't pirate music and it was insane some of the damages that they sought against various users of of the platforms
really painted the music industry in a bad light. At the time I we're gonna, take a quick when we come back. We will continue to talk about cassettes, and then we'll get into some of the complicated issues when it comes to try to figure out what these different, forms of media, what kind of impact they had on consumers and the music industry in general, but first, let's take this quick break. we are living in a fast changing world war. The best ways to succeed in it is to learn how to code tried Code Khatami today and see where coding can take you, more than fifty million people already know that code Codecademy is the best way to learn to code. That's because owed Khatami. Not only teaches you job ready coding skills, but also helps you build unique projects for your portfolio, earn certificates and even prep for technical interviews. Ya'll
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in that you could buy falling albums or you could buy Cosette singles, which would contain a few songs, but not a whole album, This gave customers some options. They could buy just the singles they liked or they could get the whole album. I dont know how popular Cosette singles were like. I have anecdotal things I could talk about, but that's worthless right. In my own experience, I almost never bought a single. I almost always bought an album instead of a single, but I did have a couple. And there were some downsides. Dick sets a big one being that the amazing album art of vinyl era was reduced to a tiny free should have its normal size other things that vinyl collectors The moon is that the vinyl started to have a downturn. It we started to see the end or the perceived end of an era of amazing cover art, but convenience made up for me the downsides for most people and now, when the compact disc started, to get popular, say a compact disc,
debuted all way back in the early eighties, but took a while to get popular ones that happen things changed a bit up. Yes, there are different cd formats out there like there are cd singles and things, but here in the states the full sized compact disc was pretty much the standard and in some markets the only format available. I am also not gonna go into stuff, like digital tape, because going through all the other, at least in the EU ass, the other minor media formats would just be overkill anyway, music industry, was really focused for on selling full albums at this point and not singles them in it. Wanted to get that hit song that you really liked you had the by the whole dang album. If you were determined to get cd quality that is in cities are an optical format, meaning seedy Blair's use lasers and the lasers reed little pits and lands that are on the surface of the sea. De LA by the way. That's just a
word. That means the span between pets and the pits and lands correspond with bits that is zeros and ones. And songs are represented as digital data, so unlike vinyl eight tracks and for tracks and Cosette Those are all analogue formats right. Those are not digital cds, art Digital. Now, I'm not gonna go into the long debate between Digital over does analogue, because I've thought about previous podcast and they would bushes episode into Billy Epic length, so we're gonna leave that debate behind. It's not really important for the purposes of our discussion. Anyway, so by ninety ninety nine, the average music customer with spending around sixty four dollars on music per year. So you mean you're, buying cds, that somewhere between three to five cities per year. Roughly now all this time. The music industry was making huge amounts of money. We're talkin like around four
a billion dollars in nineteen. Ninety nine in the United States and much of that was due to the packaging of music, the bundling of music, like us, had cities pretty much force people into buying whole albums if they only wanted a single song, even cassettes, which did have those Cosette singles. Were I used in such a way that I think a lot of folks, just elected the Bible album, rather than spend more. or on a personal basis like a cassette single, would be less expensive than the full Cosette but if you heard looking at it on a personal basis like like your He didn't like grocery shopping like how much is this per ounce, then The outcome was more economically sound. I guess
But in the late nineties, digital music file format were poised to make a huge difference to create the opportunity for consumers to buy music in a different way and unbundled way, because you could start buying songs individually rather than by full. bombs now before I get into that He to add that the year Recorded. Music peaked is another. One of those things that I find conflicting information on. Allow sources suggests that it was ninety nine, that's what the recording into Free Association of America says that recorded music. As in music, you would go out and purchase a copy of like a physical copy of peaked in ninety ninety nine. But that's where the United States, where They look at the global market. The peak was even further back in ninety ninety six, that was the global revenue around sixty billion dollars. As for artist cuts of how much did artists get for these different kind, the media. Those changed over time too. So
back in eighteen. Eighty three, for example, an artist, would get about eight percent off the sale of an album costing eight dollars. Ninety eight sense: this is from a book by Steve Knocker called appetite for self destruction now nineteen, eighty three as the same year that the compact disc debuted it would the early earlier doctors really when after cities that that at that point, because They were the only ones who can afford it see he Blair's when they first came out, were a couple thousand dollars so wasn't sort of thing that the average teenager could rush out and purchased. At least I certainly couldn't, and of one You get to the point where cities were starting to become de the standard work sets restoring to fade away an artist share office. Sixteen dollar. Ninety five cent cd- was just five percent, so Burma,
for the vinyl album they were getting an eight per cent cut off of what was like an eight dollars. Ninety eight cents, sales price and with the CD is a five percent cut of sixteen dollars. Ninety I've sense, so the CD cost more, but artist got a smaller percentage of the sale not gradually tv prices, increased and artist shares, also increase. They went up to ten percent. By when it really comes to comparing how much artists earned and how much music was worth across different formats. It quickly comes a jumbled, chaotic mess. Really does become impossible there to talk about in any meaningful way. The fact is theirs: does not really any rhyme or reason to it You really look across the years pitchfork a really great article about this. They came out in two thousand fifteen, so it is dated, but the article is titled how much his music really worth I recommend that article, that's a good!
