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Don’t Let the Big Record Labels Take America for a Spin
Townhall.com ^ | January 23, 2022 | Gil Gutknecht

Posted on 01/23/2022 4:24:15 AM PST by Kaslin

Another rich and powerful interest is begging Washington for special privileges under the guise of helping the little guy. This isn’t all that new. We saw this in the aftermath of the 2008 recession when the big banks argued for greater financial regulations that would have limited their future competition to “protect the interests of everyday Americans.” Or so they said. This is akin to some of the wealthiest individuals and American companies who are selling economically questionable “green” energy initiatives…that just happen to pad their bottom line. And now, we’re seeing it again from the super-wealthy record labels, shamelessly pushing a new money-making scheme that will limit artist promotion and exposure to — you guessed it — “preserve the integrity of the music industry.”

The record labels claim that by imposing a new fee on radio airplay, their bill — The American Music Fairness Act — will ensure that “artists get the compensation they deserve.” The problem with this assertion is that the labels themselves are what’s wrong with artists’ revenue streams today. They have been for a long time.

Nearly twenty years ago, the late Michael Jackson made this point crystal clear when he said, “The recording companies really, really do conspire against the artists — they steal, they cheat.” Around that same time, the Dixie Chicks agreed, accusing their label of “systematic thievery” by underpaying the band $4 million in royalties they were entitled to.

For years, intellectual property theft, inequities in streaming payments, and other concerns overshadowed artists’ issues with the labels. However, in recent years, innovation and groundbreaking bills such as The Music Modernization Act resolved most of those concerns. The labels themselves remain one of the last major thorns in the side of today’s music creators.

There is a genuine lack of transparency concerning the formulas used by these multinational Goliath’s in determining disbursements (or lack thereof) to artists. There is a growing lack of trust. No wonder artists are left scratching their heads as to whether they’re being short-changed. Many believe they are receiving the short end of the revenue stick.

Their fears have been justified by several court rulings.

Consider just a few cases that have been adjudicated. In 2015, Dr. Dre won a legal battle against his label. A federal judge found that the record label was underpaying him while illegally selling the rights to his album “The Chronic.” Martha Davis of the ‘80s rock band The Motels similarly sued her label for underpaying the royalties due their group, as did A Day to Remember for breach of contract.

Of course, we will never know how many other artists have been shortchanged.

This problem isn’t confined to just the United States. In Great Britain, the UK Parliament has raised concerns regarding the relationship between record labels and artists. They too are asking specifically whether the artists are getting their fair share of the proceeds.

The record labels have become so at odds with their artists that many bands are now foregoing the traditional label route. With all these ethical questions floating around this industry it’s fair to ask, why would Congress even think about passing legislation granting them even more privileges and power?

The major record labels have enormous market power now. The recorded music sector is dominated by a handful of huge multi-national corporations. The largest three labels account for roughly 70 percent of all recorded music. Their market valuations dwarf the GDP of many small nations. Rather than scheming to persuade Congress to help them secure new revenue streams, perhaps the executives at the major labels should first clean up their own houses. A little sunshine and transparency would ensure that artists are properly compensated for their creativity and work.

The American Music Fairness Act is but another wolf in sheep’s clothing. It will do little to address some of the major problems confronting the recording industry. This bill won’t help the artists or the general public. Congress should treat it as such and let the big labels know that this legislation strikes all the wrong chords.


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: music; musicindustry; musicroyalties

1 posted on 01/23/2022 4:24:15 AM PST by Kaslin
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To: Kaslin
I’m really out of the new music scene, and haven’t bought new music for over 20 years. I never get tired of what is in my collection. I do like live music.

but with digital, who buys music anymore?

2 posted on 01/23/2022 5:04:41 AM PST by FatherofFive (We support Trump. Not the GOP)
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To: Kaslin

The Great Reset is not new. It is very very old. It’s goal is to demolish democracy and put all power, all property and all wealth in the hands of a the new dukes and earls and counts of the modern world. And they want to do it the old fashioned way - through the maintenance of Royal favor and patents Royal granting monopolies to the favored.

The growth of intellectual property laws is not to protect the little guy. It’s to protect the already wealthy and powerful.


3 posted on 01/23/2022 5:10:46 AM PST by AndyJackson
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To: Kaslin

I wonder how many of these ‘artists’ supported Trump?


