BitTorrent Lawsuits
OiNK -UK
Alan Ellis, administrator of the private UK Bit Torrent Network OiNK was charged with Conspiracy to defraud.[1] OiNK was initially raided and closed down in October 2007 in a coordinated raid between UK and Dutch police.[2] Two users of the network were also charged with copyright infringement for uploading a single CD each to the network.[3] Five OiNK users had been previously been arrested but were released without charge.[4]
Elite Torrents - USA
Daniel Dove became the first person to be found guilty of copyright infringement in a court in Virginia in the United States for use of the BitTorrent network.[5] Dove was an administrator of the sites uploaders and was sentenced to 18months imprisonment, a $20,000 fine and 3 years of supervised release for his part in the network.[6] Elite Torrents had more than 125,000 members and distributed 700 movies 1.1 million times.[7]
Other administrators of the site: Scott McCausland, Grant Stanley, Sam Kuonen and Scott Hargraves all pleaded guilty to copyright infringement charges.[8]
Torrent Spy - USA
TorrentSpy were held liable for copyright infringement and ordered to pay damages of $110million in June 2008 and then filed for bankruptcy.[9] US District Judge Florence-Marie Cooper awarded the MPAA maximum damages of $30,000 per movie for 3,699 infringement charges.[10] TorrentSpy apparently destroyed some of the evidence relevant to the case and failed to keep accurate records of users.[11] TorrentSpy initially sought to appeal the decision.[12]
Torrent spy continues to litigate against the MPAA for their investigation techniques which included hacking into the emails of TorrentSpy and sending copies of material to the MPAA.[13]
isoHunt - Canada
In May 2008 isoHunt, Torrentbox.com and Podtropolis.com received cease and desist letters for operating a BitTorrent tracker site.[14] Despite offering to cooperate fully with take down notices CRIA continued to allege that the sites were in breach of copyright law.[15] In response isoHunt made a Petition to the Court in order that their legal status be determined.[16] Since 2003 it was estimated that the operators of the tracking site had removed over 50,000 links to illegal material on request of the copyright holders.[17]
Quebec Torrent – Canada
The Quebec Superior Court ordered the permanent shut down of site Quebec Torrent in July 2008. The Association quѐbѐcoise de l’industrie du disque, du spectacle et de la vidѐo (ADISQ) sought the injunction and $200,000 in damages from the administrator Sѐbastien Brulottte. The site was used by an estimated 10,000 people.[18]
ColomboBT.org – Italy
In mid 2008 the Guardia di Finanza in cooperation with the (IFPI equivalent) FPM in Italy forced the BitTorrent tracker site Colombo.org to shut down.[19] ColomboBT.org had 400,000 registered users with 800,000 unique visitors per month, an estimated 390,000 music files and 500,000 movie files.[20]
Torrent.to – Netherlands
BREIN forced the shut down of Torrent.to in 2008.[21] The District Court of Den Bosch (the Netherlands) ordered the closure of the site and the disclosure of the personal information of the sites operators by internet provider Euroaccess.[22]
Everlasting – Netherlands
BREIN forced the shut down of the BitTorrent site Everlasting in 2008.[23] Following the decision of a Dutch Court BREIN won an injunction against the site operated by LeaseWeb who had also hosted Demonoid prior to its relocation to Canada.[24] LeaseWeb appealed the decision but in July 2008 the Amerstdam Court of Appeals ruled in BREINs favour.[25]
Torrent.is – Iceland
In March 2008 the BitTorrent tracker Torrent.is, the most popular private tracker site in Iceland faced legal action for copyright infringement.[26] When the preliminary injunction was received in November 2007 and the site was shutdown there was a 50% drop in internet traffic in Iceland.[27] The site had around 26,500 active users.[28]
Httpshare – Israel
In March 2008 an Israeli court ordered an ISP to block the BitTorrent search site HttpShare but it remained available to the rest of the world. [29] Immediately after the block went in to place the number of visitors to the site dramatically increased largely because of the publicity surrounding the decision.[30] The site reported 70,000 visitors per day and needed to upgrade their network to cope with the additional traffic.[31]
The Pirate Bay - Denmark
Two thousand and eight was another litigious year for the Pirate Bay. An Italian judge from the Court of Bergamo ordered Italian ISPs to block users from that country from the site. In October the case went on appeal and the decision was overturned.[32] The Italian ban and the publicity surrounding it resulted in an increase in the number visitors to the site.[33] In response to the initial court decision The Pirate Bay changed the IP address for the website and suggested that users refer to labaia.org to access the site or switch to OpenDNS to bypass the filters imposed by the ISPs.[34]
In February 2008 the IFPI took action against The Pirate Bay in Denmark seeking court assistance to block access by the ISP Tele2.[35] The court ordered the blocking of the site but this had little effect with it rising from 29th most popular site in Denmark to the 24th most popular.[36] The case has gone on appeal. [37] The block led to an increase in traffic to The Pirate Bay.[38] The ISP was reported to be appealing the decision.[39]
In January 2008 operators of The Pirate Bay were charged with 33 counts of copyright infringement (20 music albums, 9 movies and 4 computer games) by Swedish police.[40] Damages of 1.2 million kronor ($US185,000) are sought against three of the sites administrators who claim that the site will remain operational even if they are found liable.[41] Controversially, it was later revealed that a police member involved in the initial investigation was at the time also an employee of Warner Brothers.[42] The MPAA are seeking $15.4 million in damages with the IFPI seeking $2.5 million in damages.[43] Arists such as Prince and the Village People were reportedly involved in the lawsuit.[44] The case is partly based on the 2006 server raids and is reported to consist of 4,000 documents.[45]
One musician that was used by the IFPI in filing charges against The Pirate Bay later expressed concern at being used for these purposes indicating that he was pro file sharing and did not wish to be part of the prosecution against The Pirate Bay.[46]
Statistics indicate that the user base of The Pirate Bay have risen from 10-15 million simultaneous users to 20 million.[47] In June 2008 The Pirate Bay entered the top 100 of the world most visited sites, being ranked at 97 and only second to Mininova (ranked at 52) as the most preferred file sharing website.[48] Mininova passed its 4 billionth download in February 2008.[49]
Other File Sharing Lawsuits
In addition to the lawsuits against BitTorrent, Limewire and individuals that have engaged in file sharing, in 2008 there were three other cases, two in Germany and one in France concerning file sharing software. Legal action was also taken in the Netherlands against eDoneky servers and in Mexico in relation to a DirectConnect hub.
In Germany a court in Hamburg found that the operators of Rapidshare were not doing enough to prevent illegal infringement on their network despite having six fulltime employees checking for and removing illegal content and despite implementing a hash based filter.[50]
In a separate action however the operator of an eDoneky server was held to have complied with copyright infringement notification and the use of key word filtering was deemed sufficient to excuse the operator for facilitating copyright infringement.[51]
In the later part of 2008 a French court ruled that French copyright law – Article L. 335-2-1 which seeks to prevent the facilitation of copyright infringement could be applied to entities outside of the jurisdiction.[52] A case against Limewire, Morpheus, Vuze and Sourceforge which was commenced in 2007 was allowed to proceed but is yet to go to trial.[53]
BREIN forced the shut down of Razorback 3.0, 3.1, 3.2 and 3.5 servers in 2008.[54] Razorback 3.1 was the largest of these enabling 350,000 users to access the eDonkey network.[55]
In July 2008 Mexican authorities closed down the DirectConnect Hub Sunnydale Hub which had 1.5 TB of copyrighted material and required users to contribute a minimum of 2GB of content to be connected.[56]
[1] ZeroPaid, OiNK Admin Charged with 'Conspiracy to Defraud' Uploaders with Copyright Infringement (12 September 2008) <http://www.zeropaid.com/news/9745/OiNK+Admin+Charged+With+%27Conspiracy+to+Defraud%2C%27+Uploaders+With+Copyright+Infringement> at 21 September 2008; TechDirt, UK Overreaction To OiNK Continues (11 September 2008) <http://www.techdirt.com/articles/20080911/0218552233.shtml> at 14 September 2008; TechDirt, UK Authorities Charging OiNK Users With 'Conspiracy To Defraud The Music Industry' (2 June 2008) <http://www.techdirt.com/articles/20080601/1756051285.shtml> at 4 June 2008
[2] ZeroPaid, OiNK Admin Charged with 'Conspiracy to Defraud' Uploaders with Copyright Infringement (12 September 2008) <http://www.zeropaid.com/news/9745/OiNK+Admin+Charged+With+%27Conspiracy+to+Defraud%2C%27+Uploaders+With+Copyright+Infringement> at 21 September 2008
[3] ZeroPaid, OiNK Admin Charged with 'Conspiracy to Defraud' Uploaders with Copyright Infringement (12 September 2008) <http://www.zeropaid.com/news/9745/OiNK+Admin+Charged+With+%27Conspiracy+to+Defraud%2C%27+Uploaders+With+Copyright+Infringement> at 21 September 2008; Digital Music News, Uploading Kills: OiNK Operators, Players Face Charges (11 September 2008) <http://www.digitalmusicnews.com/stories/091108oink> at 14 September 2008
[4] ZeroPaid, 5 More Former OiNK Users Arrested (6 June 2008) <http://www.zeropaid.com/news/9533/5+More+Former+OiNK+Users+Arrested> at 6 June 2008; The Register, UK cops arrest six alleged BitTorrent music uploaders (2 June 2008) <http://www.theregister.co.uk/2008/06/02/onk_further_arrests/> at 4 June 2008
[5] ZeroPaid, Elite Torrents Admin Sentenced, Gets 18 months, $20,000 Fine (11 September 2008) <http://www.zeropaid.com/news/9744/EliteTorrents+Admin+Sentenced%2C+Gets+18+Months%2C+%2420%2C000+Fine> at 12 September 2008; The New York Times, Jury Convicts Web Site Operator in P2P Case (27 June 2008) <http://www.nytimes.com/idg/IDG_852573C40069388085257475006826C0.html> at 4 July 2008
[6] ZeroPaid, Elite Torrents Admin Sentenced, Gets 18 months, $20,000 Fine (11 September 2008) <http://www.zeropaid.com/news/9744/EliteTorrents+Admin+Sentenced%2C+Gets+18+Months%2C+%2420%2C000+Fine> at 12 September 2008; Digital Music News, Another Heavy Hammer: EliteTorrents Admin Heads to Jail (11 September 2008) <http://www.digitalmusicnews.com/stories/091008elite> at 12 September 2008
[7] The New York Times, Jury Convicts Web Site Operator in P2P Case (27 June 2008) <http://www.nytimes.com/idg/IDG_852573C40069388085257475006826C0.html> at 4 July 2008; ZeroPaid, Former Elite Torrents Admin Faces 10 Years in Prison (29 June 2008) <http://www.zeropaid.com/news/9597/Former+EliteTorrents+Admin+Faces+10yrs+in+Prison> at 30 June 2008
[8] ZeroPaid, Elite Torrents Admin Sentenced, Gets 18 months, $20,000 Fine (11 September 2008) <http://www.zeropaid.com/news/9744/EliteTorrents+Admin+Sentenced%2C+Gets+18+Months%2C+%2420%2C000+Fine> at 12 September 2008
[9] Digital Music News, We're Broke! Torrentspy Offers Latest Snub to MPAA... (12 May 2008) <http://www.digitalmusicnews.com/stories/051108torrent> at 21 May 2008; Digital Music News, TorrentSpy Faces Hefty, $110 Million Infringement Penalty (7 May 2008) <http://www.digitalmusicnews.com/stories/050708torrentspy> at 10 May 2008; The Register, Hollywood awarded $110m against TorrentSpy (7 May 2008) <http://www.theregister.co.uk/2008/05/07/mpaa_awarded_110m_from_torrentspy/> at 10 May 2008