If you want to learn more about this than they really lays out that the price of music has gone all over the place over the years, so pitchfork adjusts all prices to match two thousand fifteen dollars because that's when they article came out and use really crazy amounts like, like a eight track, album of Jimi Hendrix is? Are you experienced in nineteen sixty eight cost fifty three dollars: ninety six cents. For that one, I will be keeping in mind that eight track albums can't hold as much as vinyl at it. Also points out that but cost forty two dollars. Forty three cents to buy a cassette tape of Simon Garfunkel Bridge over troubled waters, album in nineteen seventy M you look at those prices. Coughing up about twenty five bucks in two thousand to for a city of the Eminem show seems quite the bargain, but wait. They gets more confusing because, generally speaking, the price of an album like a single album
declined between nineteen, seventy, nine and nineteen. Eighty four, they went from around twenty two dollars: anyone cents per album and nineteen. Seventy nine to sixteen dollars. eighty one cents per album in nineteen. Eighty four, but then the price of albums and the climb again up to two thousand for, and by then it was up to eighteen dollars. Forty two cents remember: all of these prices have been adjusted for inflation. So it's not. That inflation made these go out. The actual cost was increasing, the cost would drop again to fourteen dollars. Ninety seven, since by two thousand nine, so pitchfork came up with the figures by averaging the per unit sales across all media? So that's it! imitation of all the available options for each album rights in the seventies and eighties you're talking about everything from your average. together the vinyl, the eight track, the cassette tape. All the different views
did you get that album? That's where that kind of averages out too, whereas in the more recent It would be things like cds, maybe cassettes digital. That kind of stuff, so What I'm getting at is there is no apples to apples that we can really talk about here. In fact, we can't even really do apples to oranges. It's more like we're talking. I dunno apples, the can openers or something like that, but at the let's get onto downloads and streaming, and talk about how that disrupted, the music industry, We started to see the unbundling trend with the rise of digital music stores are primarily I tunes, which started in the early two. Thousands two thousand and three, I think, is when the Itunes store launched not that stage artists were getting about fourteen percent off a full album that was purchased off. I tunes and typically, and a full album off Itunes cost about nine dollars. Ninety nine sense that is it
greater David Byrne of the talking heads but another format was also going to shake things up, and that was streaming so, let's about streaming streaming, really is what it sounds like your stuff, aiming data from one source to a destination device in this case that data represents audio One group created a streaming audio technology that they then incorporated into a music service called tune to dot com. That's t you in e t, o dot com That was an online radios service. They are What were they more on demand streaming, audio concept that they called Aladdin? in two thousand one: listen dot com purchased tuned to dot com listen dot com, meanwhile also owned and online music directory so pair. The Aladdin concept of this on demand streaming service,
this large music database listen dot, com, He did a new service that they called rhapsody. This would be the streaming, music service and it launched in late. Two thousand once so, it actually came out before the Itunes Music store dead, to listen to rhapsody customers, the fork over a monthly subscription v. The following year, Rhapsody built out their library further by making deals with major music labels. The gun the real networks are a l networks. Go on to acquire, listen, dot, com, the stuff happens. All the time in tech particular during this era. because there's always a bigger fish and happened, just as the Itunes Music store launched an Joe to bring Napster back into this in two thousand sixteen rapidly, which was by this point and in that company in the ill its own history, is worth an entire episode rapidly, would re brand as Napster. There was no,
bill connection to the original peer to peer network that cause the music industry so much headache back in the neo. Ninety agenda two thousand one time but it I have the same name. They bought the rights to the name, so we could say that streaming really got started in late, two thousand and one early, two thousand and two also in two thousand to last but if I M would introduce a feature that would become important for later streaming. Services like Pandora, that feature would track user activity, meaning which as long as the user was gravitating toward and then use that information to make recommendations of music that the listener might not be aware of, but they could potentially really like, based on their preferences, I give you listen to a lot of banned, a maybe also like band, be that sounds a bit like Bandy Pandora take this concept and push it much harder growing out of something that was called the music genome project. You pray
