MusicTank Newsletter - Sep 09

Music business issues rarely enter such a public discourse as the filesharing debate of the past decade.  Last week, Peter Mandelson’s Department for Business Innovation & Skills took a stand, announcing the Government will now consider temporary suspensions of broadband connections as a sanction of last resort.

The move is seen as necessary by many within the business, including the BPI and umbrella body UK Music, who believe this option will help meet the Government’s objective of reducing file sharing by 70-80% within 2 – 3 years.

The announcement triggered widespread commentary across the spectrum of praise and condemnation, with letters and articles continuing in yesterday’s broadsheets.

In defence of the Government’s change in tack we should point out that it is still in consultation stage (due to end on 29th September, have your say here: http://www.musictank.co.uk/reports/uk-government-statement-on-proposed-p2p-legislation) and that all ideas are indeed born drowning, with this one certainly in need of careful development if it’s to stand any chance of proving workable.

It should also be pointed out that the announcement was just about one area of Digital Britain, broadening the scope of sanctions, whereas the initiative is about a great deal more than just sanctions - new distribution models and education are also central tenets.

That said, we’ve seen little from the Government on either of these two areas, and while the Government may find it difficult to intervene in business innovation, ten years into file-sharing, the level of public education, straightforward advice and information available is pitiful.

And not everybody in the music business supports the new proposals.  As of last week, the Music Manager’s Forum was the only trade body to raise its head above the parapet to criticise the Government’s change in stance.  Yesterday however, writers, artists and producers group the Featured Artists Coalition (FAC), the British Academy of Songwriters, Composers and Authors (Basca) and the Music Producers Guild (MPG) backed the MMF in vehement opposition.

MusicTank spoke to Jon Webster, CEO at the MMF, to explore its position - you can read more in Viewpoint, below...

Meanwhile, elsewhere in this issue you can learn about MusicTank's forthcoming live industry think tank debate that looks at another area of policy and governance - the Licensing Act 2003 - the interpretation of which appears to be disproportionately affecting the very lifeblood of the industry - the emerging grass roots sector, if the recent publication of the Welwyn Hatfield Live Music Forum's St Albans case study is anything to go by (http://www.musictank.co.uk/reports/licensing-act-2003-case-study-st-albans-district-council).  

This case study is a result of research into St Albans District Council licence register, interviews with musicians, music promoters and business owners in St Albans and was commissioned following many alarming reports received by the Forum from musicians in the neighbouring district of St Albans.  More on this in MusicTank Lounge, below.

With a panel that includes DCMS Select Committee Chairman, John Whittingdale MP and musician, independent campaigner and St Albans report co-author John King, this session will consider the impact that the Licensing Act 2003, Form 696 and noise abatement orders are having on small venues.

Editorial by Sam Shemtob

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OUT & ABOUT: MusicTank events

VIEWPOINT: The MMF's position on Mandelson's decree

INDUSTRY DIARY: Other industry events

MUSICTANK LOUNGE: Event archive & reports

MERRY-GO-ROUND: Industry announcements

Please remember all MusicTank events MUST be booked and paid for in advance!  Become a member of MusicTank for just £30 per year and enjoy privileged discounts on all MusicTank events...

http://www.musictank.co.uk/about/membership-benefits

SEPT 22: LIVE MUSIC: LICENSED TO THRILL?

http://www.musictank.co.uk/events/live-music-licensed-to-thrill

Despite live music revenues overtaking record revenues and top end tour income on an upward trajectory, all is not rosy among the grassroots – the sector that above all needs to be nurtured to facilitate continuing growth.

This session will investigate the impact that the implementation of the Licensing Act, Form 696 and noise abatement orders are having on small venues - and we shall also hear why supporters of the Act believe it is increasing participation in live music.

The creative industries have been pinpointed as a vital growth area for the British economy, and with the UK in the depths of the first recession in sixteen years, creating a healthy environment for musicians to hone their craft and build their fanbase is paramount to our future growth and prosperity.

MusicTank asks: can a happy medium be found for developing and promoting new musical talent while safeguarding the interests and needs of the wider community?

