Thread: Are labels skimming?

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  1. #1
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    Default Are labels skimming?

    Article.

    Is this true?
  2. #2
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    Default Re: Are labels skimming?

    The source is the Big Tech Propaganda Ministry.

    It's pretty much bullshit from start to finish.

    That isn't to say that labels may not be skimming in some cases.

    But the streaming companies are the main skimmers, skimming 30-50% for music they had nothing to do with making. They are the correct enemy.
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  3. #3
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    Default Re: Are labels skimming?

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    Default Re: Are labels skimming?


    No.

    The article is filled with half truths and misinformation, either deliberate or based on sheer ignorance.

    The propagandist who wrote it doesn't even know the difference between a label and a PRO. (Or if he does he's deliberately lying.)
    http://www.johnnyoklahoma.com/

    Originally Posted by Bob Ohlsson
    Everything is some mixture of awesome and suck. We simply want the awesome to be highlighted sufficiently that it distracts listeners from the suck.
    Originally Posted by Bob Ohlsson
    The appropriate role for science is the study of observed phenomena to gain an understanding. It is not dictating what people ought or ought not to be observing.
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  5. #5
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    Default Re: Are labels skimming?

    Astroturfing - one man's living. An entire race's doom.
  6. #6
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    Default Re: Are labels skimming?

    Wow, few bits from the article made my bullsh*t alert go!

    They are demanding royalty rate increases and a larger direct cut of streaming companies' revenues, which already operate at half-mast by paying out 50% or more of revenue to royalties.
    Umm, so to operate full-mast they must stop paying royalties?

    Also:
    In September, BMI also announced "record breaking revenues" of $1 billion with digital revenues exceeding $100 million for the first time ever.
    Let's look into the article:
    BMI’s historic revenue performance comes in the same year the company prevailed in a groundbreaking rate-setting case against Pandora. After a nearly two-year legal battle over the value of the BMI repertoire to the streaming music giant, the court agreed that BMI’s proposed rate of 2.5% of Pandora’s gross revenue was the more appropriate reflection of the value of BMI’s music. Importantly, the decision established that publisher marketplace agreements can be taken into account as benchmarks when determining rates, an important step forward in valuing music today.
    Uh oh

    And from the same article:
    BMI’s digital revenue exceeded $100 million
    BMI processed nearly 600 billion performances, more than 500 billion of which were digital
    So, 5/6 of all performances bring only 10% of revenue.

    Now back to the original piece:
    These creative people have a legitimate gripe. But by attacking the streaming companies, they are going after the wrong enemy. As Berklee College of Music music professor Allen Bargfrede said in a recent story in The Economist, "The back end of the music industry is just a nightmare."
    Follow the link to the article, and find where it attacks the labels? Yet the way it is presented hints that it is labels who are to blame.

    By attacking the streaming companies, they risk stifling the one source that is actually generating evergreen revenue for them.
    See above for the actual figures on digital revenues.

    Record labels still work "breakage" fees into their deals, which was money that was originally meant to cover the cost of records or discs broken in transport. In the streaming world, that's just no longer an issue and it is one tangible example of money that's being funneled away from artists not by the streaming companies, but by the labels.
    Now, where the hell did he get that sh*t from? There NO mention of that in the article he cites. In that article "breakage" fees are simply the difference between advance given from distributor to label and money passed as royalties.

    Well, nice job Mike Montgomery
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  7. #7
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    Default Re: Are labels skimming?

    i keep coming back to:

    labels INVEST, sometimes rather large amounts, in you in exchange for the deal they make

    that is a huge difference from companies just maneuvering to be middle men for the work YOU have to fund yourself; at no risk to them
  8. #8
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    Default Re: Are labels skimming?

    Right. They try to spin it "We send all this money to the record labels but it doesn't get to the artists" as if the label is supposed to be a charity. It doesn't matter if you're a major label or the indiest of indies, you only make money on a successful project, and that has to cover your expenses, your losses.

    Meanwhile, the streaming companies take 30% - 50% off the top for hosting files while speciously claiming that they're innovating. I've been using Spotty since it came to the US; I haven't seen any innovation. It's a file hosting service with a search engine.

    Then they invoke Stockholm syndrome: "We're all that's left because of piracy. Take whatever crumbs fall on the floor and be grateful for it."
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    Default Re: Are labels skimming?

    They ARE piracy, wearing a Grandma suit.

    http://www.johnnyoklahoma.com/

    Originally Posted by Bob Ohlsson
    Everything is some mixture of awesome and suck. We simply want the awesome to be highlighted sufficiently that it distracts listeners from the suck.
    Originally Posted by Bob Ohlsson
    The appropriate role for science is the study of observed phenomena to gain an understanding. It is not dictating what people ought or ought not to be observing.
    Hey, if I'm Grumpy, where the hell is Snow White????
  10. #10
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    Default Re: Are labels skimming?

    Streamers ought to be paying 90% of their income to artists just like a concert promoter.
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  11. #11
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    Default Re: Are labels skimming?

    Streamers ought to be paying 90% of their income to artists just like a concert promoter.
    A good point!
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  12. #12
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    Default Re: Are labels skimming?

    Streamers ought to be paying 90% of their income to artists just like a concert promoter.
    Can you guys explain what makes it possible for them to pay less? What is the bargaining power they have over the artist?

    -r
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  13. #13
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    Default Re: Are labels skimming?

    Can you guys explain what makes it possible for them to pay less? What is the bargaining power they have over the artist?

    -r
    Partly lack of competition among them. Partly pressure on artist from pirates. And also their own believe they are somehow entitled to get more. Have you ever seen concert promoter complaining he is operating half-mast (or would it be tenth-mast?) by giving 90% to artist?

    PS shown the article to a friend of mine, who recently got few bucks from apple music and google play (2 times more for a quarter of plays from the latter). He said, let the writes of these articles have 0.0000000004 $ for each read.
    Last edited by meLoCo_go; December 25th, 2015 at 06:33 PM.
    When in doubt, mumble!

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  14. #14
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    Default Re: Are labels skimming?

    I think because Sil Val has formed a de facto alliance with Wall Street.

    But I think the main thing is that when it looked like all was lost and the entire recording industry looked like it would sink in a sea of piracy, Apple came along with itunes.

    Apple said, this is the only game in town -- we get 30% of everything, take it or leave it.

    Not having much of a choice, the major labels went along with it. That established a precedent. And music people were saying, Apple, our salvation!

    Then Spotify offered the same deal. 30% off the top. Tidal originally was supposed to pay more, but I think they take 29%.

    Youtube takes 50%. The funny thing is that youtube only breaks even, I suppose because servers are expensive to build, maintain and operate. They need to be able to host billions of videos of people hurting themselves and playing with their pets, for free. Someone has to pick up the tab.

    Spotify also loses money. Lost $197M for fiscal 2014. When the numbers for 2015 become publicly available next year it may be game over. Spotify's enormous free tier is dragging it down.

    Spotify also pays its employees, whom it considers the real superstars, high wages and gold plated perqs. Make 6 figures plus benefits. Knock up your wife and you get 6 months off with pay. I wonder how many billion streams that's worth?

    So a manager gets paid 15% and an on-demand streaming company takes 30% for basically hosting files in the cloud.

    But you can't run a Ponzi scheme without money coming in. Not for long.
    Man! You have GOT to try a hit of this RANGE SUNSHINE!

    IMTBO = In My Thoroughly Biased Opinion
    CMIIW = Correct Me If I'm Wrong
    Never underestimate the amount of contempt a failed musician has for those of us who are still trying.
    If the party's good enough, you can actually suck to a remarkable degree.

    Greedle

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