Warner To End Free Streaming of Its Content 278
eldavojohn writes "If you have a license to stream content for free from Warner, be aware: Warner has announced plans to cancel streaming licenses. Major sites such as Last.fm, Spotify, and Pandora may be affected — Warner has not yet spelled out whether streaming restrictions will apply to existing licenses, or only to future ones. Warner's CEO Edgar Bronfman said, 'Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed.' You might contend that Warner gets a cut of the ad-based revenue these free streaming sites take in. While true, Bronfman contended that this revenue comes nowhere near what they need in compensation for each individual's enjoyment of each work. The article quotes spokesmen for other labels who disagree with Warner's stance, however. Music's digital birthing pains continue."
Arguing with the Internet (Score:4, Insightful)
>revenue comes nowhere near what they need in compensation for each individual's enjoyment of each work
Then they won't get anything.
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"revenue comes nowhere near what they need in compensation for each individual's enjoyment of each work"
Then they won't get anything.
I still buy a lot of CDs in the bargain bin at Half-Price Books. I wonder how much compensation they think are they getting every time I listen to my LEGALLY PURCHASED $1 or $2 CD that I bought third-hand?
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I'm more sinister than you. I buy my CD's USED... Yup it's the same as slapping food out of the executives children, and sucker punching their mothers.
Buy them used, it pisses off the music industry more than piracy does.
Re:Arguing with the Internet (Score:5, Interesting)
Exactly. The value of your product is whatever the market decides it is worth. Turns out that for streams of bits this value is "not much".
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Last.fm in Canada (Score:2)
I live in Canada, so I actually pay for last.fm. I think $3/m is still a great deal, considering how much I listen to it. However, I wonder if last.fm would have statistics on how many customers they lost by charging and whether it was worth it or not.
I subscribed at US$3/month to last.fm and it's probably the best value I get out that three dollars. On the other hand, its the thin end of the wedge as far as the finances go - I've heard artists and music I would never have discovered otherwise. Bad news for the big media companies though - I try and buy CDs direct from the band or as close as I can get. No point paying $30 on amazon.ca when I can order it direct from the artist for $15 including shipping.
One last point - I have become very sensitive to
Re:Arguing with the Internet (Score:4, Insightful)
Definitely one of my favorite quotes from Civ IV
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If they think losing money to free internet streams is bad, just wait until he hears about this new technology [wikipedia.org]. The music industry doesn't stand a chance.
Do they hope legal purchases will fill the void? (Score:5, Insightful)
...because I'm pretty sure this will only boost piracy...
EMI (Score:4, Informative)
Maybe they're trying to imitate EMI's recent success.
For those who don't know, EMI, who own the likes of the Beetles records and so forth recently just announced a £1.5 billion loss over the last financial year. They currently look like they could very well be heading to bankruptcy.
At least if they do end up that way, that's what, 1 down, 3 to go?
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I'm not a big torrent guy, and my wife only watches what is either on Hulu or gets caught by our DVR. Unless there are rave reviews for some show on cable, we don't see it, and don't care to take the time to find it. Music has become very similiar in its form of transmission. If I hear about a band directly from a f
Just a question, and thought.. (Score:5, Interesting)
Say I had a bunch of bits on my server. Say those bits were recorded from people with talent and "permanently" placed on my server. I also have the right to sell those bits to whomever wants them.
The best part here, if you want to buy my bits, I send you a duplicate copy at next to no cost to me. Now you sell those bits or make money in/directly from them, I get a cut.
Now say a site out there wants to stream my bits to non-paying customers, but, I could see _some_ revenue from advertisements your site runs. How is this a bad thing for me as the bit holder? How is this hurting me?
Sure, I could let others stream my bits and get more money from them as they might have higher profit yielding business models. But in the end, site y streaming my music with advertisements isn't really going to hurt my profit from site x that charges an up-front fee (radio is unreliable if you want to hear x and y songs).