[10] The Register, Hollywood awarded $110m against TorrentSpy (7 May 2008) <http://www.theregister.co.uk/2008/05/07/mpaa_awarded_110m_from_torrentspy/> at 10 May 2008
[11] TechDirt, TorrentSpy Gives Up; Shuts Down (27 March 2008) <http://www.techdirt.com/articles/20080327/105542666.shtml> at 31 March 2008
[12] The Register, Hollywood awarded $110m against TorrentSpy (7 May 2008) <http://www.theregister.co.uk/2008/05/07/mpaa_awarded_110m_from_torrentspy/> at 10 May 2008; Yahoo UK Ireland, TorrentSpy to appeal 110-mln-dollar ruling in film piracy suit (8 May 2008) <http://uk.news.yahoo.com/afp/20080508/ttc-us-it-internet-copyright-film-trial-e0bba4a.html> at 10 May 2008; TechDirt, Court Orders TorrentSpy To Pay $110 Million To MPAA (7 May 2008) <http://www.techdirt.com/articles/20080507/1657261059.shtml> at 10 May 2008; TechDirt, TorrentSpy, Though Out Of Business, To Appeal Massive Fine (8 May 2008) <http://www.techdirt.com/articles/20080508/1046351063.shtml> at 10 May 2008; ArsTechnica, TorrentSpy ordered to pay $110 million in damages to MPAA (7 May 2008) <http://arstechnica.com/news.ars/post/20080507-torrentspy-ordered-to-pay-110-million-in-damages-to-mpaa.html> at 8 May 2008
[13] TechDirt, TorrentSpy Appeals Lawsuit Over MPAA Getting Access To Its Emails (25 July 2008) <http://www.techdirt.com/articles/20080724/1704181785.shtml> at 28 July 2008
[14] ZeroPaid, isoHunt Sues Canadian Record Industry to Prove BitTorrent Legal (10 September 2008) <http://www.zeropaid.com/news/9743/isoHunt+Sues+Canadian+Record+Industry+to+Prove+BitTorrent+Legal> at 12 September 2008
[15] ZeroPaid, isoHunt Sues Canadian Record Industry to Prove BitTorrent Legal (10 September 2008) <http://www.zeropaid.com/news/9743/isoHunt+Sues+Canadian+Record+Industry+to+Prove+BitTorrent+Legal> at 12 September 2008
[16] ZeroPaid, isoHunt Sues Canadian Record Industry to Prove BitTorrent Legal (10 September 2008) <http://www.zeropaid.com/news/9743/isoHunt+Sues+Canadian+Record+Industry+to+Prove+BitTorrent+Legal> at 12 September 2008
[17] Canada.com, B.C. Search engine head sues industry group over downloading (10 September 2008) <http://www.canada.com/topics/technology/story.html?id=a6b3cd6c-f902-4429-bb4b-06c224cc1e15> at 12 September 2008
[18] cbc.ca, Quebec court orders popular downloading website to shut down (11 July 2008) <http://www.cbc.ca/technology/story/2008/07/11/qc-quebectorrent0711.html> at 11 July 2008
[19] ZeroPaid, Italian Govt Orders ISPs to Block the Pirate Bay (12 August 2008) <http://www.zeropaid.com/news/9694/Italian+Govt+Orders+ISPs+to+Block+The+Pirate+Bay> at 20 August 2008
[20] Billboard, Italy's Largest BitTorrent Site Shuttered (29 July 2008) <http://www.billboard.biz/bbbiz/content_display/industry/e3i0e5e7151b1d77beb2192faa5ae24ecf8> at 6 August 2008
[21] Slyck, BREIN Continues Dutch Anti-Piracy Mop up (13 July 2008) <http://www.slyck.com/story1712_BREIN_Continues_Dutch_AntiPiracy_Mop_up> at 23 July 2008
[22] Slyck, BREIN Continues Dutch Anti-Piracy Mop up (13 July 2008) <http://www.slyck.com/story1712_BREIN_Continues_Dutch_AntiPiracy_Mop_up> at 23 July 2008
[23] Slyck, BREIN Continues Dutch Anti-Piracy Mop up (13 July 2008) <http://www.slyck.com/story1712_BREIN_Continues_Dutch_AntiPiracy_Mop_up> at 23 July 2008
[24] ZeroPaid, Dutch Court Rules BitTorrent Tracker Site Hosting Illegal (8 July 2008) <http://www.zeropaid.com/news/9614/Dutch+Court+Rules+BitTorrent+Tracker+Site+Hosting+Illegal> at 9 July 2008
[25] ZeroPaid, Dutch Court Rules BitTorrent Tracker Site Hosting Illegal (8 July 2008) <http://www.zeropaid.com/news/9614/Dutch+Court+Rules+BitTorrent+Tracker+Site+Hosting+Illegal> at 9 July 2008
[26] TorrentFreak, Iceland's Largest Bit Torrent Trackers Faces Permanent Shutdown (16 March 2008) <http://torrentfreak.com/bittorrent-tracker-faces-permanent-shutdown-080316/> at 27 March 2008
[27] TorrentFreak, Iceland's Largest Bit Torrent Trackers Faces Permanent Shutdown (16 March 2008) <http://torrentfreak.com/bittorrent-tracker-faces-permanent-shutdown-080316/> at 27 March 2008
[28] TorrentFreak, Iceland's Largest Bit Torrent Trackers Faces Permanent Shutdown (16 March 2008) <http://torrentfreak.com/bittorrent-tracker-faces-permanent-shutdown-080316/> at 27 March 2008
[29] TechDirt, As Expected, IFPI 'Advertising' Helps Boost BitTorrent Search Site (12 March 2008) <http://www.techdirt.com/articles/20080312/191122521.shtml> at 13 March 2008
[30] TechDirt, As Expected, IFPI 'Advertising' Helps Boost BitTorrent Search Site (12 March 2008) <http://www.techdirt.com/articles/20080312/191122521.shtml> at 13 March 2008
[31] Digital Music News, Israeli BitTorrent Tracker Blocked; More Drama Ahead (10 March 2008) <http://www.digitalmusicnews.com/stories/030908israel> at 11 March 2008; TechDirt, IFPI Gets Israeli Court To Block (And Advertise) File Sharing Site (6 March 2008) <http://www.techdirt.com/articles/20080306/075612462.shtml> at 7 March 2008
[32] ZeroPaid, Italian Court Rules ISP Block of The Pirate Bay Illegal (2 October 2008) <http://www.zeropaid.com/news/9782/Italian+Court+Rules+ISP+Block+of+The+Pirate+Bay+Illegal> at 5 October 2008; TechDirt, Court Says Italy Can't Block The Pirate Bay (25 September 2008) <http://www.techdirt.com/articles/20080925/1538242379.shtml> at 26 September 2008
[33] TechDirt, Why Did Italian ISPs Redirect Pirate Bay Traffic To IFPI Site? (18 August 2008) <http://www.techdirt.com/articles/20080815/1428431996.shtml> at 20 August 2008; TechDirt, Italy Tries, Fails To Ban The Pirate Bay (11 August 2008) <http://www.techdirt.com/articles/20080811/0048071938.shtml> at 20 August 2008
[34] Digital Music News, The Pirate Bay... Blocked by Italian ISPs... (12 August 2008) <http://www.digitalmusicnews.com/stories/081108pirate> at 20 August 2008; ZeroPaid, Italian Govt Orders ISPs to Block the Pirate Bay (12 August 2008) <http://www.zeropaid.com/news/9694/Italian+Govt+Orders+ISPs+to+Block+The+Pirate+Bay> at 20 August 2008; The Register, Pirate Bay Evades Italian Blockade (11 August 2008) <http://www.theregister.co.uk/2008/08/11/pirate_bay_italy/> at 20 August 2008; Slyck, ISPs block The Pirate Bay in Italy (9 August 2008) <http://www.slyck.com/story1739_ISPs_block_The_Pirate_Bay_in_Italy> at 12 August 2008
[35] Digital Music News, Pirate Bay Gets Shorted In Denmark, ISP Blocks Access (6 February 2008) <http://www.digitalmusicnews.com/stories/020508pirate> at 19 February 2008; Slyck, The Pirate Bay Cache Blocked in Denmark (4 February 2008) <http://www.slyck.com/story1655_The_Pirate_Bay_Cache_Blocked_in_Denmark> at 7 February 2008
[36] The Register, Pirate Bay to sue music industry (16 April 2008) <http://www.theregister.co.uk/2008/04/16/piratebay_sues_music_industry/> at 26 April 2008
[37] The Register, Pirate Bay to sue music industry (16 April 2008) <http://www.theregister.co.uk/2008/04/16/piratebay_sues_music_industry/> at 26 April 2008; Digital Music News, Pirate Bay Pulls an IFPI... Legal Battlefield Intensifies (17 April 2008) <http://www.digitalmusicnews.com/stories/041608pirate> at 26 April 2008; ZeroPaid, Danish ISP May Fight Court Order to Block the Pirate Bay (7 February 2008) <http://www.zeropaid.com/news/9249/Danish+ISP+May+Fight+Court+Order+to+Block+The+Pirate+Bay> at 8 February 2008; TorrentFreak, The Pirate Bay Fights Danish ISP Block (5 February 2008) <http://torrentfreak.com/the-pirate-bay-fights-danish-isp-block-080205/> at 8 February 2008; TechDirt, Danish ISP Doesn't Understand Why It's Supposed To Block Pirate Bay (6 February 2008) <http://www.techdirt.com/articles/20080206/165610190.shtml> at 7 February 2008
[38] TechDirt, Danish Block Of The Pirate Bay Leads To Even More Traffic (11 February 2008) at 13 February 2008
[39] ZeroPaid, Danish ISP Decides to Fight Order to Block The Pirate Bay (15 February 2008) <http://www.zeropaid.com/news/9270/Danish+ISP+Decides+to+Fight+Order+to+Block+The+Pirate+Bay>m at 17 February 2008;
[40] ZeroPaid, Case Against The Pirate Bay Delayed Once Again, Possibly Until 2009 (2 September 2008) <http://www.zeropaid.com/news/9728/Case+Against+The+Pirate+Bay+Delayed+Once+Again%2C+Possibly+Until+2009> at 3 September 2008
[41] ZeroPaid, Case Against The Pirate Bay Delayed Once Again, Possibly Until 2009 (2 September 2008) <http://www.zeropaid.com/news/9728/Case+Against+The+Pirate+Bay+Delayed+Once+Again%2C+Possibly+Until+2009> at 3 September 2008; Slyck, The Pirate Bay Faces Lousy $740,000 Indictment (31 January 2008)
<http://www.slyck.com/story1652_The_Pirate_Bay_Faces_Lousy_740000_Indictment> at 5 February 2008; ZeroPaid, The Pirate Bay: 'We'll Keep Operating Even If We Lose Copyright Case' (1 February 2008) <http://www.zeropaid.com/news/9238/The+Pirate+Bay%3A+%27We%27ll+Keep+Operating+Even+If+We+Lose+Copyright+Case%27> at 4 February 2008; The Register, Pirate Bay slapped with copyright charges (31 January 2008) <http://www.theregister.co.uk/2008/01/31/pirate_bay_case/> at 4 February 2008; TechDirt, Pirate Bay Sued, As Expected (31 January 2008) <http://www.techdirt.com/articles/20080131/095659139.shtml> at 4 February 2008; Digital Music News, Swedes Still Serious on Pirate Bay; Salvos Launched (30 January 2008) <http://www.digitalmusicnews.com/stories/013108pirate> at 4 February 2008; TechDirt, What Good Will A Swedish Lawsuit Against The Pirate Bay Do? (29 January 2008) <http://www.techdirt.com/articles/20080128/19330699.shtml> at 31 January 2008
[42] TechDirt, Warner Music Admits It Hired Police Investigator Before The Pirate Bay Investigation Was Complete (5 June 2008) <http://www.techdirt.com/articles/20080605/1646031320.shtml> at 7 June 2008; ArsTechnica, Investigator controversy surfaces over Pirate Bay case (5 June 2008)<http://arstechnica.com/news.ars/post/20080605-investigator-controversy-surfaces-over-pirate-bay-case.html> at 6 June 2008
[43] ArsTechnica, Pirate Bay: MPAA's $15.4 million damage claim a fabrication (9 May 2008) <http://arstechnica.com/news.ars/post/20080509-pirate-bay-mpaas-15-4-million-damage-claim-a-fabrication.html> at 10 May 2008; The Local, The Pirate Bay faces massive damages claim (8 May 2008) <http://www.thelocal.se/11614.html> at 10 May 2008; ZeroPaid, IFPI Demands $2.56 Million USD from The Pirate Bay (3 April 2008) <http://www.zeropaid.com/news/9377/IFPI+Demands+%242.56+Million+USD+from+The+Pirate+Bay> at 8 April 2008; Digital Music News, Labels File Against Pirate Bay; $2.5 Million Sought (2 April 2008) <http://www.digitalmusicnews.com/stories/040108pirate> at 3 April 2008; ArsTechnica, Pirate Bay on IFPI lawsuit: Labels can "go screw themselves" (1 April 2008) <http://arstechnica.com/news.ars/post/20080401-pirate-bay-on-ifpi-lawsuit-labels-can-go-screw-themselves.html> at 2 April 2008; Sveriges Radio, Pirates Buoyant Despite Damages Claim (1 April 2008) <http://www.sr.se/cgi-bin/International/nyhetssidor/artikel.asp?ProgramID=2054&Nyheter=&artikel=1984922> at 2 April 2008
[44] ArsTechnica, Booty call: Music has-beens line up to sue The Pirate Bay (17 February 2008) <http://arstechnica.com/news.ars/post/20080217-booty-call-music-has-beens-line-up-to-sue-the-pirate-bay.html> at 18 February 2008; ZeroPaid, Village People Sue The Pirate Bay, ABBA to Follow? (16 February 2008) <http://www.zeropaid.com/news/9273/Village+People+Sue+The+Pirate+Bay%2C+ABBA+to+Follow%3F> at 18 February 2008
[45] ZeroPaid, Case partly based on evidence collected in the 2006 server raid. (29 January 2008) <http://www.zeropaid.com/news/9223/The+Pirate+Bay+to+be+Charged+by+Swedish+Prosecutors> at 30 January 2008; ZeroPaid, 4,000 Legal Documents Sent to ThePirateBay (17 January 2008) <http://www.zeropaid.com/news/9201/4%2C000+Legal+Documents+Sent+to+ThePirateBay> at 20 January 2008
[46] TechDirt, Musician Upset That He's Being Used In Lawsuit Against Pirate Bay (17 April 2008) <http://www.techdirt.com/articles/20080416/135916866.shtml> at 23 April 2008
