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That Proposed Performance Tax Thing
August 13, 2010
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The only difference between a taxman and a taxidermist is that the taxidermist leaves the skin.
-- Mark TwainI've always believe artists/songwriters deserved to be compensated fairly for their music and I've said that many times here in the newsletter.
However, I don't believe the proposed performance rights tax for the music radio plays is something that will benefit most artists at all in the long run and the bigger picture. The labels of course want the government to impose the tax on radio stations for airing music free of charge for listeners. The tax by the way, "is buried in the rubble of more high-profile congressional legislation such as H.R.1 (the American Recovery and Reinvestment Act) and H.R. 15 (the National Health Insurance Act) is bill H.R.848, The Performance Rights Tax." ( Source: http://tinyurl.com/2dpq7uj )
Those who support the tax argue the United States is the only country not paying artists/labels via such a tax and they say that radio has had a free ride on the backs of labels an artists for far too long as it generated big profits. Of course, it isn't a free ride at all. Fees to ASCAP and BMI collected from radio for songwriter and publishing royalties were over $230 million to each organization in 2009. Indeed, "These agreements were entered into in an economic climate where it was thought that radio revenues would continue to grow, and broadcasters did not want to cut the PROs in for a "piece of the action", i.e. a percentage of the revenue that they make (which was the formula before the current deals).
But, radio revenue has not continued to climb; it has in fact fallen in recent years, the fixed industry fee has caused the ASCAP and BMI fees to constitute far higher percentages of radio revenue than ever before. At the same time, ASCAP and BMI and the composers that they represent have become accustomed to receiving an established, growing pot of money each year." (Source: http://tinyurl.com/yd46yz5 )
And who doesn't want to stick their hand in a big money pot, huh? Obviously the RIAA would love to get into that pot and add money to the diminishing revenues the record industry is experiencing.
The RIAA, the labels, and artists should be very careful of what they wish for. Extracting more money from radio's bottom line as their revenues decline (and have declined even more dramatically than most label with many radio company stocks now not much more than penny stocks that people watch to see if they might at some point be worth buying again) might not just be the smartest move.
Such a tax would most likely mean radio stations would be even more careful about the music they play from new artists that have no previous track record with their audience. Sure, new music is what makes radio exciting. But there's plenty of new music to choose from established artists on a weekly basis, and if playing those artists retains bigger ratings, which will be needed to generate more ad dollars to pay the performance taxes, then there's a good chance that will happen.
Those who support the tax say it's in radio's best interest to play new artists to keep audiences tuned in. Maybe. But even with no performance tax currently in place, if you ask any head of promotion at any label, they will tell you how hard it is to break a new artist today ... and how much longer it's taking versus years ago. I sure don't see a tax on radio expediting things for the better, and the smart money says it will only get worse.
Established artists who for decades have received big royalty checks from ASCAP and BMI might see those checks diminishing in amounts as well. But new and untried artists will suffer the most. What incentive is their for radio to play new artists in any meaningful rotation if they have to pay a tax each time they play their music? Yes, if and when the record/song is proven to be a hit, and the program director views it as something that the station needs to play, it will get on the air. But that process is most likely going to slow down even further.
This week, a new label in Nashville came out against the performance tax. (Yes, a label is siding with radio!) And Jerry Del Colliano has written a great article about it, 'A Record Label Against Performance Royalties.' ( http://tinyurl.com/2bov36d )
From Jerry's article, "The Savannah Music Group is against its own trade association, the RIAA, the way radio should be against its own trade association on this matter, the NAB, arguing the proposed additional royalty tax that would force radio stations to pay performers and record labels would have unintended consequences for struggling artists - namely less chance of getting radio airplay."
Will Rogers said "The difference between death and taxes is death doesn't get worse every time Congress meets." Once any performance tax is imposed, it's my opinion things will only get worse as well for new artists.
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THE 'A-SIDE' - TRACK 2
THE WINDOW IS CLOSING
Things are changing in Hollywood, and faster than some might believe. Hollywood studios are getting closer to a deal to make new movies available to cable and satellite TV operators like Time Warner Cable as early as 30 to 60 days after their theatrical debuts, for a premium price. Under terms discussed so far, cable or satellite customers choosing to watch first-run movies at home would have to pay around $24.99 for a movie 60 days after its theatrical release, and up to $50 for a 30-day window, says Reuters .
