@theblakemorgan: American middle-class musicians are worth fighting for #IRespectMusic

[Editor Charlie sez: Our friend and supporter Blake Morgan has an important opinion post on the bi-partisan American Music Fairness Act (AMFA) in The Hill, a long-time and influential DC insider journal. Blake tells the human story of why artists need the AMFA legislation and the #IRespectMusic campaign.]

Rep. Ted Deutch and Blake Morgan

We musicians are used to fighting. For our livelihoods, our families, our dreams. In recent years we’ve fought battles we’ve neither sought nor provoked, against powerful corporate forces devaluing music’s worth. Streaming companies, music pirates, and AM/FM radio broadcasters who, in the United States, pay nothing––zero––to artists for radio airplay.

It’s shocking, but true: The United States is the only democratic country in the world where artists don’t get paid for radio airplay. Only Iran, North Korea, and China stand with the United States in this regard. ADVERTISEMENT

Broadcasters make billions of dollars each year off our music, and artists don’t earn a penny. This impacts not only the artist, but session musicians, recording engineers, songwriters. Virtually everyone in music’s economy. 

Isn’t being paid fairly for one’s work a bedrock American value?

Read Blake’s post on The Hill and sign the #IRespectMusic campaign and tell Congress you want fairness for artists!

Do we know much about what share of average salary that consumer spends on streaming?

I ran across an interesting 2019 study by researchers at the University of Glasgow (sorry Celtics fans) and the University of Oslo that takes a deep dive into streaming (summarized in this handy infographic).

The research…shows that when plotted against the changing average salary of a US citizen over history, consumers were willing to pay roughly 4.83% of an average weekly salary in vinyl’s peak year of production in 1977, a price which slips down to roughly 1.22% of an average weekly salary in 2013, the peak of digital album sales.

The advent of streaming over the last decade, now means for just $9.99, or just over 1% of the current average weekly salary in the USA, consumers now have unlimited access to almost all of the recorded music ever released via platforms like Spotify, Apple Music, YouTube, Pandora, and Amazon.

And then there’s the environmental impact of streaming. MTP readers will recall that I’ve been on the “dirty data” tip for years and tried to discourage readers from accepting–and in my mind being deceived by–Big Tech’s misdirection play about being green. They dearly want you to believe that the what powers everything from Google searches, to YouTube videos, to Spotify streaming is magic elves running on golden flywheels transmitted over gossamer wings.

This study confirms what we’ve seen in other reporting on the pollution of data centers sucking down hydro power in states like Oregon (represented by anti-artist mainliner Senator Ron Wyden–coincidence?). The study tells us:

“These figures seem to confirm the widespread notion that music digitalised is music dematerialised. The figures may even suggest that the rises of downloading and streaming are making music more environmentally friendly. But a very different picture emerges when we think about the energy used to power online music listening. Storing and processing music online uses a tremendous amount of resources and energy – which a high impact on the environment.”

It is possible to demonstrate this by translating the production of plastics and the generation of electricity (for storing and transmitting digital audio files) into greenhouse gas equivalents (GHGs).

The research shows GHGs of 140 million kilograms in 1977, 136 million kilograms in 1988, and 157 million in 2000. But by 2016 the generation of GHGs by storing and transmitting digital files for those listening to music online is estimated to be between 200 million kilograms and over 350 million kilograms in the US alone.

So it already fails on the S (due to horrendous treatment of creators) and it’s refusal to exercise pricing power even though consumers pay so little; and the G (given Spotify’s extreme control by Daniel Ek’s supervoting stock to the exclusion of shareholders). It also looks like Spotify also falls down on the E, too, with its polluting business model. No ESG ETF for Spotify?

Not likely. The greedy Stockholm syndrome exploits everyone.

Isn’t this a crime? @silvermanjacob: Inside Jedi Blue, Facebook’s Shady Deal With Google

As a torrent of bad press consumes Facebook — or whatever the company may soon be renamed — it’s worth remembering that to become an industry-dominating social-media Goliath, sometimes you need a little help from your friends. Perhaps they’re better described as co-conspirators.

Over the past year, a series of court filings by 15 state attorneys general have exposed what amounts to secret collusion between Google and Facebook to rig the online ad market in their favor and to keep out competitors. Details keep percolating up — last week, a New York judge unsealed yet more documents shining light on the arrangement — but we’ve already learned a great deal, revealing just how far two tech giants will go to preserve their lucrative hold over online advertising. (A Google spokesperson said the claims in the suit are “baseless” and riddled with inaccuracies.”)

Read the post on New York Magazine

@EustanceHuang: Evergrande collapse could have a ‘domino effect’ on China’s property sector, AllianceBernstein says

[Editor Charlie sez: Dow Jones dropped 800 points during trading yesterday on news of what could be China’s Lehman Brothers financial contagion, 2008-style–Holy pangolins, Batman! Don’t believe every dead cat bounce. If you didn’t notice that 800 point drop yesterday, this analyst has some sobering news highlighting the need to index all songwriter royalties to rise with inflation.]

China’s “highly distressed” real estate companies are at risk of collapse as the country’s highly indebted developer Evergrande is on the brink of default, warns AllianceBernstein’s Jenny Zeng.

Speaking with CNBC’s “Street Signs Asia” on Friday, the co-head of Asia fixed income at AllianceBernstein warned of a “domino effect” from a potential Evergrande collapse.

“In the offshore dollar market, there is a considerable large portion of developers (who) are implied to be highly distressed,” Zeng said. These developers “can’t survive much longer” if the refinancing channel remains shut for a prolonged period, she added.

@digitalmusicnws: @Portisheadinfo Says SoundCloud’s ‘Fan-Powered’ Royalty System Has Boosted Their Payments by 500%

Back in March, SoundCloud introduced “fan-powered royalties,” or direct-to-artist payments based upon actual user engagement. Now, a track that Bristol’s Portishead released exclusively on SoundCloud in July has reportedly generated over six times the royalties that it would have made on streaming services with a pro-rata model in place.

Read the post on Digital Music News