I guess my open question, to the recording industry is, if you can stream your bits to everyone and expect _some_ compensation from each, why wouldn't you want _everyone_ to start offering your products at whatever profit they can gleam for you?
If you're worried about piracy, well, that boat sailed a long time ago.
Profit is profit. You're not making a physical object that costs you x dollars. You're allowing others access to your bits that cost you next to nothing to duplicate (although, I know it costs _something_, it will be a lot less than physical items).
Obviously, that was rhetorical as the Recording Industry will never respond to me. But my own conclusion comes out as simple control, or at least their own illusion of control.
*Paying* Pandora Member/Customer
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You get an n% cut from reseller A.
You add reseller B, and you get an (n/2)% cut.
Customers move from reseller A to reseller B.
Your revenue drops.
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And if reseller A was too expensive and I would never sign up with them but reseller B was in my price range? That's profit gained, not lost.
If the only source you allow to sell your items is out of a large enough percentage of the populations price range, you're not going to sell that much. But if you allow the price to drop, you can gain more customers and potentially more profit.
Why sell one item at a million dollars when you can sell 10 million of the same item for two dollars? Especially when that i
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On the other hand. If reseller B's volume is three times reseller A's. Then your revenue goes up.
And more than likely the only way reseller B is going to get the deal that allows B's cut to the publisher to be (n/2)%. Would be to convince them that they can deliver enough volume to more than make up the smaller per song/album share.
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duplicating the bits might not cost very much, but creating them does. studio time, producer fees, etc aren't cheap. i work near a music studio and pass it by on the way home. once in a while i see musicians hanging out. one time I think i saw the Foo Fighters going in and out, but i wasn't a big fan back then and didn't recognize them. another time a few session guitarists walked out and headed toward the subway walking in front of me. and they talked about how some guy they know tried out for The Smashing
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The creation costs are there, but relatively trivial. And much, much lower than it was a few years ago.
The real expense is in drumming up interest in your bits, rather than somebody else's. The drop in the cost of creating the bits means that everybody's got them. Some are good, most are bad, but getting yours to stand out is incredibly hard.
Despite what music fans like to think, they don't instantly glom on to things that they like. Yes, I'm sure YOU do, Mr. Music Fan. But if you've ever tried to mark
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Maybe they should hire cheaper producers and engineers.
Or here's a novel idea: Just put an artist in a room, with mic, and record direct to the hard drive. It doesn't get any cheaper than that, and it's how it used to be done back in the 1960s and earlier.
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I'm also a paying Pandora member, and this decision just means that I won't be hearing Warner music.
Oh well.
20th century economics of artificial scarcity... (Score:2)
The big media companies are still thinking in 20th century terms of creating scarcity and profiting from standing between people and what they think they want. The biggest challenge of the 21st century is the irony of technologies of abundance in the hands of those thinking in terms of scarcity, as you gave an example of. The irony goes for media publishers, who want to be compensated every time someone enjoys themselves and prevent others from being happy, rather than everyone just help each other be happy
This is what's keeping me from paying for Spotify (Score:5, Interesting)
I use Spotify a lot. But there's one huge problem: If Big Content pulls out then Spotify will wither and die. And if they do then my playlists, which contain the most valuable information for me, are also doomed. This is huge problem.
If I spend countless hours listening to music and discovering new artists without the ability to export my playlists in some open format (just the metadata, not the songs themselves), I'd get totally pissed if I can't access them any more. So as long as Big Content is threatening to pull out of these services (which apparently still pay more than radio from what I've heard) I'm not inclined to pay. I can always get the tracks themselves through some other service, but only if I know which they are.
I wish they would just friggin stop shooting themselves in the foot, and stop treating customers like the enemy. But I'm too idealistic, I guess...
Re:This is what's keeping me from paying for Spoti (Score:4, Informative)
Spotify denies that they're losing Warner.