[47] Slyck, The Pirate Bay Breaks 10 Million Users (26 January 2008) <http://www.slyck.com/story1643_The_Pirate_Bay_Breaks_10_Million_Users> at 31 January 2008; The Register, Pirate Bay hits ten million peers, one million torrents (28 January 2008)<http://www.theregister.co.uk/2008/01/28/pirate_bay_claims_largest_p2p/> at 30 January 2008washingtonpost/The Associated Press, Italy blocks Swedish file-sharing site (14 August 2008) <http://www.washingtonpost.com/wp-dyn/content/article/2008/08/14/AR2008081401638.html> at 20 August 2008; TorrentFreak, The Pirate Bay Smashes 12,000,000 BitTorrent Users (24 April 2008) <http://torrentfreak.com/the-pirate-bay-smashes-12000000-bittorrent-users-080424/> at 27 April 2008; Slyck, The Pirate Bay's 20 Million (3 November 2008) <http://www.slyck.com/story1789_The_Pirate_Bays_20_Million> at 5 November 2008
[48] ZeroPaid, The Pirate Bay Enters Top 100 Websites (24 May 2008) <http://www.zeropaid.com/news/9510/The+Pirate+Bay+Enters+Top+100+Websites> at 5 June 2008; <http://www.techdirt.com/articles/20080519/0227541162.shtml> at 21 May 2008
[49] ZeroPaid, MiniNova - 4 Billion Downloads (19 February 2008) <http://www.zeropaid.com/news/9276/MiniNova+-+4+Billion+Downloads> at 21 February 2008
[50] ZeroPaid, Rapidshare Losses in Court - Must Proactively Remove Copyrighted Content (2 October 2008) <http://www.zeropaid.com/news/9781/Rapidshare+Loses+in+Court+-+Must+Proactively+Remove+Copyrighted+Content> at 5 October 2008; TechDirt, Germany Says P2P Company Must Proactively Monitor Content For Infringement (1 October 2008) <http://www.techdirt.com/articles/20081001/1233262430.shtml> at 5 October 2008
[51] P2p Blog, Court: Edonkey sever admin not liable for infringement (9 September 2008) <http://www.p2p-blog.com/item-842.html> at 12 September 2008
[52] Digital Music News, French Labels Suing Limewire, Morpheus, Others (19 November 2008) <http://www.digitalmusicnews.com/stories/111808france> at 20 November 2008; ZeroPaid, French Court Okays Music Industry Lawsuit Targeting P2p Companies, Sourceforge (18 November 2008) <http://www.zeropaid.com/news/9849/French+Court+Okays+Music+Industry+Lawsuit+Targeting+P2P+Companies%2C+Sourceforge> at 19 November 2008; TechDirt, French Recording Industry Sues SourceForge For Hosting Open Source P2P (14 November 2008) <http://www.techdirt.com/articles/20081114/1457012833.shtml> at 16 November 2008
[53] Digital Music News, French Labels Suing Limewire, Morpheus, Others (19 November 2008) <http://www.digitalmusicnews.com/stories/111808france> at 20 November 2008; TechDirt, French Recording Industry Sues SourceForge For Hosting Open Source P2P (14 November 2008) <http://www.techdirt.com/articles/20081114/1457012833.shtml> at 16 November 2008
[54] Slyck, BREIN Continues Dutch Anti-Piracy Mop up (13 July 2008) <http://www.slyck.com/story1712_BREIN_Continues_Dutch_AntiPiracy_Mop_up> at 23 July 2008; ZeroPaid, Razorback 3.0, 3.1, 3.2 and 3.3 Servers Forced Offline by BREIN (22 July 2008) <http://www.zeropaid.com/news/9642/Razorback+3.0%2C+3.1%2C+3.2+and+3.3+Servers+Forced+Offline+by+BREIN> at 23 July 2008
[55] ZeroPaid, Razorback 3.0, 3.1, 3.2 and 3.3 Servers Forced Offline by BREIN (22 July 2008) <http://www.zeropaid.com/news/9642/Razorback+3.0%2C+3.1%2C+3.2+and+3.3+Servers+Forced+Offline+by+BREIN> at 23 July 2008
[56] ZeroPaid, Mexican Authorities Shut Down 'Sunnydale' DC Hub (22 July 2008) <http://www.zeropaid.com/news/9640/Mexican+Authorities+Shut+Down+%27Sunnydale%27+DC+Hub> at 23 July 2008
Monday, December 8, 2008
Sunday, December 7, 2008
Year in Review: New Business Models
Two thousand and eight was another year of experimentation with many artists and labels trying out different business models in the digital music environment.
These included:
Radiohead released their album In Rainbows as a pre release promotional strategy and allowed fans to set the price when downloading it.[1] They then removed the free downloads and sold the CD in stores, selling 1.75 million albums.[2] When including all digital sales the number of units shipped was reported to be 3 million.[3] In addition to this between October 10th and November 3rd 2007 there were 2.3 million downloads facilitated by BitTorrent.[4] The band then went on to sell out their tour.[5] Radiohead made it to No1 in both the USA and UK.[6]
Trent Reznor and Nine Inch Nails, who had already begun experimenting with promotional strategies such as hiding flashdrives in toilets of their concerts for their fans to find, released a four disc instrumental work called Ghosts I-IV with a tiered pricing structure.[7] Fans were able to download volume I for free by registering on the bands website or through BitTorrent and other file sharing networks, or they could pay $5 for all four of the volumes plus a 40 page PDF booklet, or they could elect to pay $10 for the albums on two CDs (with an immediate download), or they could pay $75 for a deluxe edition set which included the two CDs, a data DVD and Blu-ray disc or fans could purchase a limited edition set (2,500 copies) of the music plus all of the material in the $75 package plus four LP Vinyl records and two limited edition Giclee prints for $300.[8] The album was also licensed under a Creative Commons Non Commercial Attribution license to enable free sharing.[9] The album grossed $1.6million in the first week it went on sale.[10] Nine Inch Nails then released another album called The Slip completely for free to thank their loyal supporters.[11] The album was also available as a limited numbered edition in CD, DVD and vinyl with 250,000 copies pressed.[12] The band also later released a Google Earth map showing where the 1.4 million people who downloaded The Slip were geographically located.[13] They later engaged in direct fan consultation and asked fans to complete a survey on their website to enable them to learn more about what their fans wanted in the future.[14] To further engage fans Reznor also hid concert tickets around Los Angeles and posted clues and coordinates on their website so fans could find the free concert tickets.[15] In preparation for their upcoming concert they also gave away a free EP of the supporting artists for fans.[16] Premium tickets for the concerts were made available only through the bands website to ensure that fans and not scalpers would be able to access them.[17]
Saul Williams, with the assistance of Trent Reznor, also enabled fans to downloads his album for free or pay $5.00.[18] After an older track of Williams was used in a Nike commercial, downloads increased and he made over $300,000 from the album and his concert series sold out.[19] Over 225,000 people downloaded the album with 60,000 electing to pay $5.00.[20]
Coldplay released a single ‘Violet Hill’ for free ahead of the release date of their new album.[21] On Last.fm the track was played more than 10,000 times within the first 5 hours of its availability.[22]
Mudvayne started a scheme called The Album is the Ticket which bundled a one year subscription to the bands fan club with each album purchased.[23]
Marillion allowed their new album to be downloaded for free and used file sharing networks to assist with the distribution. Fans were a little disappointed with the use of DRM – the band used Music Glue to help gather the contact details of fans which required them to enter their email address before being able to swap encoded music for DRM free downloads. This was to help the band to develop their fan base and enable them to contact them about upcoming concerts.[24] In the past the band has produced a number of albums by getting fans to invest prior to their recording.[25]
Hugh Cornwell, formerly with the band the Stranglers, offered his latest album as a free download from his official website and at the same time gave fans the chance to buy a CD or vinyl copy. He also sold a DVD of the recording process of the album which was released as a film and played in cinemas which he attended and participated in a Question and Answer session with fans.[26]
Show of Hands is another band that has embraced file sharing stating that the technology enables them to expand their audience and has improved their record sales.[27]
Penny Wise gave away an album on MySpace which was downloaded 400,000 times in conjunction with sponsorship from Textango.[28]
Off Spring released a free single ‘Hammerhead’ ahead of their album ‘Rise and Fall’.[29]
McFly released a new album and allowed it to be distributed for free in a UK newspaper.[30]
Prince who released a new album last year and gave it away for free with a newspaper, sold out 21 concerts.[31] In the past he has also experimented with company sponsorship, setting up a subscription fan club and regularly performing at a Vegas venue that he purchased.[32]
Jill Sobule set up a tiered priced donation and pre purchase scheme which included a range of packages for fans to buy to help raise funds to support the recording of a new album ranging from $10 for a digital download when the album was released to $10,000 for the opportunity to sing or perform on the album.[33]
Francis and the Lights are another band that experimented with a new business model, setting up a company and allowing fans to invest in the recording of their new album. They raised $100,000 from the Normative Music Company.[34]
Tasmin Little, a classical violinist, also released a new album on the internet for free to increase her fan base.[35]
A number of organisations are also emerging that help independent artists to develop and sustain new business models. These include:
SongVest allows fans to invest in their favourite artists by giving them the chance to own a percentage of the writer’s shares of songs. The site operates on an auction basis allowing fans to bid for royalty shares enabling them to get paid each time the song is used. However the artist retains the right to determine when the song can be used.[36]
BandCamp is a system which facilitates the set up of websites for bands allowing them to stream their tracks, give away free downloads, allows fans to set their own price for tracks and/or let the band set the price to be paid for their music.[37]
SellABand is a UK business that helps bands to raise the finances required to record an album and then supports the artist by providing production and marketing assistance. Fans receive dividends based on their investment in the album.[38]
ArtistShare has operated since 2003 and allows fans to help finance albums by gaining access to the creative process. The organisation offers limited edition recordings, VIP access to recording sessions and credits listing on the CD.[39]
BandStocks allows fans to invest as little as £10 to assist in the financing of an artist’s record in exchange for a financial stake in the album, credits and special privileges.[40]
CASH Music is an organisation seeking to enhance the community relationship between fans and bands as well as offering a range of business models for artists including selling and giving away works and a donation scheme to help finance artists.[41]
PopCuts is a new scheme started in Berkeley which charges users $0.99 cents for a song but then rewards them by giving them a percentage of in store credits when other people purchase the track. The scheme rewards early purchasers the most and at the time of its launch had a catalogue of 700 songs from 200 artists. Ten to twenty percent of the sale price goes to the company with the artists able to determine how much of the rest of the money gets passed on to fans.[42]
TopSpin is not a record label but a business that seeks to assist bands to engage in ecommerce and to embrace new business models in the digital environment.[43]
SliceThePie is a music site that allows fans to explore new music and raises funds for bands to record albums. In March 2008 the first album was released by The Apls after they raised the minimum $30,000 to enable them to record. The site started in June 2007 with 12 albums financed so far from the 7,000 artists that have signed up.[44]
Jamendo passed the milestone of making its 10,000th album available for free in 2008.[45]
In recent times there has been a rise in the number of music sites that offer content for free.