Let me talk about men data in the past. Many data is information that is about information, for example, for each episode of text off I cried many data and the many data includes a brief description of the episode. It also includes key words that relate to the subject matter, so, if you're searching for a specific text off topic more likely. The pop up. Many data helps computers, contextual, lies content in some way, because computers aren't natively, able understand what content is so, it's on the music genome project would break down a lot of the basic components of the music in order to conclude understand what that music, was an actual human beings were doing this work by the way it wasn't like. The computer was scanning a song and saying oh, this song has you know up a very strong power led guitar
the pandora, employees will include tags of songs like female vocalist or up tempo beat or long, guitar, solo or whatever. You know they use different ways to describe the music and the and or a service would later used those descriptions to create dynamic, playlists amusing, listeners, based on a seed song or artist, so Oh, you might go in there and say like I want to create a Pandora radio station that uses They may be giants as the seed band and they might pull other artists, like I don't know bare legged. Ladies, near. You could argue whether or not that similar to they might be giants, but there's a lot of overlap in the listening habits there that's kind of the idea, so the and airports in the starting point that music genome project Bit says: ok, what are some of the characteristics of the song and or artist, and what other similar artists and songs can I draw from in order to create,
a playlist. It was and is pretty darn cool. Well gonna talk a bit more about Pandora, in particular, and the tribulations that it faced when it came to during out things like licensing these. Have we come back from this break? we are living in a fast changing world war. The best ways to succeed in it is to learn how to code tried Code Khatami today and see where coding can take you More than fifty million people already know that code Khatami is the best way to learn to code. That's because Code Khatami. Not only teaches you job ready, coating skills, but also helps you build unique projects for your portfolio earn certificates and even prep for technical interviews Ya'Ll.
Coding skills are more important in the job field than ever before, and this is an opportunity to build your own skill set a knowledge base which can open up the doors to new jobs and career pass. It's time to invest in yourself at Code Khatami, you can choose what to learn from building basic websites to artificial intelligence and everything else you could want. You'll learn, coating languages, including python, HTML, Cs S, Sql, javascript and more and no matter. what your experience level you'll, be writing real working code in minutes join what the fifty million people learning to code with code canopy and see where coding can take, you get fifteen percent of your code Khatami pro membership when you go to Code Khatami, dot com and use promo code, tat, stuff, that's promo, code text of a code, canopy dot com to get fifteen percent of Code Ketamine pro the best way to learn to come
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learn more at royal, caribbean dot, com, Sunday night Showtime lying mission is your: from the producers of STAR Trek Discovery and STAR Trek. Picard comes the man who fell to Earth Academy Award nominee. Each would tell it to you, for this is the neck step. Nothing, the Academy award nominee Naomi Harris. They are coming for you the man who fell to earth now streaming only on Showtime, So nor is features and similar ones that are designed to do your pretty much the same thing. the backbone for lots of streaming services. Of course, not all Hymning services are dynamic. Some follow more of a broadcast model. For example, I listen to the eye heart Radio Broadway station a lot, that's more like a streaming radio station where they're doing
the programming on their side ahead of time. It's not like it's just dynamically pulling the next song if I listen to a Pandora station like a Pandora Broadway station, I'm hearing music, that is at least in part curated, based upon whatever I used to cede that station now, it comes to music streaming, the music industry would treat that kind of consumption similar in a way to radio broadcasts similar, but not identical. In fact, in many cases the industry would effectively penalized streaming platforms and at multiple points cup. Is like Pandora, faced the possibility of having their entire business model threatened. Or is this this part the story gets even more messy than it already has been equally, I mentioned as cap, so ass cabin other proof Many rights organizations seek out licensing fees and royalties right and our certain percentages that these
he got for radio broadcasts where they will negotiate a percentage that they'll look to claim for songs that are broadcast on re In the early days of internet radio, there was a real imbalance between what terrestrial radio stations were expected to pay and what streaming services were expected to pay. In some cases, streaming services were expected to pay twice as much forestry. being a song as the radio would be charged for broadcasting assault, and you also see like the the France in operation makes a huge effect here too right, because radio station broadcasts a song they might have to do server and Nielson Review to figure out how many people are listening to that radio station right. Streaming services can theoretically anyway, exactly how many people are listening to a specific song, while a song my bride.