PART 1: 18.30 - 19.40 - The Licensing Act & Met Police form 696

Keynote: John Whittingdale MP, Chairman, DCMS Select Committee / MP Maldon & Chelmsford East

Panellists: John King (Professional Musician / Independent Campaigner); Horace Trubridge (Assistant General Secretary, Live - Musicians' Union); others tbc

PART 2: 20.10 - 21.30 - Noise Abatement

Keynote: (tbc)

Panellists: Kent Davis (Owner, the Rainbow Pub, Digbeth); others tbc

Chairman: Keith Harris - MusicTank/Keith Harris Music Ltd/PPL

DIARY:

Date & Time: 22 Sept '09 | 18.30 - 21.30hrs | | Venue: PRS for Music, Copyright House, Berners Street, London W1 | Cost: £25 MusicTank Members | £30 Trade Body | £35 Full Price (Tickets incl. free post-event transcript and drink on arrival)

Full details & booking: http://www.musictank.co.uk/events/live-music-licensed-to-thrill

Please remember all MusicTank events MUST be booked and paid for in advance - strictly no walk-up on the day!

Become a member of MusicTank for just £30 per year and enjoy privileged discounts on all MusicTank events... http://www.musictank.co.uk/about/membership-benefits

MusicTank recently spoke to Jon Webster, CEO at the MMF, to explore its position in opposing Lord Mandelson's recent 'last resort' decree on persistent filesharers...

MT: In your statement you mentioned that you believe that proposed legislation will not achieve the desired results of significantly reducing illegal filesharing. Care to explain yourselves?

JW: The technology develops so fast that, by the time Ofcom come up with something about what they are going to implement, then go through consultation, draw up legislation and then comes into effect, it’ll make no difference, social change comes so fast that people will be consuming music in different ways, the legislation won’t be relevant.  It’s all just pr for them at this moment in time.

I remember when I was at the BPI a few years ago, they laughed at the idea of a celestial jukebox – we have that now in Spotify – that just goes to show how quickly these things move.

MT: Your other point was education, do you want to implement social change?

JW: Social changes take years to come about, we’d like to see simple messages in place whenever someone buys or first starts up their computer; so that innocent people know how to protect themselves from people hijacking their connection, letting them know how to turn off filesharing, and just educating the benefits of safely using a computer system.

The music business has just been paying lip service to education thus far.  Three years ago we asked people to start an education programme but nobody wanted to do it, so there’s been nothing on it and people have gone and done their own thing because they don’t know that this free service is legal whilst another is illegal.  There’s been no guidance.

MT: What else do you see as a problem?

JW: Online, everything seems to be muddled.  People who are streaming on Spotify don’t see the difference between that and listening to music on the radio, but the streaming rates are much higher on Spotify than they are on radio.  For example, if you earn £36 for a play to 7 million listeners on Wogan, that’s a lot cheaper than if your track got 7 million streams on Spotify – that’s the reason these services will struggle.

MT: Until very recently you were on your own within the industry over Lord Mandelson’s comments, though that has now changed. What can be done to bring the business together?

JW: Everybody is fighting from entrenched positions and we all see things too black and white.  People think that coming out partial to any other side is a sign of weakness and they get jumped on by everyone on the opposite side.  It isn’t black and white; people need the chance to debate.

MT: Where could people debate though?

JW: We should debate internally and find out why everyone’s position is what it is.  The BPI stopped taking action against individuals because it was not cost effective and didn’t seem to deal with the problem, but now they are supporting something that will result in disconnection of filesharers. 

But proving this will no doubt be open to large and expensive court cases with people appealing this for years.  Consumer Focus’ point is that this is getting close to being guilty until proven innocent in a lot of these situations, and that opens a large can of worms.  We’ve seen this in Hull recently where (Kingston Communications) had to backtrack very quickly when they were about to disconnect filesharers.

UK Music is providing a platform for debate to a certain degree, but there isn’t enough debate to bring people together and sort things out.  We should be talking to all the stakeholders as well - the time that the ISPs did come and talk to UK Music was very productive and I believe that they’ve asked for another meeting again and I think we should have it.  We have to involve them.

MT: So what do you see as a solution?

JW: We need to admit a few things.  First, there will always be people that fileshare no matter what, the hardcore who’ll keep doing it.  But just like the unfounded ‘home taping is killing music’ concern of decades ago, this hardcore won’t kill music either.  Second, in the middle ground we’ve completely failed to educate people about protecting themselves - even personal files like bank statements and photos.

Third, the labels need to admit that some legal and some illegal filesharing is not necessarily a bad thing (MusicTank hears it’s common practice for at least one major to not watermark pre-release CDs for albums that are expected to sell under 150,000 units).  They also have to admit that some of the problems with declining CD sales are down to tired formats and other pulls on people’s entertainment purse, rather than filesharing.  And we all, publishers in particular, need to get our act together on licensing.

We each have to move from our entrenched positions. That’s the challenge.

