Wazzup Wize One'z and Gumbo Pot Headz!
In case you didn't know: BMI Won in New York!
Even if I wasn't a member, I would be amped!
For two years BMI battled Pandora in court over licensing fee rates. I'm sayin', if it was compared to a rap battle, it would be like a longer version of Supernatural killin' Juice!
BMI spit in a NY court and Pandora lost some Juice!
(link provided below for those of you too weeded out to remember that battle)
Supernatural Bodied Juice; Click Here to view an Art of Rhyme Clip
BMI spit in a NY court and Pandora lost some Juice!
(link provided below for those of you too weeded out to remember that battle)
Supernatural Bodied Juice; Click Here to view an Art of Rhyme Clip
They finally settled on 2.5% of revenue last week.
Attention songwriters: The days of watching your music being given away by companies who profit and pass on next to nothing of those profits to you (the songwriter) are slowly dying!
Like intestinal parasites inside of road kill!
At the top of the year the Copyright Royalty Board (CRB) announced a settlement between Sirius XM and SoundExchange.
That settlement was in regards to the royalty rates applied to " New" Subscription Services Packaged with Cable and Satellite Video. For those of you that read Hip Hop Gumbo because you like stuff explained in plain english, it means the music channels that come in the packages offered by cable and satellite providers have to pay you for using your music too! There is still some battling going on in other areas .
Last I checked, Music Choice still pays an eyebrow-raisingly lower rate than Sirius.
I thought they offered the same freakin' service. Made no sense to me why they would get to pay less. I did some diggin' and found out it's because they are classified in the Digital Millennium Copyright Act (DMCA) as a" preexisting subscription service", whereas Sirius is classified as a " new subscription service". If there are other reasons why they are classified differently,
I thought they offered the same freakin' service. Made no sense to me why they would get to pay less. I did some diggin' and found out it's because they are classified in the Digital Millennium Copyright Act (DMCA) as a" preexisting subscription service", whereas Sirius is classified as a " new subscription service". If there are other reasons why they are classified differently,
my delving in to those reasons would probably give us all indigestion! That is one ingredient that will be left out of this pot!
However, I'm going to take a crack at opening this nut and explaining it in a Shell, and that gas station is located at...just kidding! Sirius pays 15% of revenue and I think they can also pay rates based on a per subscriber fee; whichever is greater. Music Choice tops out in 2017 at 8.5%. Music Choice rates were determined by using the good old "willing buyer, willing seller standard". A Judge sets those rates based on his/her estimate of what the rate may be in a future competitive market. It's an educated, albeit, hypothetical guess.
However, I'm going to take a crack at opening this nut and explaining it in a Shell, and that gas station is located at...just kidding! Sirius pays 15% of revenue and I think they can also pay rates based on a per subscriber fee; whichever is greater. Music Choice tops out in 2017 at 8.5%. Music Choice rates were determined by using the good old "willing buyer, willing seller standard". A Judge sets those rates based on his/her estimate of what the rate may be in a future competitive market. It's an educated, albeit, hypothetical guess.
A Judges rates are being applied to services offered by Music choice now that didn't exist back when the DMCA went in to effect. They knew they were at the dawn of the digital age. Music Choice obviously existed but they were only on cable radio back then ,and so, they get to use that standard because they were Grandfathered in when the DMCA went in to action back in 1989. Between the Internet Radio Fairness Act, "Music Bus" Legislation, Perform Act, recycling of Songwriter's Equity Act, Senate's review of anti-trust consent decrees reigning over BMI and ASCAP, arguments over RIAA collecting royalties from digital music services (and then dispersing shares between the applicable songwriters and sound recording copyright holders, or the just as scary alternative; Record Labels themselves collecting royalties from digital music services and omg wait! Moment of laughter, followed by a feelin' the gumbo is stickin' to the bottom of the pot-stirring-stirring- please wait. Ok! It did not stick, much like the idea of Record Labels dividing royalties collected from digital music services and disbursing them to songwriters and sound recording performance copyright holders in an ethical and timely matter didn't!
Speaking of Sound Performance Copyright Holders, overall they still get a whole lot more than the Songwriter at this time! It's like that old joke ,which came 1st, the chicken or the egg? In this case who is worth more? No wait! Who has greater value? The songwriter or the singer? I have a young label, but I'm always a songwriter first! Songwriters face getting screwed again if digital music services pay one royalty and then it gets divided between songwriters, and all the other copyright holders. Anyway, sorry for the RUN-ON!) and the mighty convoy of music industry fueled vessels cruising across legislative waters flying digital download battle ensigns, it should be as obvious as Jay Z's "Tidal" music streaming company; a wave of change is imminent! We are in awesome times. There's a chance that higher rates, as it pertains to digital downloads licensing, may get so costly that overall music sales plummet, and digital music service providers go belly up. Someone is going to suffer a huge loss. We songwriters suffered for far too long!