cast over the radio three or four times in a day, How do you killed that? You count? That is a single performance. Do you count that, against the percentage of your home, you, people listening to that radio station was streaming services there is no limit to how many times a song could be streamed in a day would all depend on how many people were listen to that song, but really complex thanks Are largely because the ruling of a U S agency, called the Copyright Royalty Board that formed in two thousand forest the copyright, royalty and distribution reform ACT here in the United States, the board includes a panel of three judges. Who quote oversee the copyright laws, statutory licences which permit qualified parties you. multiple copyrighted works without obtaining separate licences from each copyright owner input cause. Obviously, if
running a broadcast service would be impossible to seek out a licence for each copyright holder and still, you now have a service non to them, seven, the sea are be created, new regulations for online royalties, which many platforms claimed, would mean those platform. Would have to pay out more and royalties than they making an ad revenue, meaning the royalties, Please threatening the very business of internet radio. a lot of companies got upset with the sea are be including the one I work for. Of course, back in those days it was not known as I heart rate It went by the name, Clear Channel communications, now the rate streaming started out at point: zero, zero, zero, eight dollars per play, so not even a penny per play per listener, back or powerlessness rate. I should say back in two thousand six, but it would increase all the way up, two point: zero: zero one, nine per blame, her listener rate in twenty ten and that's where it would stay now, despite
acclamations that this would bring an industry me ray online. It didn't Then it was also complicated to just keep track of which tracks were playing and how often they are playing on and watch platform. Their blanks are really got hard to determine if streaming platforms were actually paying out royalties properly are not in fact those people guessed that they weren't. That artists we're getting what they were owed and that there were a couple of different reasons for this. Some of them were kind of honest ones, in that it was genuinely hard to know whom you are supposed to pay, and others were me maybe be that some of these platforms were lying on the fact that it was so complicated and opaque. Did they kind of get away with not being done. eighteen. U S. Congress pass the music modernization act in an effort to get a handle on this problem. The set up a nonprofit agency, called the mechanical licence, collective or email seem starts to sound like a disturbing in science.
she novel anyway. The analyses responsible for maintaining a database of the owners of mechanical licences for copyrighted works. The and Elsie COL Licensing fees for music streaming services and the database makes it much easier for these streaming serves as to identify the owners of the licences. so that the streaming platform can make sure that the right person is credited and ends up getting what they are owed heading up to two thousand and eighteen? This was a really a big challenge again because there wasn't a centralized database, so the MLC was working to change that the MLC is also responsible for paying out those fees to the proper license holders. There's actually a couple steps in that as well streaming services can still negotiate directly with licence holders, but otherwise they have to pay a compulsory fee to the embassy to do streaming of those songs. But what does this in for the actual licence holders, the artist or rather the composer, typically, how
what are they getting paid? Let's say you got yourself an album That alone is available on a service like Spotify and first speech by generates revenue through subscriptions and such and takes a big cut of that incoming revenue so spot if it takes around thirty percent of all the revenue, the rescue into a bull biggest divided up among all the other parties involved, and getting music on Spotify so That includes your record label, your music publisher, your distributor and you. And depending upon how frequently folks were streaming, your particular album. Your pool might be much smaller than someone else's. cause you're all sharing that amount right. The seventy percent that's left over after Spotify takes it. Cut that's love for everybody to up based upon how frequently there's still those songs were played on the platform
So what this means is that by the time everyone else has taken their cut. There is very little left to go to the artist plus rigour both have been a little opaque and how they pay out artists, so it makes it even more complicated business insider reported that an artist might receive somewhere between point zero, zero. Three three two zero, zero. Five four dollars per stream, so less than a cent per stream. If I don't mean that someone to listen to a song multiple times before. Our several people have to listen to the same song before an artist would even see a single penny that many would still get split with be published other entities like ass cap that money by the way, also like I said, does not go directly to the artist from Spotify. Instead, it goes to whichever tributor handles your music and thus the disturbing receives the royalties from the streaming platform. Then pays more like the record label and then your The label will eventually pay you on. What
Her schedules- all of these different entities- are working on so They can be a bit erratic This is largely why the live event. Space is so important for musicians because, while you can make money streaming. Songs on block platforms likes, but if you need to be really popular you needed have thou. Thousands of people. Listening to your songs, before that, there really become something where you can live off of it, so really streaming is there are at least getting a decent revenue from streaming is really a limited to extremely popular acts. Already If you are a small independent act, probably not getting a significant amount of money from streaming, I I get more by selling your music directly through platforms like band camp, or maybe you're getting a regular support system do something like Patria on or maybe you're. Just making money by plane