These include: iLike, Altsounds, bt.etree.org, Legaltorrents, Stereogum, SXSW, Unsigned Band Web, Soundclick’s music page, Honc, Garage Band, DMusic, Fuzz, iCompositions, The Internet Archive, Jamendo, Peoplesound, Epitonic, Fat Wreck Chords, Hellcat Records, Subpop, Stereokiller, Anti’s Slogan, 3hive, itsfreedownloads, mp3.com, Purevolume, Musicdownload.com, Last.FM, Stage.FM, iSound, We7, SpiralFrog, Blentwell, MTV, ClassicCat, and Spinner[46]. Some of these sites allow streaming, others are supported by advertising and some allow free downloads.
Bundling infinite goods with the sale of scare goods such as concerts and merchandising has become more widely accepted as a genuine business model in the digital age. Whilst noting that merchandising is merely one part of the equation of the new business models that are emerging, the T-Shirt industry turns over $40 billion per year compared with global record sales of $31.8 billion in 2006.[47]
The new business models that have emerged all have the fans at the centre of their structures leveraging financial support from free goods. One theory that has emerged regarding these business models is that to be successful, bands need to establish a core group of fans. The term coined to describe this theory was ‘1,000 True Fans’ and was first noted by Kevin Kelly in March 2008 as being the point at which artists from the long tail are able to garner enough support to sustain their careers.[48]
[1] TechDirt, Radiohead's Physical Album Selling Well (8 January 2008) <http://www.techdirt.com/articles/20080107/191334.shtml> at 11 January 2008
[2] TechDirt, Details Released On The Radiohead Experiment Results: A Tremendous Success (16 October 2008) <http://www.techdirt.com/articles/20081015/1640202552.shtml> at 19 October 2008
[3] Digital Music News, Jackpot at the End of In Rainbows? Radiohead Sales Surpass 3 Million (15 October 2008) <http://www.digitalmusicnews.com/stories/101508rainbow> at 15 October 2008
[4] Digital Music News, The Radiohead Campaign: An Unqualified Success? (4 August 2008) <http://www.digitalmusicnews.com/stories/080308radiohead> at 7 August 2008; Financial Times, Music industry ‘should embrace illegal websites’ (3 August 2008) <http://www.ft.com/cms/s/0/e72884f6-6175-11dd-af94-000077b07658.html?nclick_check=1> at 6 August 2008
[5] Digital Music News, The Radiohead Campaign: An Unqualified Success? (4 August 2008) <http://www.digitalmusicnews.com/stories/080308radiohead> at 7 August 2008
[6] Digital Music News, Radiohead Perches Atop US Album Sales Chart (9 January 2008) <http://www.digitalmusicnews.com/stories/010908radiohead> at 11 January 2008; Digital Music News, A More Traditional Radiohead Scores British Top Slot (7 January 2008) <http://www.digitalmusicnews.com/stories/010707radiohead> at 11 January 2008; The Register, Radiohead top UK album chart (7 January 2008) <http://www.theregister.co.uk/2008/01/07/radiohead_album_chart/> at 8 January 2008
[7] TechDirt, Trent Reznor Continues To Show Different Ways To Connect With Fans (14 July 2008) <http://www.techdirt.com/articles/20080713/1721051663.shtml> at 16 July 2008
[8] Digital Music News, This One's On the Me: Reznor Just Gives It Away (6 May 2008) <http://www.digitalmusicnews.com/stories/050508reznor> at 7 May 2008; TorrentFreak, NIN Confirms Uploads to Public and Private Torrent Sites (5 March 2008) <http://torrentfreak.com/nin-confirms-bittorrent-uploads-080305/> at 11 March 2008; ArsTechnica, Reznor makes $750,000 even when the music is free (5 March 2008) <http://arstechnica.com/news.ars/post/20080305-reznor-makes-750000-even-when-the-music-is-free.html> at 6 March 2008; ZeroPaid, NIN Releases Part of New Album on BitTorrent (5 March 2008) <http://www.zeropaid.com/news/9305/NIN+Releases+Part+of+New+Album+on+BitTorrent> at 6 March 2008; TechDirt, Trent Reznor Continues Business Model Experiments: Releases Latest Album Online (3 March 2008) <http://www.techdirt.com/articles/20080302/234646401.shtml> at 5 March 2008; Digital Music News, NIN Injecting Steroids Into Radiohead Model (3 March 2008) <http://www.digitalmusicnews.com/stories/030208nin> at 4 March 2008
[9] ArsTechnica, Reznor makes $750,000 even when the music is free (5 March 2008) <http://arstechnica.com/news.ars/post/20080305-reznor-makes-750000-even-when-the-music-is-free.html> at 6 March 2008
[10] TechDirt, Reznor Grosses $1.6 Million In The First Week Of Ghosts I-IV (14 March 2008) <http://www.techdirt.com/articles/20080313/171933538.shtml> at 18 March 2008; Digital Music News, How to Make $1.6 Million In a Week, by Trent Reznor (13 March 2008) <http://www.digitalmusicnews.com/stories/031208reznor> at 18 March 2008; ArsTechnica, Reznor makes $750,000 even when the music is free (5 March 2008) <http://arstechnica.com/news.ars/post/20080305-reznor-makes-750000-even-when-the-music-is-free.html> at 6 March 2008; TechDirt, Nine Inch Nails Sells Out Of $300 Deluxe Edition In Under Two Days (4 March 2008) <http://www.techdirt.com/articles/20080304/162842435.shtml> at 6 March 2008; Digital Music News, How to Make $750,000 Overnight, by Trent Reznor (5 March 2008) <http://www.digitalmusicnews.com/stories/030408nin> 6 March 2008; The Register, Nine Inch Nails cracks net distribution (maybe) (3 March 2008) <http://www.theregister.co.uk/2008/03/03/nine_inch_nails_album_released_online/> at 5 March 2008
[11] Digital Music News, This One's On the Me: Reznor Just Gives It Away (6 May 2008) <http://www.digitalmusicnews.com/stories/050508reznor> at 7 May 2008; TechDirt, Trent Reznor Gives Away New Album As A Completely Free Download (5 May 2008) <http://www.techdirt.com/articles/20080505/0908591030.shtml> at 7 May 2008
[12] TechDirt, Trent Reznor Gives People A Reason To Buy Latest CD Even Though It's Free (25 July 2008) <http://www.techdirt.com/articles/20080725/0215281791.shtml> at 28 July 2008
[13] ZeroPaid, NIN Releases Album Download Details via Google Earth (27 June 2008) <http://www.zeropaid.com/news/9593/NIN+Releases+Album+Download+Details+via+Google+Earth> at 27 June 2008
[14] TechDirt, Amazing What You Can Do When You Don't Sue Your Fans (26 September 2008) <http://www.techdirt.com/articles/20080924/0323382354.shtml> at 5 October 2008; ZeroPaid, Trent Reznor Asks NIN Fans to Take Music Survey (24 September 2008) <http://www.zeropaid.com/news/9772/Trent+Reznor+Asks+NIN+Fans+to+Take+Music+Survey> at 26 September 2008
[15] TechDirt, Trent Reznor Continues To Show Different Ways To Connect With Fans (14 July 2008) <http://www.techdirt.com/articles/20080713/1721051663.shtml> at 16 July 2008
[16] ZeroPaid, NIN Releases Album Download Details via Google Earth (27 June 2008) <http://www.zeropaid.com/news/9593/NIN+Releases+Album+Download+Details+via+Google+Earth> at 27 June 2008; ZeroPaid, NIN Offers Free Download of New Download of New Tour Sampler (7 June 2008) <http://www.zeropaid.com/news/9536/NIN+Offers+Free+Download+of+New+Tour+Sampler> at 9 June 2008; TechDirt, Trent Reznor Continues To Show How Free Music Works In A Business (6 June 2008) <http://www.techdirt.com/articles/20080605/1638421319.shtml> at 8 June 2008
[17] Digital Music News, Reznor Rampage Continues; Touring Experiment Next (5 May 2008) <http://www.digitalmusicnews.com/stories/050508nin> at 6 May 2008; Digital Music News, Marvelous Result: Reznor Disciple Finds $300,000 (14 April 2008) <http://www.digitalmusicnews.com/stories/041308niggy> at 17 April 2008
[18] TechDirt, Trent Reznor's Path To Accepting And Embracing New Business Models (9 June 2008) <http://www.techdirt.com/articles/20080608/2321301340.shtml> at 13 June 2008; TechDirt, Saul Williams Agrees That It's Way Too Early To Be Disheartened (11 January 2008) <http://www.techdirt.com/articles/20080111/111158.shtml> at 18 January 2008; Digital Music News, Reznor Pet Project Yields Mixed Results, Some Cash (7 January 2008) <http://www.digitalmusicnews.com/stories/010707nine> at 11 January 2008; TechDirt, Dear Trent Reznor: Don't Be Disheartened Yet (4 January 2008) <http://www.techdirt.com/articles/20080104/015516.shtml> at 8 January 2008
[19] Digital Music News, Resnikoff's Parting Shot: Where's My Long Tail Playbook? (12 May 2008) <http://www.digitalmusicnews.com/stories/051308parting> at 21 May 2008
[20] Digital Music News, Marvelous Result: Reznor Disciple Finds $300,000 (14 April 2008) <http://www.digitalmusicnews.com/stories/041308niggy> at 17 April 2008
[21] Digital Music News, Offspring Latest to Spin Freebie Single Download (6 May 2008) <http://www.digitalmusicnews.com/stories/050508offspring> at 7 May 2008; The Register, Radiohead diss freetards (30 April 2008) <http://www.theregister.co.uk/2008/04/30/radiohead_in_rainbows/> at 2 May 2008; Digital Music News, Coldplay Tossing Freebie Singles, Live Dates... (29 April 2008) <http://www.digitalmusicnews.com/stories/042808coldplay> at 30 April 2008; The Register, Coldplay in digital and vinyl giveaway (28 April 2008) <http://www.theregister.co.uk/2008/04/28/coldplay_giveaway/> at 29 April 2008
[22] Digital Music News, Coldplay Freebie Draws Healthy Crowds, Healthy Listens (30 April 2008) <http://www.digitalmusicnews.com/stories/042908coldplay> at 2 May 2008
[23] TechDirt, Another Band Starts Bundling Scarce And Infinite Goods (16 October 2008) <http://www.techdirt.com/articles/20081010/1357592518.shtml> at 19 October 2008
[24] ZeroPaid, Marillion Outdoes Radiohead, Releases Album on BitTorrent (14 September 2008) <http://www.zeropaid.com/news/9750/Marillion+Outdoes+Radiohead%2C+Releases+Album+on+BitTorrent> at 21 September 2008; ArsTechnica, Some band you've never heard of releases free album (10 September 2008) <http://arstechnica.com/news.ars/post/20080910-some-band-youve-never-heard-of-releases-free-album.html> at 10 September 2008; P2p Blog, Will Marillion P2P release backfire? (10 September 2008) <http://www.p2p-blog.com/item-843.html> at 12 September 2008
[25] TechDirt, Marillion Takes The Next Step And Gives Music Away For Free (11 September 2008) <http://www.techdirt.com/articles/20080910/2316262230.shtml> at 14 September 2008; TechDirt, Musician Talks About Success In Getting Fans To Pay For The Album Before Its Created (15 August 2008) <http://www.techdirt.com/articles/20080814/0302431975.shtml> at 20 August 2008
[26] TechDirt, Hugh Cornwell Is Still Not A Taxi Driver; Musician Learns To Embrace Free (16 September 2008) <http://www.techdirt.com/articles/20080910/0340092223.shtml> at 21 September 2008
[27] TechDirt, UK Band Admits It's 'Utterly Dependent' On Piracy (27 August 2008) <http://www.techdirt.com/articles/20080826/2227062107.shtml> at 1 September 2008
[28] Digital Music News, Pennywise, Poundwise: MySpace Free Experiment Pays Off (15 May 2008) <http://www.digitalmusicnews.com/stories/051808pennywise> at 21 May 2008
[29] Digital Music News, Offspring Latest to Spin Freebie Single Download (6 May 2008) <http://www.digitalmusicnews.com/stories/050508offspring> at 7 May 2008
[30] Digital Music News, Newly Independent Pop Band McFly Gives Away Free CD With Newspaper (27 June 2008) <http://www.techdirt.com/articles/20080627/0135431533.shtml> at 27 June 2008
[31] TechDirt, EMI Brings Newspaper Free Music Giveaway To The US (30 January 2008)<http://www.techdirt.com/articles/20080129/192849117.shtml> at 4 February 2008
[32] TechDirt, Prince: So Close, Yet So Far (29 October 2008) <http://www.techdirt.com/articles/20081023/1928292632.shtml> at 30 October 2008
[33] Wired, Jill Sobule Goes to Fans for Album Financing (5 March 2008) <http://blog.wired.com/music/2008/03/jill-sobule-goe.html> at 6 March 2008; TechDirt, Jill Sobule The Latest Musician To Embrace New Music Business Models (16 January 2008) <http://www.techdirt.com/articles/20080115/095022.shtml> at 18 January 2008