Interview by Sam Shemtob

If you have a view on this or indeed anyother topic, MusicTank would like to hear from you.  Please send your reply to : mailto:editor@musictank.co.uk

NOTE: Consent for online publication of any and all contributions received will be deemed to have been given unless clearly marked 'Not For Publication'

CALLING ALL ARTISTS & BANDS - ARE YOU READY FOR SXSW AND MIDEM?

Targeting South By Southwest (Texas) and MIDEM (Cannes), these briefings are an opportunity to find out more about these key industry events, how to get yourself involved, how to get the most out of them and what support is available...

Come and talk to the experts at one of UK Trade & Investment’s free September '09 briefings, with UKTI International Music Business Specialist Phil Patterson and guest speakers including Una Johnston from SXSW and Javier Lopez of MIDEM. Dates are as follows:

LONDON: MIDEM | Wed 9 Sept 11.30hrs – 13.30hrs
LIVERPOOL: SXSW | Tue 15 Sep 13.30hrs - 15.30hrs
LEEDS: SXSW | Tue 15 Sept 18.30hrs - 21.00hrs - booking essential at http://www.musicyorkshire.com
LONDON; SXSW | Wed 16 Sept 10.30hrs – 12.30hrs
CARDIFF: SXSW | Mon 21 Sept 17.00hrs - 19.30hrs
BRISTOL: SXSW | Tue 22 Sept 13.00hrs – 16.00hrs

More... mailto:creative@uktradeinvest.gov.uk

SEPT 09: AIM MASTERCLASS - MARKETING ON A SHOESTRING

AIM's next masterclass event will examine the art of successful music marketing on a shoestring budget. Aimed at all sizes of label, from those with no marketing budget to larger ones looking to get more results from their marketing spends - the event will bring together some of the music industry's most experienced and successful marketeers to share their tips and techniques.

The event will be split into 3 parts:

1. Music Marketing in 2009 -
Presented by music marketing guru Mark Mitchell, the first session will give attendees the chance to learn about the latest music marketing trends, what has changed since last year, where things are going and what interesting marketing ideas have delivered results for artists in the last 12 months.

2. How Did We Do It? Marketing Campaign Case Study Presentations -
The second section of the evening will see a marketing expert from a top independent label give an in-depth case study presentation of a successful marketing campaign that they have ran on a shoestring budget. Case study will be announced soon!

3. Live Marketing Case Studies -
To conclude the event, a selection of marketing gurus from AIM's membership will be given 3 real case studies of forthcoming releases from attending labels, and asked to offer marketing advice and come up with a basic marketing plan for each.

Confirmed speakers incl. Stephen Hallowes (Beggars Group / XL); Steven Hill (Warp); Mike McNally (McNally Consulting); Ben Watt (Buzzin' Fly ); others tbc.

DIARY - Date/Time: Wed 09 Sept / 18.00-22.00 | Venue: PRS for Music, 6th Floor Boardroom, Copyright House, 29-33 Berners St, London, W1T 3AB

COST - £10 AIM Members/Friends of AIM | £30 non members. 20% off full ticket price for members of affiliates. Prices incl. VAT & drinks. Tickets limited.

More... http://www.musicindie.com/242.asp?sub=Events

MMF, MPA & MMF TRAINING - ARTIST, MUSIC, CONTENTS & RIGHTS MANAGEMENT PROGRAMME

SEPT 14:  Module #1 - 'THE REAL 360 DEGREES - INCOME, ACCOUNTING & VALUE CHAINs'

Creation to consumption: the who, what, where, how & when of music use today. Who's contracted to whom?; Who pays & who doesn't: implications & options; Royalty streams & cash flow: accounting & payment, duties & responsibilities, examples & issues; Income participation: roles & rewards. Understanding the 'new' business models; structuring & defining your own.  Speakers tbc.

DIARY - Date/Time: Mon 14 Sept / 18.30 - 21.30hrs | Venue: PRS for Music, 6th Floor Boardroom, Copyright House, 29-33 Berners St, London, W1T 3AB

COST PER MODULE - MPA/MMF members & PRS Music Staff: £30.43 | AIM, APRS, BASCA, BPI, IAMA, MPG & MU members: £47.83 |Non-members: £65.22
All prices subject to VAT @ 15%.