To be clear WMG is not pulling out of Spotify. Media is taking things out of context. So don't worry-be happy :
http://twitter.com/spotify [twitter.com]
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I smiled today, I must owe somebody money. (Score:5, Interesting)
I guess the question is, what amount of money would he say is the right amount of "compensation" for each individual's enjoyment of each work? Because very few of these streaming services are making much money at all, and while I know executives in his industry have the feeling of "If we cut off access, people will pay us 100x more to listen to it! They'll be dying to listen to our music!" (how well did that work for online newspaper sites that decided to go behind a paywall?), the reality is, most people I know that enjoy listening to Pandora or last.fm would be perfectly fine if everything of Warner just dropped off it - they'd just continue listening to whatever it serves up on the various stations they've created and enjoy. They certainly wouldn't start paying big bucks to a Warner Music Station. The labels have tried that, they lose their shirt every time.
Re:I smiled today, I must owe somebody money. (Score:5, Funny)
There's quite a lot of music tracks these days that cause me discomfort when I hear them. As this is negative enjoyment, does that mean the music industry owes me money?
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(Yeah, yeah -1 redundant IDC.)
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Will I be compensated if I do not enjoy music and still have to listen to it? I thought so.
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the reality is, most people I know that enjoy listening to Pandora or last.fm would be perfectly fine if everything of Warner just dropped off it - they'd just continue listening to whatever it serves up on the various stations they've created and enjoy.
This seems like it should be of at least *some* concern to record labels. People use sites like Pandora to discover new music that they might like. Pull your music from it, and people won't discover your music. They'll discover other labels' music.
They may as well be telling radio stations to stop playing their music, telling MTV to stop showing their videos. Does MTV show videos ever anymore? Is there a channel that does? I don't know. I don't listen to the radio either. If I find new music that I
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I like this line..."Bronfman contended that this revenue comes nowhere near what they need in compensation for each individual's enjoyment of each work" - it's a complete summary of the way the labels are thinking. Each time you do something - anything - that resembles enjoyment, their feeling is that somebody - somewhere - should be getting money from you. (...) I know executives in his industry have the feeling of "If we cut off access, people will pay us 100x more to listen to it! They'll be dying to listen to our music!"
Flip that statement around, and you're only willing to pay for something when you enjoy it. The more you enjoy it, the more you're willing but not inclined to pay for it. So if you offer it real cheap, many people will listen but because the ad revenue is so little you make less in total and you could make more by charging more. 10,000 fans willing to pay 0.65$ (+ 0.34 to Apple) at iTunes = 6500$ is still more than 10,000,000 times played at Spotify at 0.0002$/play = 2000$. Yes, the payouts have really been
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>>>Consider that this is an industry that sells you a ringtone, then says you owe extra money when your phone rings because you just broadcast music in public. Stunning.
>>>
Saying it is okay.
Bribing the politicians to give them the legal right to get paid for that "public performance", or else send you an extortionate letter for $5000, or drag you to court for a $100,000 fine......... that's the real problem.
These corporations have stolen the People's Government and turned it into the Corpo
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Mandatory downtime for criticism (Score:3, Informative)
More greed (Score:4, Informative)
Didn't the laws for streaming compensation just change in the US because labels thought they weren't being paid enough? Now they want more money? Oh well, it's their loss. Streaming is the new broadcast radio. It's how people are discovering new music these days. If you don't have your music out on these sites then your artists will have less exposure. This is great news for the other artists (on other labels and independent) who will now have less competition on the streaming sites.
Smart move (Score:2)
Unmitigated Greed (Score:5, Insightful)
The streaming services are doing all the work. They host the songs. They pay for the bandwidth they use. Warner is doing NOTHING except giving permission. After that, they pay nothing. They do NOTHING.
Any money they get should be plenty, considering they do NOTHING for anyone. It's literally free money.
This is pure greed.
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The streaming services are doing all the work. They host the songs. They pay for the bandwidth they use.
They don't write the songs, and they don't record the songs.