[34] TechDirt, Band Incorporates As A Company And Raises Money, Rather Than Signing With A Label (6 November 2008) <http://www.techdirt.com/articles/20081105/0239362744.shtml> at 7 November 2008
[35] TechDirt, Violinist To Release Record For Free Online (9 January 2008) <http://www.techdirt.com/articles/20080108/15161945.shtml> at 11 January 2008
[36] ZeroPaid, SongVest - Buy a Percentage of Songwriter's Royalty Check? (13 September 2008) <http://www.zeropaid.com/news/9747/SongVest+-+Buy+a+Percentage+of+Songwriter%27s+Royalty+Check%3F> at 21 September 2008
[37] TechDirt, So, This One Time, At Bandcamp, I Made It Easy To Offer Fans New Music (17 September 2008) <http://www.techdirt.com/articles/20080917/1441412296.shtml> at 21 September 2008
[38] Digital Music News, Fan-Funded Space Starts to Grow, Slicethepie Rumbles (28 February 2008) <http://www.digitalmusicnews.com/stories/022708fan> at 29 February 2008
[39] Artists Share, About Us <http://www.artistshare.com/home/about.aspx> at 7 December 2008
[40] Bandstocks, How it Works: One Minute Version for Artists <http://www.bandstocks.com/Page.htm?action=HowItWorksArtist> at 7 December 2009
[41] Creative Commons, CASH Music (29 July 2008) <http://creativecommons.org/weblog/entry/8602> at 20 August 2008
[42] Siliconvalley.com/Associated Press, Berkeley-based music site gives fans a cut of tune sales (3 September 2008) <http://www.siliconvalley.com/news/ci_10370690> at 5 September 2008
[43] TechDirt, The New Music Business: Enabling Musicians To Take Advantage Of New Business Models (24 June 2008) <http://www.techdirt.com/articles/20080623/0154541476.shtml> at 26 June 2008
[44] Digital Media Wire, Music Community Slicethepie Releasing First Fan-Financed Album (6 March 2008) <http://www.dmwmedia.com/news/2008/03/06/music-community-slicethepie-releasing-first-fan-financed-album> at 18 March 2008; Digital Music News, Fan-Funded Space Starts to Grow, Slicethepie Rumbles (28 February 2008) <http://www.digitalmusicnews.com/stories/022708fan> at 29 February 2008
[45] Creative Commons, Jamendo Publishes 10,000th CC-licensed album! (20 June 2008) <http://creativecommons.org/weblog/entry/8383> at 27 June 2008
[46] ZeroPaid, Where to Get Free and Legal Music (3 September 2008) <http://www.zeropaid.com/news/9732/Where+to+Get+Free+and+Legal+Music> at 4 September 2008
[47] TechDirt, Turns Out There's Lottttttttssss Of Money To Be Made In T-Shirts (26 November 2008) <http://www.techdirt.com/articles/20081124/1709222941.shtml> at 28 November 2008
[48] The Technium, 1,000 True Fans (4 March 2008) <http://www.kk.org/thetechnium/archives/2008/03/1000_true_fans.php> at 23 March 2008; Digital Music News, The Best Kept Secrets Behind Viral Distribution... (20 March 2008) <http://www.digitalmusicnews.com/stories/031908youtube> at 23 March 2008; TechDirt, Does The Math On 1,000 True Fans Add Up? (14 March 2008) <http://www.techdirt.com/articles/20080312/095631518.shtml> at 18 March 2008; TechDirt, The Path To Success As A Content Creator: Building Up Your True Fans (5 March 2008) <http://www.techdirt.com/articles/20080304/174129438.shtml> at 7 March 2008
These included:
Radiohead released their album In Rainbows as a pre release promotional strategy and allowed fans to set the price when downloading it.[1] They then removed the free downloads and sold the CD in stores, selling 1.75 million albums.[2] When including all digital sales the number of units shipped was reported to be 3 million.[3] In addition to this between October 10th and November 3rd 2007 there were 2.3 million downloads facilitated by BitTorrent.[4] The band then went on to sell out their tour.[5] Radiohead made it to No1 in both the USA and UK.[6]
Trent Reznor and Nine Inch Nails, who had already begun experimenting with promotional strategies such as hiding flashdrives in toilets of their concerts for their fans to find, released a four disc instrumental work called Ghosts I-IV with a tiered pricing structure.[7] Fans were able to download volume I for free by registering on the bands website or through BitTorrent and other file sharing networks, or they could pay $5 for all four of the volumes plus a 40 page PDF booklet, or they could elect to pay $10 for the albums on two CDs (with an immediate download), or they could pay $75 for a deluxe edition set which included the two CDs, a data DVD and Blu-ray disc or fans could purchase a limited edition set (2,500 copies) of the music plus all of the material in the $75 package plus four LP Vinyl records and two limited edition Giclee prints for $300.[8] The album was also licensed under a Creative Commons Non Commercial Attribution license to enable free sharing.[9] The album grossed $1.6million in the first week it went on sale.[10] Nine Inch Nails then released another album called The Slip completely for free to thank their loyal supporters.[11] The album was also available as a limited numbered edition in CD, DVD and vinyl with 250,000 copies pressed.[12] The band also later released a Google Earth map showing where the 1.4 million people who downloaded The Slip were geographically located.[13] They later engaged in direct fan consultation and asked fans to complete a survey on their website to enable them to learn more about what their fans wanted in the future.[14] To further engage fans Reznor also hid concert tickets around Los Angeles and posted clues and coordinates on their website so fans could find the free concert tickets.[15] In preparation for their upcoming concert they also gave away a free EP of the supporting artists for fans.[16] Premium tickets for the concerts were made available only through the bands website to ensure that fans and not scalpers would be able to access them.[17]
Saul Williams, with the assistance of Trent Reznor, also enabled fans to downloads his album for free or pay $5.00.[18] After an older track of Williams was used in a Nike commercial, downloads increased and he made over $300,000 from the album and his concert series sold out.[19] Over 225,000 people downloaded the album with 60,000 electing to pay $5.00.[20]
Coldplay released a single ‘Violet Hill’ for free ahead of the release date of their new album.[21] On Last.fm the track was played more than 10,000 times within the first 5 hours of its availability.[22]
Mudvayne started a scheme called The Album is the Ticket which bundled a one year subscription to the bands fan club with each album purchased.[23]
Marillion allowed their new album to be downloaded for free and used file sharing networks to assist with the distribution. Fans were a little disappointed with the use of DRM – the band used Music Glue to help gather the contact details of fans which required them to enter their email address before being able to swap encoded music for DRM free downloads. This was to help the band to develop their fan base and enable them to contact them about upcoming concerts.[24] In the past the band has produced a number of albums by getting fans to invest prior to their recording.[25]
Hugh Cornwell, formerly with the band the Stranglers, offered his latest album as a free download from his official website and at the same time gave fans the chance to buy a CD or vinyl copy. He also sold a DVD of the recording process of the album which was released as a film and played in cinemas which he attended and participated in a Question and Answer session with fans.[26]
Show of Hands is another band that has embraced file sharing stating that the technology enables them to expand their audience and has improved their record sales.[27]
Penny Wise gave away an album on MySpace which was downloaded 400,000 times in conjunction with sponsorship from Textango.[28]
Off Spring released a free single ‘Hammerhead’ ahead of their album ‘Rise and Fall’.[29]
McFly released a new album and allowed it to be distributed for free in a UK newspaper.[30]
Prince who released a new album last year and gave it away for free with a newspaper, sold out 21 concerts.[31] In the past he has also experimented with company sponsorship, setting up a subscription fan club and regularly performing at a Vegas venue that he purchased.[32]
Jill Sobule set up a tiered priced donation and pre purchase scheme which included a range of packages for fans to buy to help raise funds to support the recording of a new album ranging from $10 for a digital download when the album was released to $10,000 for the opportunity to sing or perform on the album.[33]
Francis and the Lights are another band that experimented with a new business model, setting up a company and allowing fans to invest in the recording of their new album. They raised $100,000 from the Normative Music Company.[34]
Tasmin Little, a classical violinist, also released a new album on the internet for free to increase her fan base.[35]
A number of organisations are also emerging that help independent artists to develop and sustain new business models. These include:
SongVest allows fans to invest in their favourite artists by giving them the chance to own a percentage of the writer’s shares of songs. The site operates on an auction basis allowing fans to bid for royalty shares enabling them to get paid each time the song is used. However the artist retains the right to determine when the song can be used.[36]
BandCamp is a system which facilitates the set up of websites for bands allowing them to stream their tracks, give away free downloads, allows fans to set their own price for tracks and/or let the band set the price to be paid for their music.[37]
SellABand is a UK business that helps bands to raise the finances required to record an album and then supports the artist by providing production and marketing assistance. Fans receive dividends based on their investment in the album.[38]
ArtistShare has operated since 2003 and allows fans to help finance albums by gaining access to the creative process. The organisation offers limited edition recordings, VIP access to recording sessions and credits listing on the CD.[39]
BandStocks allows fans to invest as little as £10 to assist in the financing of an artist’s record in exchange for a financial stake in the album, credits and special privileges.[40]
CASH Music is an organisation seeking to enhance the community relationship between fans and bands as well as offering a range of business models for artists including selling and giving away works and a donation scheme to help finance artists.[41]
PopCuts is a new scheme started in Berkeley which charges users $0.99 cents for a song but then rewards them by giving them a percentage of in store credits when other people purchase the track. The scheme rewards early purchasers the most and at the time of its launch had a catalogue of 700 songs from 200 artists. Ten to twenty percent of the sale price goes to the company with the artists able to determine how much of the rest of the money gets passed on to fans.[42]
TopSpin is not a record label but a business that seeks to assist bands to engage in ecommerce and to embrace new business models in the digital environment.[43]
SliceThePie is a music site that allows fans to explore new music and raises funds for bands to record albums. In March 2008 the first album was released by The Apls after they raised the minimum $30,000 to enable them to record. The site started in June 2007 with 12 albums financed so far from the 7,000 artists that have signed up.[44]
Jamendo passed the milestone of making its 10,000th album available for free in 2008.[45]
In recent times there has been a rise in the number of music sites that offer content for free.