live venues, selling merchandise Maybe or even pressing your own vinyl and selling it dug its really expensive do heads, If you ve ever wondered if you ever gone to a show and they ve sold vinyl and its firm, like twenty five bucks or something have you ever wondered why its twenty five dollars to buy a vinyl album? It's because producing vinyl independently is really expensive, you have to pay a certain amount of money just to get the the master produced and then on time. That the actual pressing of vinyl cos a good amount of money? Typically, it gets a little more economical. Your producing larger, runs, but then to sell more in order those larger runs to be worthwhile right. Otherwise, you've got a garage filled with vinyl that you can't move so yeah. the complicated thing the recorded and streaming busy says of music. Really tough, tough, like specifically tough on artists,
but particularly for an artist who didn't write your music. Then you really not look a whole lot of money and royalties. The person who wrote your music might be looking at some, especially if the song is really no super popular and viral, or something But otherwise it's a very tough gig and yeah. Its super complicated in always has then the music companies typically are the ones that end up making out like bandits here near your table. like now billion dollars, the billions of dollars in revenue every year, but there Also, the companies that are promoting artists in spending money to try and get people to be aware of that the centre under their label, so there's a trade off their staff. Oh, I suspect a lot of rhetoric executives out there probably make more money than
Maybe they may do like. Maybe some of that money should be trickling down to the folks actually making the music as well as the people responsible for making sure that the report of that music is good at all. technicians who are working there. I think that broiler needs to a bit more redistribution of that, but they will I feel that way about privilege. Every industry everywhere that had the people who are responsible for the work deserve more credit than what they typically get. Well, there you go. There are a couple of episodes about the music industry and how technology affects the way the business of music works. There's more to say here by the way, for example, the rise of the mp3 would end up chow. Jeanne. The way music sounds quite a bit. That was largely because the way that mp3 files compressed data.
often also incorporate compression of music compression in the sense of reduced dynamics, say you have A reduction in the difference between these softer sounds in the loudest sounds that means that You start to have more real using the has more of a uniform loudness to it, and that of dynamic fee you're in the music is something that was driven by technology, some people- on that because they say will allow the music is less complex, less nuanced and out, and it is, it can all start. found very similar to each other, even when you're talking about different instrumentation and everything. The fact that you have this kind of, Standard loudness becomes an issue, so there are other elements that we could talk about as far as how technology has affected music and, of course there is also the whole story of electrical creation of music, everything from electric guitars to the rise of some
the sizes and the Essen synthetic drugs kids. That kind of thing but that would just go down more rabbit. Holes and plus I've covered some of that in the past. But if you do want me to talk more about music and tech and how the two are so closely relate. Let me know you guns, don't let me know on Twitter, as I recall, There were waiting to find out if Twitter actually does completely no agreed, sailed to Elon Musk that something that's happening, just as regarding this episode And if that does happen, I might I might just images piece out of a twitter for a while, but even that case I will make sure that there will be another means of contact me if we do want to contact me on Twitter, over the show is tat stuff, each as W. And I'll talk to you again.
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help you open everywhere. They are go to square dot com, slash commerce, to learn Watts possible available now from my heart. Returning for season, three is the restless ones and original podcast presented by T Mobile for business, and I heart radio. join me as I sit down for in depth. Discussions with the people at the intersection of technology and business. You'll learn how of these leaders is building a bridge to what's next and left urging transformative technologies like five g to create a more connected and meaningful future. Today, listen to them Restless ones on the Iheart Radio, app apple podcasts, wherever you get your podcasts, mama what chick and fell upon the giraffe really Juba. Draw you're, not gonna, get it all right. This makes your email, the big stuff like making sure your kids, uncle correctly in the right seed for their agents eyes get it right. Is it
de. I say God, girls most right, see broad by the National Highway Traffic Safety Administration in the ad council. I am EVA Longoria and I am so excited to share my new podcast with you. It's called connections with me even more yet the goal of this show is to learn, get inspired and get connected. How shall we connect with our partners or kids money. Politics will lose jobs, news spirituality! Sacks. How can we connect better with ourselves? Listen to connections EVA Longoria, on the Iheart Radioactive Apple podcasts or wherever you get your punk chemists.
Transcript generated on 2022-05-02.