Controlled composition clauses (Score:2)
The artists write the songs
Record labels actually discourage recording songs that you've written in favor of recording songs that someone else has written. See controlled composition clauses [ascap.org]. I guess it has something to do with the fact that it's harder to withhold songwriting royalties until the album recoups than it is to withhold recording royalties.
Maybe try treating customers better? (Score:5, Insightful)
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Apple isn't too bad in that regard. I had some Futurama episodes that I lost when moving to a new computer, filled out the form and was able to redownload all them in about a week.
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Well, what I did was ask for a refund, they told me no. I then replied and asked to redownload and they granted it.
Dear x,
Your request for a refund for "Futurama, Season 1" was carefully considered; however, according to the iTunes Store Terms of Sale, all purchases made on the iTunes Store are ineligible for refund. This policy matches Apple's refund policies and provides protection for copyrighted materials
Can I redownload it?
Followup:
Hi x,
I'm sorry to hear that you purchase "Futurama, Season 1" is missi
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In my experience, Napster has been pretty good about letting me re-download tracks I lost due to an emergency reformat. Additionally, utilities exist for retrieving songs off an iPod if they were synced to one. I totally agree with the fact that the issue you're talking about is complete and utter crap - even Steam lets me re-download my games as many times as I need to; surely 14GBytes of upload for Mass Effect 2has to cost them more than the ~750 MBytes from iTunes (and yes, I'm assuming iTunes here). I g
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Completely agree .... (Score:3, Insightful)
But as others have said, it's *always* really been your responsibility to protect the goods you purchase. If she had invested even $79 or so for an external USB hard drive (a lot less money than she spent on the music itself!), and did regular backups of her data to it, she wouldn't have had this issue in the first place.
I wouldn't get the ability for a "one time free replacement" of my collection of physical CDs and cassette tapes if they were all destroyed in a fire tomorrow, or they were stolen, or ??
On
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I agree that would be nice, but even if I had a house fire and lost my CDs, the labels wouldn't replace them even if I offered to pay their costs ($0.50 or so per disc). In general, if you want to protect against the loss of something you bought you get insurance.
Having said that, I do think it would be good service if download sites would allow redownload (for example many of the games sites like Steam do so).
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I know I would have kept a physical cd safe
Then burn your bits to a physical CD, with a couple PAR2 discs for every dozen data discs, and keep those physical CDs safe.
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Vote with your $$$ against Warner artists (Score:2)
Is it still my fault when the systems as a whole are engineered stupid?
Yes, because you chose non-free, engineered-stupid music instead of Free [freedomdefined.org] music [jamendo.com].
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Someone find somebody who knows computers and rewrite Nader in the context of computing, you'll make a mint.
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CDs are unreliable. They get scratched or stolen. The music company won't send me a replacement.
Apple knows every track you've downloaded with your iTunes account. You can petition to get another round of downloads. You really think it was Apple's choice to put this limit in place? (And don't even start with the "well they could have chosen to not carry label X then".) When their files had DRM you could still have them on multiple machines. Now you can put your iTunes music on as many machines as you want.
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Most of our houses don't get flooded every two years.
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>>>And how is this different from a fire or flood or theft that damages a CD collection?
CDs should be replaced for free too, since you've already paid for the music. Just pay for a nominal shipping fee.
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Fuck em, who needs them anyway! ARRG! (Score:2)
parasites (Score:2)
having an existential crisis is a good definition of humor, but its not a business plan
the only amount people will spend on music (apart from upper middle class westerners) is zero
and the internet makes it possible
you can't beat an army of technologically astute, media hungry, and POOR teenagers. your bought and paid for legislation is unenforceable. your garrison of lawyers can only catch clueless soccer moms and grandmothers
your only option is to fucking die already, music industry
the future is artists gi
Artists who just lost album sales: (Score:2)
I bought Octavarium based on hearing Dream Theater on Spotify. I won't bother with the rest of their albums.
I'll also post on their Facebook / fansites telling them so.