These include: iLike, Altsounds, bt.etree.org, Legaltorrents, Stereogum, SXSW, Unsigned Band Web, Soundclick’s music page, Honc, Garage Band, DMusic, Fuzz, iCompositions, The Internet Archive, Jamendo, Peoplesound, Epitonic, Fat Wreck Chords, Hellcat Records, Subpop, Stereokiller, Anti’s Slogan, 3hive, itsfreedownloads, mp3.com, Purevolume, Musicdownload.com, Last.FM, Stage.FM, iSound, We7, SpiralFrog, Blentwell, MTV, ClassicCat, and Spinner[46]. Some of these sites allow streaming, others are supported by advertising and some allow free downloads.
Bundling infinite goods with the sale of scare goods such as concerts and merchandising has become more widely accepted as a genuine business model in the digital age. Whilst noting that merchandising is merely one part of the equation of the new business models that are emerging, the T-Shirt industry turns over $40 billion per year compared with global record sales of $31.8 billion in 2006.[47]
The new business models that have emerged all have the fans at the centre of their structures leveraging financial support from free goods. One theory that has emerged regarding these business models is that to be successful, bands need to establish a core group of fans. The term coined to describe this theory was ‘1,000 True Fans’ and was first noted by Kevin Kelly in March 2008 as being the point at which artists from the long tail are able to garner enough support to sustain their careers.[48]
[1] TechDirt, Radiohead's Physical Album Selling Well (8 January 2008) <http://www.techdirt.com/articles/20080107/191334.shtml> at 11 January 2008
[2] TechDirt, Details Released On The Radiohead Experiment Results: A Tremendous Success (16 October 2008) <http://www.techdirt.com/articles/20081015/1640202552.shtml> at 19 October 2008
[3] Digital Music News, Jackpot at the End of In Rainbows? Radiohead Sales Surpass 3 Million (15 October 2008) <http://www.digitalmusicnews.com/stories/101508rainbow> at 15 October 2008
[4] Digital Music News, The Radiohead Campaign: An Unqualified Success? (4 August 2008) <http://www.digitalmusicnews.com/stories/080308radiohead> at 7 August 2008; Financial Times, Music industry ‘should embrace illegal websites’ (3 August 2008) <http://www.ft.com/cms/s/0/e72884f6-6175-11dd-af94-000077b07658.html?nclick_check=1> at 6 August 2008
[5] Digital Music News, The Radiohead Campaign: An Unqualified Success? (4 August 2008) <http://www.digitalmusicnews.com/stories/080308radiohead> at 7 August 2008
[6] Digital Music News, Radiohead Perches Atop US Album Sales Chart (9 January 2008) <http://www.digitalmusicnews.com/stories/010908radiohead> at 11 January 2008; Digital Music News, A More Traditional Radiohead Scores British Top Slot (7 January 2008) <http://www.digitalmusicnews.com/stories/010707radiohead> at 11 January 2008; The Register, Radiohead top UK album chart (7 January 2008) <http://www.theregister.co.uk/2008/01/07/radiohead_album_chart/> at 8 January 2008
[7] TechDirt, Trent Reznor Continues To Show Different Ways To Connect With Fans (14 July 2008) <http://www.techdirt.com/articles/20080713/1721051663.shtml> at 16 July 2008
[8] Digital Music News, This One's On the Me: Reznor Just Gives It Away (6 May 2008) <http://www.digitalmusicnews.com/stories/050508reznor> at 7 May 2008; TorrentFreak, NIN Confirms Uploads to Public and Private Torrent Sites (5 March 2008) <http://torrentfreak.com/nin-confirms-bittorrent-uploads-080305/> at 11 March 2008; ArsTechnica, Reznor makes $750,000 even when the music is free (5 March 2008) <http://arstechnica.com/news.ars/post/20080305-reznor-makes-750000-even-when-the-music-is-free.html> at 6 March 2008; ZeroPaid, NIN Releases Part of New Album on BitTorrent (5 March 2008) <http://www.zeropaid.com/news/9305/NIN+Releases+Part+of+New+Album+on+BitTorrent> at 6 March 2008; TechDirt, Trent Reznor Continues Business Model Experiments: Releases Latest Album Online (3 March 2008) <http://www.techdirt.com/articles/20080302/234646401.shtml> at 5 March 2008; Digital Music News, NIN Injecting Steroids Into Radiohead Model (3 March 2008) <http://www.digitalmusicnews.com/stories/030208nin> at 4 March 2008
[9] ArsTechnica, Reznor makes $750,000 even when the music is free (5 March 2008) <http://arstechnica.com/news.ars/post/20080305-reznor-makes-750000-even-when-the-music-is-free.html> at 6 March 2008
[10] TechDirt, Reznor Grosses $1.6 Million In The First Week Of Ghosts I-IV (14 March 2008) <http://www.techdirt.com/articles/20080313/171933538.shtml> at 18 March 2008; Digital Music News, How to Make $1.6 Million In a Week, by Trent Reznor (13 March 2008) <http://www.digitalmusicnews.com/stories/031208reznor> at 18 March 2008; ArsTechnica, Reznor makes $750,000 even when the music is free (5 March 2008) <http://arstechnica.com/news.ars/post/20080305-reznor-makes-750000-even-when-the-music-is-free.html> at 6 March 2008; TechDirt, Nine Inch Nails Sells Out Of $300 Deluxe Edition In Under Two Days (4 March 2008) <http://www.techdirt.com/articles/20080304/162842435.shtml> at 6 March 2008; Digital Music News, How to Make $750,000 Overnight, by Trent Reznor (5 March 2008) <http://www.digitalmusicnews.com/stories/030408nin> 6 March 2008; The Register, Nine Inch Nails cracks net distribution (maybe) (3 March 2008) <http://www.theregister.co.uk/2008/03/03/nine_inch_nails_album_released_online/> at 5 March 2008
[11] Digital Music News, This One's On the Me: Reznor Just Gives It Away (6 May 2008) <http://www.digitalmusicnews.com/stories/050508reznor> at 7 May 2008; TechDirt, Trent Reznor Gives Away New Album As A Completely Free Download (5 May 2008) <http://www.techdirt.com/articles/20080505/0908591030.shtml> at 7 May 2008
[12] TechDirt, Trent Reznor Gives People A Reason To Buy Latest CD Even Though It's Free (25 July 2008) <http://www.techdirt.com/articles/20080725/0215281791.shtml> at 28 July 2008
[13] ZeroPaid, NIN Releases Album Download Details via Google Earth (27 June 2008) <http://www.zeropaid.com/news/9593/NIN+Releases+Album+Download+Details+via+Google+Earth> at 27 June 2008
[14] TechDirt, Amazing What You Can Do When You Don't Sue Your Fans (26 September 2008) <http://www.techdirt.com/articles/20080924/0323382354.shtml> at 5 October 2008; ZeroPaid, Trent Reznor Asks NIN Fans to Take Music Survey (24 September 2008) <http://www.zeropaid.com/news/9772/Trent+Reznor+Asks+NIN+Fans+to+Take+Music+Survey> at 26 September 2008
[15] TechDirt, Trent Reznor Continues To Show Different Ways To Connect With Fans (14 July 2008) <http://www.techdirt.com/articles/20080713/1721051663.shtml> at 16 July 2008
[16] ZeroPaid, NIN Releases Album Download Details via Google Earth (27 June 2008) <http://www.zeropaid.com/news/9593/NIN+Releases+Album+Download+Details+via+Google+Earth> at 27 June 2008; ZeroPaid, NIN Offers Free Download of New Download of New Tour Sampler (7 June 2008) <http://www.zeropaid.com/news/9536/NIN+Offers+Free+Download+of+New+Tour+Sampler> at 9 June 2008; TechDirt, Trent Reznor Continues To Show How Free Music Works In A Business (6 June 2008) <http://www.techdirt.com/articles/20080605/1638421319.shtml> at 8 June 2008
[17] Digital Music News, Reznor Rampage Continues; Touring Experiment Next (5 May 2008) <http://www.digitalmusicnews.com/stories/050508nin> at 6 May 2008; Digital Music News, Marvelous Result: Reznor Disciple Finds $300,000 (14 April 2008) <http://www.digitalmusicnews.com/stories/041308niggy> at 17 April 2008
[18] TechDirt, Trent Reznor's Path To Accepting And Embracing New Business Models (9 June 2008) <http://www.techdirt.com/articles/20080608/2321301340.shtml> at 13 June 2008; TechDirt, Saul Williams Agrees That It's Way Too Early To Be Disheartened (11 January 2008) <http://www.techdirt.com/articles/20080111/111158.shtml> at 18 January 2008; Digital Music News, Reznor Pet Project Yields Mixed Results, Some Cash (7 January 2008) <http://www.digitalmusicnews.com/stories/010707nine> at 11 January 2008; TechDirt, Dear Trent Reznor: Don't Be Disheartened Yet (4 January 2008) <http://www.techdirt.com/articles/20080104/015516.shtml> at 8 January 2008
[19] Digital Music News, Resnikoff's Parting Shot: Where's My Long Tail Playbook? (12 May 2008) <http://www.digitalmusicnews.com/stories/051308parting> at 21 May 2008
[20] Digital Music News, Marvelous Result: Reznor Disciple Finds $300,000 (14 April 2008) <http://www.digitalmusicnews.com/stories/041308niggy> at 17 April 2008
[21] Digital Music News, Offspring Latest to Spin Freebie Single Download (6 May 2008) <http://www.digitalmusicnews.com/stories/050508offspring> at 7 May 2008; The Register, Radiohead diss freetards (30 April 2008) <http://www.theregister.co.uk/2008/04/30/radiohead_in_rainbows/> at 2 May 2008; Digital Music News, Coldplay Tossing Freebie Singles, Live Dates... (29 April 2008) <http://www.digitalmusicnews.com/stories/042808coldplay> at 30 April 2008; The Register, Coldplay in digital and vinyl giveaway (28 April 2008) <http://www.theregister.co.uk/2008/04/28/coldplay_giveaway/> at 29 April 2008
[22] Digital Music News, Coldplay Freebie Draws Healthy Crowds, Healthy Listens (30 April 2008) <http://www.digitalmusicnews.com/stories/042908coldplay> at 2 May 2008
[23] TechDirt, Another Band Starts Bundling Scarce And Infinite Goods (16 October 2008) <http://www.techdirt.com/articles/20081010/1357592518.shtml> at 19 October 2008
[24] ZeroPaid, Marillion Outdoes Radiohead, Releases Album on BitTorrent (14 September 2008) <http://www.zeropaid.com/news/9750/Marillion+Outdoes+Radiohead%2C+Releases+Album+on+BitTorrent> at 21 September 2008; ArsTechnica, Some band you've never heard of releases free album (10 September 2008) <http://arstechnica.com/news.ars/post/20080910-some-band-youve-never-heard-of-releases-free-album.html> at 10 September 2008; P2p Blog, Will Marillion P2P release backfire? (10 September 2008) <http://www.p2p-blog.com/item-843.html> at 12 September 2008
[25] TechDirt, Marillion Takes The Next Step And Gives Music Away For Free (11 September 2008) <http://www.techdirt.com/articles/20080910/2316262230.shtml> at 14 September 2008; TechDirt, Musician Talks About Success In Getting Fans To Pay For The Album Before Its Created (15 August 2008) <http://www.techdirt.com/articles/20080814/0302431975.shtml> at 20 August 2008
[26] TechDirt, Hugh Cornwell Is Still Not A Taxi Driver; Musician Learns To Embrace Free (16 September 2008) <http://www.techdirt.com/articles/20080910/0340092223.shtml> at 21 September 2008
[27] TechDirt, UK Band Admits It's 'Utterly Dependent' On Piracy (27 August 2008) <http://www.techdirt.com/articles/20080826/2227062107.shtml> at 1 September 2008
[28] Digital Music News, Pennywise, Poundwise: MySpace Free Experiment Pays Off (15 May 2008) <http://www.digitalmusicnews.com/stories/051808pennywise> at 21 May 2008
[29] Digital Music News, Offspring Latest to Spin Freebie Single Download (6 May 2008) <http://www.digitalmusicnews.com/stories/050508offspring> at 7 May 2008
[30] Digital Music News, Newly Independent Pop Band McFly Gives Away Free CD With Newspaper (27 June 2008) <http://www.techdirt.com/articles/20080627/0135431533.shtml> at 27 June 2008
[31] TechDirt, EMI Brings Newspaper Free Music Giveaway To The US (30 January 2008)<http://www.techdirt.com/articles/20080129/192849117.shtml> at 4 February 2008