4 posted on 01/23/2022 5:25:44 AM PST by BobL (I shop at Walmart and eat at McDonald's, I just don't tell anyone, like most here.)
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To: FatherofFive

“but with digital, who buys music anymore? “

Same here, I have all that I need in this life. As to the Labels, my beef with them was paying $5 for a 25 cent cassette, only to have to replace it 5 times because it was a piece of crap. I could get the $5 part, once, but not multiple times.

So when Napster came, and the Russian site, I was set for life...and got my revenge.


5 posted on 01/23/2022 5:28:12 AM PST by BobL (I shop at Walmart and eat at McDonald's, I just don't tell anyone, like most here.)
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To: Kaslin
It's all tied into the Hedge Fund ATMs, IHateRadio, Cumulus, and the rest of the major radio media owners. IHeart owns Live Nation and they almost monopolize live performance now, and obviously the radio station playlists are dominated by their “consultants and programmers” who play “their hits” and force their music down the throats of the listeners. To give you an example of how they operate, in our Market IHeart owns 5 radio stations, they have NO ONE live (or local) on any of those 5 stations. They have one studio that hasn't been used since March of 2020, and the previous GM stated to us that “the national programming is “so much better” than anything local. It, in MHO, is a violation of the principle that the stations are licensed to serve the public interest..
6 posted on 01/23/2022 5:47:54 AM PST by Shady (The #JihadJunta is now a Dictatorship, there are no more “laws..”)
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To: Kaslin

The problem with this assertion is that the labels themselves are what’s wrong with artists’ revenue streams today. They have been for a long time.
Speaking from experience being in the industry most of my life. They ruined it.


7 posted on 01/23/2022 5:55:04 AM PST by ronnie raygun
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To: FatherofFive
...but with digital, who buys music anymore?

I'm finding CDs for 25 cents now. They may even include a DVD. That allows me to expand into things I may have turned down in the past. Still out there huntin'.

8 posted on 01/23/2022 5:56:29 AM PST by Libloather (Why do climate change hoax deniers live in mansions on the beach?)
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To: BobL

“So when Napster came...”

I still have many tracks from Napster, and sometimes I find that I’ve got a version that isn’t available anywhere else. I believe to this day that somebody dumped a radio station’s complete digital library onto Napster, in the last few months of the site’s life.

Artists deserve to be compensated, certainly. Yet, we live in a time where, an artist can do one performance and receive lifetime royalties for it. For centuries, performers were paid to perform - but in today’s world, a little effort can get you a lifetime income stream. I’m not sure if that’s an improvement.


9 posted on 01/23/2022 7:29:54 AM PST by Not_Who_U_Think
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To: FatherofFive
I haven't bought music in over a decade but I do spend $10/mo to stream it. It's actually an excellent deal as I can discover new music as well as listen to my old favorites - all on demand.

When I was buying music, I'd average 3-5 CDs per month. Probably averaged about $50 a month in compact discs. So the streaming fee is a real bargain as you have unlimited access to the entire catalog.

10 posted on 01/23/2022 7:36:37 AM PST by SamAdams76 (I am 33 days away from outliving John Hughes)
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To: Not_Who_U_Think
Live performances is where the real money is at for music artists. People will pay upwards of $100 to see their favorite artist in concert.

This is why aging acts like The Rolling Stones, Bob Dylan and U2 still drag themselves out on the road. This is where the big money is.

Instead of trying to grab a penny or two every time one of their songs gets streamed or played on the radio, they should be trying to get their songs played or streamed as much as possible as that exposure will drive people to their concerts.

11 posted on 01/23/2022 7:47:33 AM PST by SamAdams76 (I am 33 days away from outliving John Hughes)
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Comment #12 Removed by Moderator

To: Kaslin

Google’s Youtube is the biggest content stealer. They allow copyrighted tv, movies, songs to be used and they collect ad money.

It is easy to download anything there with free software.


13 posted on 01/23/2022 10:11:01 PM PST by minnesota_bound (I need more money. )
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To: Kaslin

Hollywood / the entertainment industry are made up of many thieves. The music industry is no different then hollywood in that an act can sell millions of copies but the members of the act get no money.

Hollywood accounting
https://en.wikipedia.org/wiki/Hollywood_accounting


14 posted on 01/23/2022 10:28:40 PM PST by minnesota_bound (I need more money. )
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