OCT 12: Module #2 - 'Taking Care of Business: Money Management, Contracts & Negotiation'

NOV 09: Module #3 - 'Live Music & International Touring: Decisions, Relationships & Results'

DEC 14: Module #4 - 'Artist & Brand Development: Digital Marketing Update'

More... http://www.mpaonline.org.uk/Events/ArtistMusic_Management_Professional_Development_Programme_2009.html

NEW TO SITE:

Event Archive

MusicTank event podcasts and transcripts can be found in both the Podcast section on this site, and on events pages themselves.  This premium content is only available to MusicTank Members who pay a small annual fee - £30 -  to subscribe.  Membership confers other benefits, too.  To join or to read more about our Membership offer:

http://www.musictank.co.uk/about/membership-benefits

Media Composers: New Rules Of Engagement? - 4th June

http://www.musictank.co.uk/events/media-composers-new-rules-of-engagement

• Did you attend and would you like to contribute to the debate?  If so, Twitter #MCdebate

STEPHEN NAVIN: "Unfortunately, the complexity of the online environment means responses to market changes have to be good.  ITV are struggling and are on the brink in a very competitive market and, even though TV companies are struggling in what is a highly competitive market, cost is not the only essential factor – quality, choice and the ease of getting a licence are just as important."

CHRIS SMITH: "From a writing point of view – anyone is indeed free to enter any contract.  But this needs to held up to scrutiny, in practice people are not free to enter a contract. Increasingly, many writers are compelled to assign their publishing rights as a pre-condition of receiving a commission."

JONATHAN GOLDSTEIN: "There is no option for composers to have rights in my experience.  One person I spoke to told me that he was asked for an ‘unlimited amount of music’ from a client and then lost the job because the client was fed up with his questions about rights and usages.  Music has become a soft target, perhaps influenced by the US ‘work for hire’ regime...?"

TERRY DEVINE KING: "I’ve written library music for 20 years.  At Audio Network, I can honestly say that my PRS revenues are quadruple what I have got from mechanical rates.  Broadcasters report their PRS payments have risen sharply because they’re using this model which makes music cheaper to use.  So its use has gone up, with resulting higher royalty payments made."

Millennials & The Social Media Explosion - 7th July

http://www.musictank.co.uk/events/millennials-the-social-media-explosion

• Did you attend and would you like to contribute to the debate?  If so, Twitter #SMdebate

STEVE LAWSON: "Most people find you on the web not because you’re good, but because you’re interesting."

"We keep thinking of bit torrents as being the death of CD – it’s actually the new radio."

STEVE BOWBRICK: "An important issue we have to get past is that if you’re a board member in a Plc, it’s very difficult to set out a position that the music industry might be smaller in a few years time."

MARK SELBY: "The importance of social media as a way to interact with rather than it being just another distribution channel or pushing/broadcasting a message, the opportunity to listen is incredible."

"Industry needs to regain its confidence, without resorting to antagonising emerging consumption models and the audience."

UMAIR HAQUE: "To be productive we need new institutions and rules.  Rights are like rules.  How do we sell this stuff?  We need better rights and new institutions to do this.  The rights left over from the 20th Century are an incredibly bad match for new markets, networks and communities."

"What does a ‘hit’ mean?  A blockbuster is something people buy because it’s heavily marketed.  The music industry relies on blockbusters.  Historically, there’s been an over-investment in marketing and an under-investment in the craft – quality and production.  Music will not see the end of hits but it will see the end of blockbusters."

"Context is king.  Context is meta information – information about stuff.  We need to do a much better job of generating context about the music we make.  Social media is the engine of context.  If we only see these as distribution channels for the same old content, we’re going to fail to understand what their power really is."

REPORTS

Adding Up The Music Industry For 2008

In the autumn of last year, PRS for Music published 'Recession and Royalties' which asked a timely and pre-emptive question: "If the UK economy is about to enter a downturn, what does that mean for music?"  That paper also provided a simple table showing what’s at stake.  By adding up the industry for 2007, total revenues came to £3.2 billion with an 80/20 rule in place: eighty percent of revenue came from the consumer, and the remaining twenty percent from business-tobusiness.  That table was an important first stab at working out what music was worth in the UK.

Here, PRS for Music revisits that table to provide a more insightful understanding of how to 'add up the music industry’ for 2008.

Before downloading the report and delving into the details, there are two headline figures to consider: Firstly, the value of music was calculated to be £3.6 billion for 2008. Secondly, this represents an increase of 4.7% on the revised 2007 figure of £3.5 billion. Put more bluntly, the pie just got bigger.