[32] TechDirt, Prince: So Close, Yet So Far (29 October 2008) <http://www.techdirt.com/articles/20081023/1928292632.shtml> at 30 October 2008
[33] Wired, Jill Sobule Goes to Fans for Album Financing (5 March 2008) <http://blog.wired.com/music/2008/03/jill-sobule-goe.html> at 6 March 2008; TechDirt, Jill Sobule The Latest Musician To Embrace New Music Business Models (16 January 2008) <http://www.techdirt.com/articles/20080115/095022.shtml> at 18 January 2008
[34] TechDirt, Band Incorporates As A Company And Raises Money, Rather Than Signing With A Label (6 November 2008) <http://www.techdirt.com/articles/20081105/0239362744.shtml> at 7 November 2008
[35] TechDirt, Violinist To Release Record For Free Online (9 January 2008) <http://www.techdirt.com/articles/20080108/15161945.shtml> at 11 January 2008
[36] ZeroPaid, SongVest - Buy a Percentage of Songwriter's Royalty Check? (13 September 2008) <http://www.zeropaid.com/news/9747/SongVest+-+Buy+a+Percentage+of+Songwriter%27s+Royalty+Check%3F> at 21 September 2008
[37] TechDirt, So, This One Time, At Bandcamp, I Made It Easy To Offer Fans New Music (17 September 2008) <http://www.techdirt.com/articles/20080917/1441412296.shtml> at 21 September 2008
[38] Digital Music News, Fan-Funded Space Starts to Grow, Slicethepie Rumbles (28 February 2008) <http://www.digitalmusicnews.com/stories/022708fan> at 29 February 2008
[39] Artists Share, About Us <http://www.artistshare.com/home/about.aspx> at 7 December 2008
[40] Bandstocks, How it Works: One Minute Version for Artists <http://www.bandstocks.com/Page.htm?action=HowItWorksArtist> at 7 December 2009
[41] Creative Commons, CASH Music (29 July 2008) <http://creativecommons.org/weblog/entry/8602> at 20 August 2008
[42] Siliconvalley.com/Associated Press, Berkeley-based music site gives fans a cut of tune sales (3 September 2008) <http://www.siliconvalley.com/news/ci_10370690> at 5 September 2008
[43] TechDirt, The New Music Business: Enabling Musicians To Take Advantage Of New Business Models (24 June 2008) <http://www.techdirt.com/articles/20080623/0154541476.shtml> at 26 June 2008
[44] Digital Media Wire, Music Community Slicethepie Releasing First Fan-Financed Album (6 March 2008) <http://www.dmwmedia.com/news/2008/03/06/music-community-slicethepie-releasing-first-fan-financed-album> at 18 March 2008; Digital Music News, Fan-Funded Space Starts to Grow, Slicethepie Rumbles (28 February 2008) <http://www.digitalmusicnews.com/stories/022708fan> at 29 February 2008
[45] Creative Commons, Jamendo Publishes 10,000th CC-licensed album! (20 June 2008) <http://creativecommons.org/weblog/entry/8383> at 27 June 2008
[46] ZeroPaid, Where to Get Free and Legal Music (3 September 2008) <http://www.zeropaid.com/news/9732/Where+to+Get+Free+and+Legal+Music> at 4 September 2008
[47] TechDirt, Turns Out There's Lottttttttssss Of Money To Be Made In T-Shirts (26 November 2008) <http://www.techdirt.com/articles/20081124/1709222941.shtml> at 28 November 2008
[48] The Technium, 1,000 True Fans (4 March 2008) <http://www.kk.org/thetechnium/archives/2008/03/1000_true_fans.php> at 23 March 2008; Digital Music News, The Best Kept Secrets Behind Viral Distribution... (20 March 2008) <http://www.digitalmusicnews.com/stories/031908youtube> at 23 March 2008; TechDirt, Does The Math On 1,000 True Fans Add Up? (14 March 2008) <http://www.techdirt.com/articles/20080312/095631518.shtml> at 18 March 2008; TechDirt, The Path To Success As A Content Creator: Building Up Your True Fans (5 March 2008) <http://www.techdirt.com/articles/20080304/174129438.shtml> at 7 March 2008
Friday, December 5, 2008
Music with a Message
Here are the songs I am playing on my radio show this weekend – only a few weeks left as I am not presenting in (at least the first half of) 2009 so I can concentrate on other things.
Ben Harper, With My Own Two Hands
Blue King Brown, Come and Check Your Head
Blue King Brown, One Day
Bob Marley & The Wailers, No Woman No Cry
Bob Marley & The Wailers, Get Up Stand Up
John Butler Trio, The Gov Did Nothin’
Lizzie West & The White Buffalo, 19 Miles to Baghdad
Ani Di Franco, Waist Deep in the Big Muddy
David Byrne, Nothin’ But Flowers
The Pixies, Monkey Gone to Heaven
Our Land Our Home (Paul Kelly), From Little Things Big Things Grow
Our Land Our Home, Respect for Eddie Mabo
Neville Brothers, Will The Circle Be Unbroken
Betty Mae Fikes, Up Over My Head/This Little Light of Mine
Jenn Cleary, Peace in Our World
Sly & The Family Stone, Stand!
Anne Feeney, Have You Been to Jail for Justice?
Midnight Oil, Blue Sky Mine
Black Eye Peas, Third Eye
Bob Dylan, The Times They Are A Changin’
Jackson Browne, For America
John Mellancamp, To Washington
P!nk, Dear Mr President
David Dondero, Pre Invasion Jitters
Eric Bogle, No Man’s Land
Country Joe & The Fish, I Feel Like I’m Fixin’ To Die Rag
Coldplay, Politik
Sarah McLachlan, World on Fire
Peter Tosh, Legalise It
Ben Harper, With My Own Two Hands
Blue King Brown, Come and Check Your Head
Blue King Brown, One Day
Bob Marley & The Wailers, No Woman No Cry
Bob Marley & The Wailers, Get Up Stand Up
John Butler Trio, The Gov Did Nothin’
Lizzie West & The White Buffalo, 19 Miles to Baghdad
Ani Di Franco, Waist Deep in the Big Muddy
David Byrne, Nothin’ But Flowers
The Pixies, Monkey Gone to Heaven
Our Land Our Home (Paul Kelly), From Little Things Big Things Grow
Our Land Our Home, Respect for Eddie Mabo
Neville Brothers, Will The Circle Be Unbroken
Betty Mae Fikes, Up Over My Head/This Little Light of Mine
Jenn Cleary, Peace in Our World
Sly & The Family Stone, Stand!
Anne Feeney, Have You Been to Jail for Justice?
Midnight Oil, Blue Sky Mine
Black Eye Peas, Third Eye
Bob Dylan, The Times They Are A Changin’
Jackson Browne, For America
John Mellancamp, To Washington
P!nk, Dear Mr President
David Dondero, Pre Invasion Jitters
Eric Bogle, No Man’s Land
Country Joe & The Fish, I Feel Like I’m Fixin’ To Die Rag
Coldplay, Politik
Sarah McLachlan, World on Fire
Peter Tosh, Legalise It
Thursday, December 4, 2008
Year in Review: MySpace Music
MySpace Music launched in 2008 offering users the ability to stream any song from the MySpace catalogue on their MySpace page. There was much contention at the time of the launch that insufficient steps had been taken to include independent and unsigned artists.
While the four major labels were offered equity stakes in addition to shares of advertising revenue and download purchases, independent labels were not offered the same terms.[1] At the time of its launch the only independent label signed to provide music to the service was The Orchard with IODA signing on shortly after.[2] Merlin and A2IM are yet to complete negotiations with the service with reports suggesting that the failure to provide an equity stake is a serious concern.[3]
Many commentators have noted that MySpace has been, in the past, the primary forum in which independent artists were able to gain exposure and build a fan base.[4] The lack of parity in the terms being offered to independent artists is seen to undermine the basis on which the service gained its popularity.[5] While negotiations are continuing there is some speculation that this may lead to an anti-trust investigation.[6]
The situation is even more tenuous for artists that are not signed to any label at all – while they are still able to upload their music to their MySpace page, there is no way for them to enable others to stream songs from their MySpace page nor is there any way for them to recover royalties for downloads.[7]
MySpace Music was reported to have a catalogue of 5 million songs at the time of its launch and hosted 1 billion streams in the first week. It is only available in the United States at the moment.[8]
Positive aspects of the service include the ability for users to select songs from a list by browsing by ‘Top 100’ – this is split into three categories, differentiating between major label artists, independents and unsigned artists[9]. Other positive attributes include links to Amazon which sells DRM free tracks and the ability to create and share playlists.
Questions remain as to whether the service can compete with free and convert file sharers to paid customers.[10]
[1] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008
[2] ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, MySpace Music Inks IODA; Million-Plus Independent Songs (23 October 2008) <http://www.digitalmusicnews.com/stories/102308ioda> at 24 October 2008
[3] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindi> at 5 October 2008; ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008
[4] TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[5] TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[6] The Register, Poptastic MySpace Launches, without indies (26 September 2008) <http://www.theregister.co.uk/2008/09/26/myspace_music_launch/> at 5 October 2008; The Register, MySpace Music hears the antitrust song (18 September 2008) <http://www.theregister.co.uk/2008/09/18/myspace_music_antitrust/> at 21 September 2008
[7] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[8]ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music: One Week, One Billion Streams (2 October 2008) <http://www.digitalmusicnews.com/stories/100108myspace> at 5 October 2008 ; ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008
[9] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[10] TechDirt, MySpace's Music Offering: Ignoring The Elephant In The Room (12 September 2008) <http://www.techdirt.com/articles/20080912/1514312256.shtml> at 21 September 2008
While the four major labels were offered equity stakes in addition to shares of advertising revenue and download purchases, independent labels were not offered the same terms.[1] At the time of its launch the only independent label signed to provide music to the service was The Orchard with IODA signing on shortly after.[2] Merlin and A2IM are yet to complete negotiations with the service with reports suggesting that the failure to provide an equity stake is a serious concern.[3]
Many commentators have noted that MySpace has been, in the past, the primary forum in which independent artists were able to gain exposure and build a fan base.[4] The lack of parity in the terms being offered to independent artists is seen to undermine the basis on which the service gained its popularity.[5] While negotiations are continuing there is some speculation that this may lead to an anti-trust investigation.[6]
The situation is even more tenuous for artists that are not signed to any label at all – while they are still able to upload their music to their MySpace page, there is no way for them to enable others to stream songs from their MySpace page nor is there any way for them to recover royalties for downloads.[7]
MySpace Music was reported to have a catalogue of 5 million songs at the time of its launch and hosted 1 billion streams in the first week. It is only available in the United States at the moment.[8]
Positive aspects of the service include the ability for users to select songs from a list by browsing by ‘Top 100’ – this is split into three categories, differentiating between major label artists, independents and unsigned artists[9]. Other positive attributes include links to Amazon which sells DRM free tracks and the ability to create and share playlists.