Those terms are not yet finalized but studios have held talks in recent months with pay-TV operators including DirecTV and Time Warner Cable, according to sources with knowledge of the talks. Talks about a so-called "premium video on demand" window have been on and off for years but have really heated up in past months as studios seek to maximize profits by reworking movie release windows, adapting to changing consumer behavior. In March, Disney ABC Domestic Television group Thursday renewed its long-term distribution deal with Starz Entertainment to carry Walt Disney Studios films released theatrically through 2015, reported the LA Times.
Read the rest here: http://tinyurl.com/2ft6m3d
And Now For Some News ...
Universal Pulls Its Videos From MTV Online Sites
CNET.COMOnce upon a time the M in MTV stood for Music, MTV was the place for music videos, and labels had their videos on all MTV online websites.
Times change.
Universal Music Group (UMG) has pulled its videos from MTV's online properties saying, ""MTVN has been unwilling to negotiate a fair syndication deal with Vevo to carry our artists' videos and consequently our videos will not be shown on their online properties."
Read more about it by clicking here.
Yoko Ono Sez "Don't Hold Your Breath" For Beatles On iTunes
REUTERSEach passing day The Beatles catalog is not available online at iTunes or elsewhere, it just means that millions more download their songs illegally wherever they can for free.
Evidently, that doesn't phase Yoko Ono who said last week, ""(Apple CEO) Steve Jobs has his own idea and he's a brilliant guy. There's just an element that we're not very happy about, as people. We are holding out. Don't hold your breath ... for anything,"
We won't Yoko, believe me. We don't need to. Anybody that wants to download The Beatles catalog can do so. Illegally. of course, but those that want to, will do so. They aren't waiting for you to make the deal.
Read more about it by clicking here.
That Vinyl Thing Again (And Again): Who's Listening?
CNN.COMFor many, the need for vinyl in today's world of digital music seems obsolete, but those who still listen to vinyl, say that nothing can replace the authentic sound they hear every time they place the needle on the wax.
In a digital music world already three decades old, vinyl records are still in demand and the market keeps growing.
Read more about it by clicking here.
Lady GaGa, The Story In Numbers
THE LOS ANGELES TIMES.COMAn impressive story it is.
To start: This number, 667,070,854: Combined hits from her videography on her official YouTube/Vevo channel for "Alejandro," "Telephone," "Bad Romance," "Beautiful, Dirty, Rich," "Poker Face," "Eh, Eh (Nothing Else I Can Say)," "Paparazzi," "Love Game" and "Just Dance."
The Los Angeles Times has put together other numbers on the lady as well. And when you look at them all, it's easy to see just how GaGa her success has been.
Read more about it by clicking here.
A Day In The Life Of A BMI Music Licensing Exec
THE NY TIMES.COMEver wonder what those music copyright folks do on their rounds to collect payments for venues using their licensed music?
This article in the New York Times will give you a good idea.
Read more about it by clicking here.
Apple's Annual Music Event In Mid-September
CNET.COMSince they held their first one in 2005, the annual Apple event has been held around the second week of September, usually the week following Labor Day. A rumor circulated last week that Apple was planning to completely change things up and hold the event next week. That appears even more unlikely now.
On Wednesday AllThingsD said it is hearing from several sources that the traditionally iPod-and-iTunes-focused event will take place "closer to mid-September."
Read more about it by clicking here.
A $35 Tablet? It's A Reality In India
CNET.COMI know what you're thinking: A $35 table? It must be a joke, right?
It's not a joke, it's a reality in India. The tablet is part of a larger initiative aimed at improving India's educational system through technology and it is scheduled to be delivered by mid-2011, and subsidized to higher-education institutions.
Read more about it by clicking here.
HBO GETS DARKNESS:
The documentary "The Promise: The Making of Darkness on the Edge of Town," which shows Bruce Springsteen making his fourth album and is slated to premiere at the Toronto International Film Festival on September 14th, will air on HBO as well this fall.
GROOVY:
The long-awaited Grooveshark app for iPhone gives you unlimited on-demand music for only three bucks a month -- less than one-third the price of the competition.
MORE JIMI ON THE WAY:
A second set of deluxe reissues this fall, including Jimi Hendrix' Woodstock performance and a collection of the guitarist's U.K. television and radio appearances. "Jimi Hendrix: Blues, Live at Woodstock" and "Jimi Hendrix Experience: BBC Sessions" will hit stores on October 9th on both CD and vinyl.