$X profit $0 profit (Score:2)
I'm not sure I get this... Right now WB is making *some* money from streaming sites. This money is 100% pure profit, since all expenses are borne by the streaming sites. It's money flowing in that they have to do absolutely nothing for.
Yet they want to shut down their content on those sites. This will take their profit from some number X > $0 to $0.
It will be a net loss for WB. No money at all from streaming services.
I'm not sure I understand their business model. How does this make sense? I thought the
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1. We're making $X right now for doing nothing by providing music to these services, and there are people listening to that music and enjoying it.
2. Those people must not just be casual listeners, instead they must be so excited about listening to Warner music that if we cut it off they'll pay WAY MORE to listen to it from a service WE provide (this would be the fallacy in their reasoning).
3. Therefore, we should stop the streaming and maybe set
When will the madness end? (Score:2)
Watching Diplodocus Starve (Score:2)
Well, it's what this whole thing reminds me of. Music simply isn't worth what it used to be because there's now more competition, and more choice in the market place. Warner needs to get smaller very quickly to survive.
If I ever start a band I will name it "Watching Diplodocus Starve"
If you really want to know what's wrong... (Score:2)
...with Warners today, all you have to do is contrast this money-grubbing douche with the likes of Ted Templeman, Lenny Waronker, and Mo Ostin. These were guys who staged and kept alive a renaissance at Warners for over thirty years. They signed amazing people like Hendrix, Zappa, Little Feat, the Doobies, and that's just for starters. Ostin in particular was so loved that artists actually wrote songs for him.
But this moron...the only thing he's interested in--forgive me for the cliché--is money for no
This is the result of freedom of choice (Score:2)
Before the internet, if you wanted to be a truly successful music group, you had to go to the labels. Otherwise, there was no easy to way to get your music heard.
Now, anyone with a guitar and a microphone can record themselves and post it up for everyone to listen to. There are some people that just shouldn't do this for lack of skill, but this IS a boon to the folks that do have some skill, but are ignored by the labels. The technology is cheap/free to record, mix and render some high-quality original m
Bottled water, diamonds, music (Score:2, Interesting)
These things -- bottled water, diamonds, and music -- have much in common. The vendors of these products have created an artificial demand for a plentiful product. We are told that diamonds are exceedingly rare. When someone invents a process to manufacture flawless diamonds, we are told that only "natural" diamonds are proper tokens of affection. Bottled water is the same. We pay more for a gallon of water than for a gallon of high grade 93 octane gasoline. The same with music. There is no shortage of
Your joy == Our pay (Score:2)
"Bronfman contended that this revenue comes nowhere near what they need in compensation for each individual's enjoyment of each work"
What if I stream something to see if I like it, only to decide it sucks more massively than Jar-Jar Binks? Will Warner pay me?
This is one inherent fallacy of attempting to monetize intangibles.
Another is that someone in the equation will likely overvalue their piece / portion / place, and thereby decrease the enjoyment of all.
It's obvious the suits running media companies are
A subscription model for commodities... (Score:3, Interesting)
If you're charging $5-$10 a month to download 100s of DRM free mp3s per month that can be easily synced with mobile devices you may have a model on your hands. Want 1000s a month? Want 1000s a month and FLAC? $20 and $30 a month respectively.
The labels could make this work because:
1. People like novelty. Publish a great song this month? People stay subscribed.
2. People like feeling like they aren't being taken advantage of. Being able to stop at any time and keep the tens of thousands of tracks you've downloaded removes the fear of joining in the first place.
3. People like having their friends know what they like. Syncing up "official" subscriber downloads with social networking sites helps show who the "true" fans are.
Of course anything Warner does will suck, have horrible design, have tons of DRM and only work on Windows.
Don't think this applies in the US (Score:3, Interesting)
In the US we have a fantastic little organization called SoundExchange. You may remember them from previous stories on slashdot about how they were trying to destroy internet radio by charging massively inflated prices. Part of the reason it was big news is because in the US internet radio broadcasts fall under a compulsory license. Even if you're an independent artist who is not represented by any of the labels that SoundExchange represents, broadcasters must pay SoundExchange to play your recordings.