More... http://www.musictank.co.uk/reports/adding-up-the-music-industry-for-2008

[Courtesy of Will Page/PRS for Music]

Licensing Act 2003 - Case Study: St Albans District Council, 2009

This Welwyn Hatfield Live Music Forum report is a study of St Albans District Council’s implementation of the Licensing Act 2003 and the impact on live music.

This report examines St Albans Council’s policy and ethos relating to live music; Premises licence conditions relating to live music; The lawfulness of those conditions; The impact on live music and culture.

More... http://www.musictank.co.uk/reports/licensing-act-2003-case-study-st-albans-district-council

UK Government Statement On Proposed P2P Legislation

The thinking on the process supporting the objectives and obligations of the June 16th consultation paper (following publication of Digital Britain) has developed. This paper updates on these developments and invites public comment, extending the deadline for responses to September 29th 2009.

More... http://www.musictank.co.uk/reports/uk-government-statement-on-proposed-p2p-legislation

MUSICTANK POSTS & TWITTERS

MusicTank has a facebook Group and a Twitter feed.  Visit us at:

   http://is.gd/mwBa/musictank/facebookgroup

   http://twitter.com/MusicTank

DOWNING STREET PETITION

Word reaches us from Generator's Dave Cross concerning the Downing Street Licensing Act petition that calls for the decriminalisation and exemption of small-scale performances in schools, hospitals, restaurants and licensed premises...

The petition calling on the Prime Minister to stop using the Licensing Act to criminalise live music and to implement amendments that would exempt small gigs has gained over 7'500 signatures since launch on Monday, 27 July.

"We the undersigned petition the Prime Minister to stop criminalising live music with the Licensing Act, and to support amendments backed by the Culture, Media and Sport Committee, and the music industry, which would exempt most small-scale performances in schools, hospitals, restaurants and licensed premises."

More... http://petitions.number10.gov.uk/livemusicevents/

SELL YOUR RIGHTS

The University of Frankfurt have likewise been in touch with details of a new initiative that seeks to bridge the gap between the free and uncontrolled usage of digital content (such as music) and the fair and appropriate revenue for those people creating that content. 

To achieve this goal a new distribution model, based on a threshold pledge system (http://en.wikipedia.org/wiki/Threshold_pledge_system), has been developed and is currently in closed-beta testing.

Sell Your Rights are looking for web-oriented and forward thinking bands, musicians and labels that are willing to give this idea a shot.  The basic idea is simple and a video demo can be found here: http://www.vimeo.com/5913870

In their words...

Content creators, such as musicians, define an amount of money for which they will release their product (e.g. an album) under creative commons (CC) license. SellYourRights enables them to collect that cash in order to set their content free.

Creators may choose any of the six CC standard licenses available.  Through sellyourrights.com creators can create their offer and spread it throughout the web.  Their offer always consists of the money they ask for, a sample of the product, the license under which they offer the release, the period for which the collection will be running and a more detailed product description.

Content creators can directly reach out to their fans to collect the cash they need wherever they meet them online (e.g. their MySpace, Facebook, blog, etc.).  This is done via widgets which are very easy to customise and to embed throughout the web.  Through each widget, fans can get engaged to contribute to the offer’s release.  Fans are free to contribute any amount of money they feel is appropriate.  Each single contribution is directly authorized via Paypal or credit card, but will only be collected in case of successful release.  All contributions are aggregated and held in escrow for the duration of the collection period.

If the amount asked for has been reached at the end of the collection period, all contributions will be collected and the content (e.g. music) will be released under the license promised.  If the amount asked for cannot be collected, it’s for the content creator to decide: either they accept the lower amount and release the product as promised,  or they can decide not to release.

In the first case Sell Your Rights acts as if the amount asked for has been reached and collects all payment promises.  In the second case, all payment promises will be cancelled, monies are not collected and the product will not be available under CC-license.

More... mailto:bj@sellyourrights.com

NOTE: MusicTank is not connected with Sell Your Rights, nor does it endorse nor denounce Sell Your Rights or the model.  MusicTank always recommends that rights holders seek independent legal advice before entering into any and all agreements.

If you have any queries regarding any of our events or activities, please call Jonathan on 020 7915 5412, or e-mail: info@musictank.co.uk

The views and opinions expressed are those of the author and are not necessarily condoned or shared by MusicTank. MusicTank is a non-profit organisation owned and operated by University of Westminster. University of Westminster is a charity and a company limited by guarantee. Reg Number: 977818, England. Registered Office: 309 Regent Street, London, W1. MusicTank is based at University of Westminster, Fifth Floor, Copland Building, 115 New Cavendish Street, London, W1W 6UW.