DON HENLEY STANDS UP AND NOW POLITICIANS HAVE ONE LESS THING TO STEAL FROM US:
Don Henley and songwriters Mike Campbell and Danny Kortchmar sued California Republican senatorial candidate Chuck DeVore and his campaign worker Justin Hart for unauthorized use of Henley's "All She Wants to Do Is Dance" and "The Boys of Summer," which Devore used in two campaign videos titled "All She Wants to Do Is Tax" and "Hope of November." Last week, Henley settled the copyright infringement lawsuit for an undisclosed sum of money and an apology. The lawsuit marked the first time a rocker took a politician to court over a parody.
NO GO FOR J-LO:
It looks like Jennifer Lopez won 't be a judge on "American Idol" after all. Demands from J. Lo's reps were reportedly too pricey for Fox, and now the search is on again to complete the judge's panel.
U-2 SPIDERMAN SET TO OPEN:
U2's "Spider-Man: Turn Off the Dark," will open Nov. 14th at the Foxwoods Theatre in midtown Manhattan, producers of the show announced Tuesday.
ALLMANS READY AGAIN:
The Allman Brothers will return to the stage for the first time since Gregg Allman's liver transplant on November 18th, kicking off three nights of shows at Boston's Orpheum Theatre.
LIVE UNIVERSE LYRICS SITES GO BYE BYE 4 NOW:
A federal court has ordered LiveUniverse, a network of websites run by MySpace co-founder Brad Greenspan, to cease operating four sites offering unlicensed song lyrics.
The Music Industry Past, Present & Future, And The Internet I answer questions on EconTalk
I did an interview about the industry and the Internet at EconTalk with host Russ Roberts. Russ is also a professor of economics at George Mason University, blogs at Cafe Hayek, and has written three novels that teach economics. He's also the co-creator of the Keynes-Hayek rap video. (And if your understanding of the economic meltdown that occurred needs to be enlightened, this video will do it)
In the interview we talk about the evolution of the music industry, the impact of the digital revolution, and I give my reasons for believing in the virtues and potential of the Internet in enhancing the music industry. I point out, as I have many times here in the newsletter, that the internet allows numerous artists to make money from their music and it can enhance revenues from live performances by expanding an artist's base. We also discuss the challenges facing record companies and I suggest that the full potential of the Internet as a distribution channel has yet to be fully exploited. There's a lot of ground covered, but based on the comments already posted of those who have tuned in, they've enjoyed it.
Read more about it by clicking here.
Quotes of the week
"Any artist who says they don't Google their name is a big fat liar."
-- Katy Perry, telling it like it really is."Hip-hop ain't what it used to be."
-- Lil' Wayne. No, it sure ain't. It's worse than ever."This was a really good wake-up call to calm down. I am going to stop drinking in the daytime. I can't be drinking all day ... that is not okay."
-- MTV 'Jersey Shore' show moron, er star, Snooki."My husband said, 'You are a great singer.' So, now I'm going to say I am a great singer, (but) I'm not just going on Glee."
-- Julia Roberts. No offense Julia, but who asked you to be on the show anyway?
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
'Modern Family' Appears At 9 p.m. Just As Prophesied In 'TV Guide'
NEW YORK-As it has since the time before the Dawning of Color, the wise oracle TV Guide channeled visions from beyond the veil of this world last week to foretell the Wednesday night airing of Modern Family on ABC. "
Read the rest here and laugh: oOLINKOo.
THE RADIO INTERVIEW on 'THE AMERICAN PERSPECTIVE' - From newsblaze.com
"Steve Meyer is on the front line of global music sales and distribution which he expects will soar to pocket-bursting levels. What's more, he shares his insight and ingenuity with us. Steve gives us both historical perspective and futuristic vision as he chats with Judy about the love of his work, trends of the business and his personal points of view about success, happiness and blending life with the lust for life. Steve joins Judy and helps us discover the thrill of having it all with a sense of balance and purpose. "
You can listen to an interview I did with Judy Piazza of 'The American Perspective' by clicking here: (It runs about 15 minutes)
http://www.thesop.org/index.php?id=10306.
The Blogs
Check out Jerry Del Colliano's (the founder of INSIDE RADIO) daily blog, by clicking here: http://www.insidemusicmedia.blogspot.comWebsite
Check out attorney Ray Beckerman's website at: http://recordingindustryvspeople.blogspot.com where he prints news about the RIAA's ongoing activities
TinyURL
Check out www.tinyurl.com where you can make a smaller URL that will work for any webpage you wish to link to or reference. (As you can see, I'm using it in my news stories above!)
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