I wouldn't lose much sleep if digital music services took the hit! Pandora and so many others like them built their company at the expense of songwriters, and producers. Now many services like them have the nerve to exclude smaller labels, and reject Indie artists submissions. Pandora has become much like the story, and has become a box many wish was never opened!
One thing I can say about her is that she belongs in the mix, and I'd hate to see her go because she is one of the few that still accepts Indie artist submissions! Unless you are "Grandfathered in" new Indies can no longer showcase music on Spotify. Many other digital music service providers are dissin' new Indie members until they reach a certain amount of sales prior to review too! What!? How long was I gone please?! Attention songwriters and music producers: they need us more than we need them! Where is the grace? Where is the win for Indie Artists and Producers who at the very least could obtain exposure through these services? What happened? I know I sound judgmental as it is, but nevertheless , I'm going to quote God's word on this note, "To whom much is given, much is required"! Digital Music Services have been given much and should be required to give back! Ok ok ok! I'm putting my soapbox away. Flat footed again.
I boldy proclaim; the world can live without digital music services! Right?
Well, maybe not. Like Debarge says, Time Will Reveal!
I wouldn't lose much sleep if digital music services took the hit! Pandora and so many others like them built their company at the expense of songwriters, and producers. Now many services like them have the nerve to exclude smaller labels, and reject Indie artists submissions. Pandora has become much like the story, and has become a box many wish was never opened!
One thing I can say about her is that she belongs in the mix, and I'd hate to see her go because she is one of the few that still accepts Indie artist submissions! Unless you are "Grandfathered in" new Indies can no longer showcase music on Spotify. Many other digital music service providers are dissin' new Indie members until they reach a certain amount of sales prior to review too! What!? How long was I gone please?! Attention songwriters and music producers: they need us more than we need them! Where is the grace? Where is the win for Indie Artists and Producers who at the very least could obtain exposure through these services? What happened? I know I sound judgmental as it is, but nevertheless , I'm going to quote God's word on this note, "To whom much is given, much is required"! Digital Music Services have been given much and should be required to give back! Ok ok ok! I'm putting my soapbox away. Flat footed again.
I boldy proclaim; the world can live without digital music services! Right?
Well, maybe not. Like Debarge says, Time Will Reveal!
I'm sure about one thing however, 2015 the year of the sheep is going to continue being a defining year for all of us that are in the music business flock. Regardless of where our music career is today and regardless of what our future goals may be, we need to keep a watch on all decisions that relate to digital downloads. If you are like me, cd duplication is and will continue to be looked at as a minimum necessity. DropCards are what will be offered at shows featuring Artists who soar exclusively from the Wize Records Nest, myself included. We'll provide a small amount of CD's for Fans that prefer them over digital downloads.
Wize Records, and MAJK FISH Productions acknowledge their existence and value. Like most young Indie labels who are NOT financed via a stream of drug money,we can't acknowledge their existence to the degree that we're warehousing dusty boxes of CD's. Stacked like inner city towers due to the majority of our fans downloading music purchases on their cell, tablet, or laptop. Low overhead is crucial for any business, but its especially crucial for Indie labels because it is common for us to have to give away free music. We already eat a loss for the sake of brand recognition, fan retention, and a few other reasons I won't mention. At this point, physical Cd's in my mind are primarily for industry people: Dj's, 3rd Party distributors,Press, etc.
Otherwise I view them like merchandise you put on a page in your online store that sells t-shirts of your brand! The music world went digital! I can't honestly perceive a significant turning back!
Otherwise I view them like merchandise you put on a page in your online store that sells t-shirts of your brand! The music world went digital! I can't honestly perceive a significant turning back!
There are music industry forecasters and noteworthy guru's who predict the trend could soon be leaning towards people purchasing actual physical CD's after all these rates, royalties, and licensing issues are hammered out. They predict music will be so expensive to consumers (now that the creators of it are getting a better share) that they will stop buying music, music purchases will drop, or they may find other alternatives to accessing it and as a result of those new access venues, overall music sales will plummet.
I don't know about all that, but I do know people will always derive pleasure from music!
BMI opened Pandora's box!
We came away with 2.5% of revenue! Today it is a victory. Something for your art, is better than nothing! Much is going on that wasn't address here. For instance, the Department of Justice is going to review some of these Acts, and at the time I wrote this, they may have already began to alter some of these Acts. The CRB had hearings on Webcasting Royalty Rates, The Copyright Office started a study on enforcing copyrights on photos and other images that stations use in this digital platform, The FCC is all over iHeart radio's tail and Broadcasters in general, and so much more ish is goin' down! I will try to blog most of the areas that peak in my lil' mind as relevant to Indie's and I am inviting you
(yea you that's reading this now) to throw in your comments too please!
Even if you just like to stir the Hip Hop Gumbo Pot and have no seasoning to add to it, I still appreciate your feedback! I'm putting the lid on this pot by saying digital music service providers exist because of songwriters, producers, artists, and publishers. Out of that list, in general, songwriters get the least amount of money. It's high time songwriters got a fair share!
