music business

Open Rights Group musters Flash Mob… of 7

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Sorry ORG

Music House — HQ for a number of the UK music industry’s trade groups — was in a lock-down situation this lunchtime as an Open Rights Group Flash Mob descended, protesting against the Digital Economy Bill.

As many as seven protesters could be seen outside the Berners Street offices, according to staff who phoned us from beneath their desks. This is slightly down on the nine who had pledged their support on Facebook.

Twitter was a hive of activity, too. We’d counted two Tweets on the protest in an hour. Photographic evidence below suggests that after an hour, the number had swelled to almost double figures.

In a simultaneous gesture, over at the BPI’s HQ, three protesters handed in a “disconnection notice” to chief executive Geoff Taylor, who apparently wasn’t in.

Music House, the focus of the main protest, is home to the PRS For Music performing rights society, the Music Publishers Association, the Musicians Union, the Music Managers Forum, the British Academy of Composers Songwriters and Authors, and umbrella trade group UK Music.

The ORG’s FlashMob was trailed as a “Stop Disconnection April Fools Flashmob” with the question “Are we being made fools of?”

But with a turnout of less than a dozen, that’s a question that answers itself, really.

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The problem with ‘substitution’ studies…

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A study for the international chamber of commerce reckons 2.7 million jobs have been lost since 2004 in Europe because of unlicensed internet downloads, and warns economic losses could treble to €32bn by 2015. The report is backed by trade unions, including the TUC.

The work was led by Patrice Geffon, an economist at Paris Dauphine University, for consultants Tera. It uses the WIPO definition of creative industries, including software, databases and printing as core jobs, and support and consultancy for example as non core jobs. It’s likely to strengthen calls for legal measures to deter downloaders, since picking up unlicensed music, movies and software is currently largely pain and risk free.

“Stemming the rising tide of digital piracy should be at the top of the agenda of policy makers,” the authors conclude.

But it’s not going to be without controversy. Debate over such studies focuses on the net substitution effect – the degree to which a digital download substitutes for a genuine purchase, minus any positive effect of spending on a legitimate good which might not otherwise have taken place. This ratio varies significantly across various types of goods.

For digital music, most academic studies put the figure at 1:10: for every ten CD downloads, the consumer typically forgoes one legitimate purchase. This is significantly lower than the 1:1 ratio some music industry figures insist upon. But still it’s a net negative effect.

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Home streaming is ‘killing music’

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Two weeks ago a US market research company caused a panic in the music business when it reported sales of MP3s had declined. DRM has all but disappeared from digital music, while music catalogs and retailer choice have grown… and yet the volume of digital song sales fell. Ironically, it’s the major labels’ darling Spotify that’s bearing the sharp end of the backlash.

Two thirds of people don’t download unlicensed music at all, it’s a minority pursuit. But that “honest” mid-market is not only losing the habit of buying CDs, it hasn’t acquired the habit of buying digital songs either. NPD found that between 2007 and 2009, about 24 million Americans stopped paying for music in any form.

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Music biz: get a cluestick from online games

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An answer to the music industry’s woes slipped into the IFPI Annual Report last week, but its significance went unnoticed. Before I get to it, though, here’s a poser.

“We screw the struggling artist, and pay the suit,” Nick Carr mused recently. Carr was examining a contradiction: information has never been less free, it’s never had as much as much value attached to it. Once you add up your Sky Sub, mobile broadband bill, and the many other information services, we pay a fortune for information, most of which is entertainment. He continued:

“It’s a strange world we live in. We begrudge the folks who actually create the stuff we enjoy reading, listening to, and watching a few pennies for their labour, and yet at the very same time we casually throw hundreds of hard-earned bucks at the saps who run the stupid networks through which the stuff is delivered,” he wrote.

elsewhere and you’ll find people saying they make a point of principle not to pay for entertainment digitally, because entertainment companies are wicked. The principle is that two wrongs make a right, which makes withholding the payment justified. Maybe even morally superior to paying.

But as Nick points out, we all actually pay a fortune to suits – they’re just different suits. They’re suits at large telcos, advertising middlemen (eg, BT) and service companies. The answer seems simple.

If you’re a copyright business, then to appease the copyright militants, you must pretend that you’re not. You must say you’re in plumbing, or infrastructure. Or anything, actually. For the world’s biggest record company, Vivendi, this will be a case of returning to one’s roots. Universal’s parent Vivendi began life as Paris’s first monopoly water supplier – it only changed its name from CGE and spun off the water and sewage businesses in 2000. And look, we can mention sewage and The X Factor in the same sentence without berating the obvious.

 

 

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Record labels seek DMCA-style takedowns

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Exclusive Record label trade association the BPI wants sweeping changes to UK online copyright practice in 11th hour amendments to the Digital Britain bill. The amendments would grant copyright holders injunctions against websites and service providers similar to the US DMCA act – but with no ‘safe harbour’ provision to verify whether the claim is … Read more

On the occasion of the Pirate Party’s first UK address

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In The City

Opening Comments for the In The City P2P Panel, Manchester, on Sunday 18 October:

Although Rik [Falkvinge]’s in front of us in flesh and blood, he wouldn’t exist – the Pirate Party wouldn’t exist – without enforcement policies being the primary goal of the music business. The programme bills this as “two sides of a debate”, but as a journalist I get incredibly suspicious when I hear there are just two sides, because usually there are two, three or four more we don’t hear about. Let’s put this into context.

The Pirate Party exists because of a political vacuum. Politicians don’t do politics anymore. Compare them to Lenin and Thatcher, for example, who had ambitious programmes of what society should look like, that cut across social, economic and personal ideas of their time. If you look at what a politician does now, it’s focus groups.

So into this political vacuum you’ll have lots of fringe, single issue groups. The Pirate Party is the first and most successful.

Now Rik specifically evoked some Enlightenment values in his presentation – [individual rights against the church and state]. But I see this as a very conservative and reactionary movement in two quite specific ways. First it’s a techno-utopian movement that’s all about replacing politics. It presents itself as a political party, but it isn’t in politics at all. Politics is about people sitting down and working something out, a consensus.

It’s also reactionary in another way.

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