Warner is in the same situation, and cannot opt out of this no matter how much they want to. They could make specific agreements with each and every internet radio station, but all the stations would have to do is say no. If no agreement could be reached it goes right back to the standard terms of SoundExchange.
I'm not an expert in licensing, but I do work for a radio network that also broadcasts on the internet. During the big SoundExchange debacle last year this is how everything was explained to me. I highly doubt any internet radio service in the US will be in trouble.
Re:What they NEED? (Score:5, Interesting)
Worse, he claims there to know the level of individual enjoyment from Warner music; and how much it is worth.
To which I would like to say - I decide that. And from now on, Warmer music isn't worth listening to me.
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Re:Loss of customers (Score:5, Insightful)
Yes, it is a pity. For Warner. I could care less.
I've discovered a bunch of new artists through Pandora, and even purchased music from a select few. I neither know nor care who the artist is signed up through. I use free streaming media to discover new artists, and if I like the artist I might go out and buy an album or two from them. I couldn't name the label that my last 10 CDs came from, though I could list off the artists.
If Warner chooses to withdraw their catalog from Pandora, well, that's their decision and they are well within their rights to do so. It means that I, for one, will not hear any of their new music. But there are plenty of talented artists out there who use more enlightened labels that actually want their artists' work to be discovered. I won't lack for good music to discover, it just won't include Warner's product.
Doesn't matter to me. If they don't want to market to me any more, that's their right.
Re:Loss of customers (Score:4, Insightful)
Streaming lets me hear the music and encourages me to buy it. Remove that, and the best way for me to hear music is to download it, which removes the incentive to purchase. I suppose the good thing from this is that it should encourage artists to think harder about signing on to a label until they return to sanity (which may be never).
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Yes, I do still buy CDs. I haven't gotten into the whole purchasing MP3s online. More often than not, I find that CDs are c
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Pandora is the only reason I would buy a CD anymore. If WB has decided to cut them
off then they are cutting their nose off to spite their face. Pandora is the ultimate
personal DJ and it even comes with links to buy if you are so inclined. You really
have to wonder what they're thinking over there at WB.
What are they on?
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they don't like that they're actually already getting paid to stream, so apparently they'd prefer that they don't get paid to have their music streamed.
Impressive, isn't it?
Note that correctly: they don't let people stream the music for free, they charge people for it.
This doesn't apply to pandora (Score:3, Informative)
http://gizmodo.com/5469042/warner-music-doesnt-much-care-for-this-free-internet-music [gizmodo.com]
Edgar Bronfman's comment on the Warner conference call was addressing free on-demand services such as Spotify that are directly licensed. Pandora operates under a different licensing structure and won't be impacted by Warner's apparent decision with respect to free, on-demand services.
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Warner/Chappell != Warner Bros. Records (Score:2)
How is internet streaming any different than FM radio?
Warner/Chappell, the publishing division of Warner Music Group, already gets money for its songwriters' airplay. As for recordings on Warner labels, 17 USC 106(6) states that the exclusive right to perform a sound recording publicly applies only to digital transmissions, not analog transmissions (such as FM radio), and 17 USC 114 states that it does not apply to a nonsubscription broadcast transmission licensed by the FCC (such as HD Radio).
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Quick, stop the radio! (Score:3, Informative)
And before that we tried ad-based radio and television, and see how it worked out! There's no way the music industry can grow if anyone can listen to music broadcast on the radio bands without paying. How will the artists live?
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They won't make any money. It will be just like the bad old days of the 1800s when artists like Edgar Allan Poe died in the streets. The horror. The horror. /end sarcasm
So does this mean I can no longer watch free streaming content of Buffy and Gilmore Girls on thewb.com? :-(
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Warner executives simply OOZE greed. Seriously they leave a slime trail they ooze it so badly.
Streaming like last.fm and pandora are NO DIFFERENT than listening to the FM radio.
This simply highlights how much of scumbags these people really are.
Re:See! (Score:5, Interesting)
This is nothing new. These industries fought the grammophone, because nobody would buy sheet music anymore. As it turned-out, they were right but the loss of sales from sheet music was more than made-up by sales of cylinders and discs.
Then they fought the invention of FM radio, because they feared people would no longer listen to music on the AM stations. Again they were correct, but AM survived as the source for news and dialogue.
Now they are fighting digital streaming because they fear it will hurt FM radio and sales of discs. And again they're probably right, but they can still make a *lot* of money from internet ads and direct sales.
They need to stop being afraid of the future. Technology changes but they will still have a place to sell their warez.
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They cant be afraid of losing FM until we have free broadband in our cars. I dont buy that argument and I've heard it many times.
90% of FM radio listening is in the car. so these streaming sources are not competing with FM.
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Oh, but thats already started.
Satellite radio was the first, and served its purpose until cell phone became able to stream. Have you noticed that almost all new radios have an /aux' input to plug in a mp3 player of your choice?
Personally, I just shifted away from satellite radio, and now use my Droid exclusively to stream music on my car, either from the local sd card, or direct from the internet at 3G speeds.
The last time I heard an FM station in my car was probably 6 years ago. I know Im an outlier o
Re:See! (Score:5, Insightful)
That's not true.
When I listen to FM radio, I have no control over what gets played -- except by changing stations. On Pandora (not sure about last.fm, I don't use it) I have input into the song selection. I've fine-tuned my favorite stations so that I can enjoy the music I like without ever needing to buy it. I don't have to worry about songs I like dropping off the playlists of my favorite stations (so I don't need to buy the songs if I still want to listen to them).
This is markedly different from FM radio, where the marketing arms of the labels, along with Clearchannel, decide what gets exposure.
Because the labels have less input into what I listen to on Pandora (than on FM radio), their marketing efforts are less effective. Aggregated across millions of users, what streaming services represent is a loss of control of the industry (and the marketplace!) by the labels. They want to avoid this at all costs, since technology is making their role almost exclusively marketing.
Long story short, streaming services where the listener has control over what content gets played spell the end of the big label era. The big labels fighting tooth and claw for their survival.
Re:See! (Score:4, Insightful)
Because the labels have less input into what I listen to on Pandora (than on FM radio), their marketing efforts are less effective.
I disagree. I pay a lot more attention to the music I listen to on Pandora because more of it is interesting to me. I also have the artist's bio at my fingertips, and I'm far more likely to make an impulse purchase.
Pandora is a near-perfect combination of radio and on-demand from a music marketing perspective. I don't get to pick individual songs, but music gets limited to stuff that I'm likely to want to listen to and therefore buy.
Clearchannel may have absolute control over the radio, and they may be able to market that music to a larger audience, but it's scattershot advertising. They have to throw a song out there and hope it sticks.
Pandora is targeted advertising of music, under the transparent guise of letting you listen to free music. Once you hear a song on Pandora, it's unlikely you'll hear it again anytime soon, so if you want it you will have to buy it. And Pandora's selection certainly brings up a lot of stuff their listeners will want, since the music is targeted to the tastes of that specific listener.
Streaming services where the listener has *absolute* control over what content gets played are a clear threat to the labels. Streaming services where the listener only controls the types of music but not the specific song are the greatest marketing engine a record label could possibly hope for.
These guys should be falling all over themselves to give Pandora all the music they have, and BEGGING (no, PAYING) Pandora to play it. A lot.
Pandora is, at its heart, a gathering of interested customers who willingly reveal their purchase preferences and ask to be exposed to new music in return for the right to listen to tracks you have chosen for them based on those preferences. Those customers can then purchase music directly from within the application, or research the artist further to see if they want to buy more of their music.
If there are marketers out there and the previous paragraph did not make you orgasm uncontrollably, you need to go back to marketing school and pay attention this time.