Questions remain as to whether the service can compete with free and convert file sharers to paid customers.[10]
[1] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008
[2] ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, MySpace Music Inks IODA; Million-Plus Independent Songs (23 October 2008) <http://www.digitalmusicnews.com/stories/102308ioda> at 24 October 2008
[3] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindi> at 5 October 2008; ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008
[4] TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[5] TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[6] The Register, Poptastic MySpace Launches, without indies (26 September 2008) <http://www.theregister.co.uk/2008/09/26/myspace_music_launch/> at 5 October 2008; The Register, MySpace Music hears the antitrust song (18 September 2008) <http://www.theregister.co.uk/2008/09/18/myspace_music_antitrust/> at 21 September 2008
[7] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[8]ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music: One Week, One Billion Streams (2 October 2008) <http://www.digitalmusicnews.com/stories/100108myspace> at 5 October 2008 ; ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008
[9] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[10] TechDirt, MySpace's Music Offering: Ignoring The Elephant In The Room (12 September 2008) <http://www.techdirt.com/articles/20080912/1514312256.shtml> at 21 September 2008
Year in Review: Leaks
In 2008 there were a number of high profile leaks of albums prior to their official release date. These included:
· Guns and Roses – Chinese Democracy[1]
· AC/DC – Black Ice[2]
· Metallica – Death Magnetic[3]
· Cold Play – Viva La Vida Or Death and All It’s Friends[4]
· Usher – Here I Stand[5]
· U2 – No Line on the Horizon[6]
· R Kelly – 12th Play, 4th Quarter[7]
· Gnarls Barkley – The Odd Couple[8]
Music from The Dears, Nas and Lil Wayne was also found on file sharing networks before being made available for purchase in shops and online.[9]
In each case it appears as though the pre release leaks had little impact on sales.[10] Metallica sold close to 500,000 copies in the first week and a further 337,000 in the second week.[11] Lil Wayne was reported to have secured sales of 1 million albums in the first week despite the leak of his music.[12] Coldplay sold 302,000 copies in the first three days of the album going on sale despite a staggered global release strategy.[13] Usher sold 433,000 units in the first week his album was sold despite the fact that the album was downloaded 554,716 times in the first five days of its pre release leak.[14]
Speculation persists as to whether at some of these leaks are deliberate. Despite the band BuckCherry issuing a press release to complain about their music being leaked it was later established that the initial leak had come from the bands management.[15]
In other cases it appears less likely that the leak was authorised with Kevin Cogill being investigated by the FBI and charged under the Family and Entertainment Copyright Act of 2005 for posting nine tracks from the Guns and Roses album Chinese Democracy on his website.[16] The bloggers arrest highlighted the availability of the album and therefore resulted in more downloads of the tracks.[17]
[1] TechDirt, Guns N' Roses Loves Online Music, On Its Own Terms (20 November 2008) <http://www.techdirt.com/articles/20081120/0736312898.shtml> at 21 November 2008; Digital Music News, Guns N' Roses Single Starts Floating; Album On Deck (23 October 2008) <http://www.digitalmusicnews.com/stories/102208roses> at 24 October 2008; Digital Music News, Axl to Grind: FBI Investigates Chinese Democracy Leak (27 June 2008)<http://www.digitalmusicnews.com/stories/062608chinese> at 28 June 2008; Digital Music News, Guns N' Roses Chases Chinese Democracy Leak... (19 June 2008) <http://www.digitalmusicnews.com/stories/061908guns> at 26 June 2008
[2] ZeroPaid, ACDC 'Black Ice' Leaked to BitTorrent (11 October 2008) <http://www.zeropaid.com/news/9802/ACDC%27s+%27Black+Ice%27+Leaked+to+BitTorrent> at 12 October 2008
[3] Digital Music News, Metallica Slows Down, But Still Stays on Top (26 September 2008) <http://www.digitalmusicnews.com/stories/092508metallica> at 5 October 2008; TechDirt, Metallica Still Struggling With Embracing The Whole File Sharing Thing (16 September 2008) <http://www.techdirt.com/articles/20080916/0258502283.shtml> at 21 September 2008; ZeroPaid, Metallica on Album Leak to BitTorrent: Happy Days (6 September 2008) <http://www.zeropaid.com/news/9738/Metallica+on+Album+Leak+to+BitTorrent%3A+%27Happy+Days%27> at 12 September 2008; TechDirt, Lars Ulrich On Metallica's Latest Album Being Leaked Online: It's Fine, We're Happy (4 September 2008) <http://www.techdirt.com/articles/20080904/0349242167.shtml> at 5 September 2008
[4] Digital Music News, Metallica Album Leaks; Band Plays It Cool... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308metallica> at 4 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; Digital Music News, R. Kelly Album Becomes Latest Leak... (30 July 2008) <http://www.digitalmusicnews.com/stories/072908rkelly> at 31 July 2008; Digital Music News, Coldplay Plays It Well; Chart-Topper In Britain (16 June 2008) <http://www.digitalmusicnews.com/stories/061508coldplay> at 20 June 2008
[5] Digital Music News, Metallica Album Leaks; Band Plays It Cool... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308metallica> at 4 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; Digital Music News, Coldplay Album Starts Leaking; Release Date Mid-June (6 June 2008)<http://www.digitalmusicnews.com/stories/060508coldplay> at 7 June 2008; Digital Music News, Usher Survives; Shifts 433,000 Albums First Week (5 June 2008) <http://www.digitalmusicnews.com/stories/060408usher> at 6 June 2008; Digital Music News, ..But Upcoming Usher Album Starts Leaking (22 May 2008) <http://www.digitalmusicnews.com/stories/052208usherleak> at 4 June 2008
[6] Digital Music News, Developing: Another U2 Piracy Scare Surfaces... (18 August 2008) <http://www.digitalmusicnews.com/stories/081708u2> at 20 August 2008; CNet News, Bono blamed for unreleased U2 songs on Internet (17 August 2008) <http://news.cnet.com/8301-1023_3-10018810-93.html?hhTest=1> at 20 August 2008; ZeroPaid, Bono to Blame for Leaked U2 Tracks (19 August 2008) <http://www.zeropaid.com/news/9704/Bono+to+Blame+for+Leaked+U2+Tracks> at 20 August 2008; The Register, U2 Tracks Disappear From YouTube (18 August 2008) <http://www.theregister.co.uk/2008/08/18/u2_window_leak/> at 20 August 2008
[7] Digital Music News, R. Kelly Album Becomes Latest Leak... (30 July 2008) <http://www.digitalmusicnews.com/stories/072908rkelly> at 31 July 2008
[8] ZeroPaid, New Gnarls Barkley 'The Odd Couple' Album Leaked to BitTorrent (15 March 2008) <http://www.zeropaid.com/news/9330/New+Gnarls+Barkley+%27The+Odd+Couple%27+Album+Leaked+to+BitTorrent%21> at 18 March 2008
[9] TechDirt, Band Actually Promotes The Fact That Its Album Was Leaked (Against Its Wishes) (19 September 2008) <http://www.techdirt.com/articles/20080918/0306542306.shtml> at 21 September 2008; Digital Music News, Metallica Album Leaks; Band Plays It Cool... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308metallica> at 4 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; Digital Music News, R. Kelly Album Becomes Latest Leak... (30 July 2008) <http://www.digitalmusicnews.com/stories/072908rkelly> at 31 July 2008; Digital Music News, Another Inevitable: Upcoming Nas Album Starts Leaking (7 July 2008) <http://www.digitalmusicnews.com/stories/070608nas> at 9 July 2008
[10] Digital Music News, Guns N' Roses Leaker: Now Out on Bail... (28 August 2008) <http://www.digitalmusicnews.com/stories/082808guns> at 1 September 2008
[11] Digital Music News, Metallica Slows Down, But Still Stays on Top (26 September 2008) <http://www.digitalmusicnews.com/stories/092508metallica> at 5 October 2008; Digital Music News, What Leak? Metallica First-Week Edges Towards Half-a-Mil (17 September 2008) <http://www.digitalmusicnews.com/stories/091608metallica> at 21 September 2008
[12] Digital Music News, Another Inevitable: Upcoming Nas Album Starts Leaking (7 July 2008) <http://www.digitalmusicnews.com/stories/070608nas> at 9 July 2008; TechDirt, Despite Leaks, Lil Wayne Album Selling Strong (12 June 2008) <http://www.digitalmusicnews.com/stories/061108lil> at 13 June 2008
[13] Digital Music News, Coldplay Plays It Well; Chart-Topper In Britain (16 June 2008) <http://www.digitalmusicnews.com/stories/061508coldplay> at 20 June 2008; Digital Music News, Coldplay Unleashed In Britain; Indicators Looking Good (13 June 2008) <http://www.digitalmusicnews.com/stories/061208coldplay> at 15 June 2008
[14] Digital Music News, Coldplay Album Starts Leaking; Release Date Mid-June (6 June 2008)<http://www.digitalmusicnews.com/stories/060508coldplay> at 7 June 2008; Digital Music News, Usher Survives; Shifts 433,000 Albums First Week (5 June 2008) <http://www.digitalmusicnews.com/stories/060408usher> at 6 June 2008; Digital Music News, The Usher Leak: Download Estimates Emerge... (26 May 2008) <http://www.digitalmusicnews.com/stories/052608usher> at 4 June 2008
[15] Slyck, Buckcherry Slams BitTorrent Leak (22 July 2008) <http://www.slyck.com/story1718_Buckcherry_Slams_BitTorrent_Leak> at 23 July 2008; TechDirt, Band Leaks Own Tracks To BitTorrent, Pretends To Be Pissed Off (31 July 2008) <http://www.techdirt.com/articles/20080731/1231121854.shtml> at 6 August 2008
[16] TechDirt, Guns N' Roses Loves Online Music, On Its Own Terms (20 November 2008) <http://www.techdirt.com/articles/20081120/0736312898.shtml> at 21 November 2008; TechDirt, Blogger Who Uploaded GNR Album Pleads Guilty, Accepts Deal (11 November 2008) <http://www.techdirt.com/articles/20081110/1939572792.shtml> at 16 November 2008; SiliconValley, Man who posted unreleased Guns N' Roses songs online is charged (1 September 2008) <http://www.siliconvalley.com/news/ci_10358404?nclick_check=1> at 5 September 2008; CNet News, FBI arrests blogger accused of leaking Guns N' Roses tracks (27 August 2008) <http://news.cnet.com/8301-17938_105-10027657-1.html> at 1 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; TechDirt, Doesn't The FBI Have More Important Things To Do Than Chase Down The Guy Who Leaked The New Guns N' Roses Album? (25 June 2008) <http://www.techdirt.com/articles/20080625/0111221510.shtml> at 26 June 2008
[17] TechDirt, Blogger's Arrest Resulted In Much More Downloading Of GNR Music (10 September 2008) <http://www.techdirt.com/articles/20080907/1650382188.shtml> at 12 September 2008
· Guns and Roses – Chinese Democracy[1]
· AC/DC – Black Ice[2]
· Metallica – Death Magnetic[3]
· Cold Play – Viva La Vida Or Death and All It’s Friends[4]
· Usher – Here I Stand[5]
· U2 – No Line on the Horizon[6]
· R Kelly – 12th Play, 4th Quarter[7]
· Gnarls Barkley – The Odd Couple[8]
Music from The Dears, Nas and Lil Wayne was also found on file sharing networks before being made available for purchase in shops and online.[9]
In each case it appears as though the pre release leaks had little impact on sales.[10] Metallica sold close to 500,000 copies in the first week and a further 337,000 in the second week.[11] Lil Wayne was reported to have secured sales of 1 million albums in the first week despite the leak of his music.[12] Coldplay sold 302,000 copies in the first three days of the album going on sale despite a staggered global release strategy.[13] Usher sold 433,000 units in the first week his album was sold despite the fact that the album was downloaded 554,716 times in the first five days of its pre release leak.[14]
Speculation persists as to whether at some of these leaks are deliberate. Despite the band BuckCherry issuing a press release to complain about their music being leaked it was later established that the initial leak had come from the bands management.[15]
In other cases it appears less likely that the leak was authorised with Kevin Cogill being investigated by the FBI and charged under the Family and Entertainment Copyright Act of 2005 for posting nine tracks from the Guns and Roses album Chinese Democracy on his website.[16] The bloggers arrest highlighted the availability of the album and therefore resulted in more downloads of the tracks.[17]
[1] TechDirt, Guns N' Roses Loves Online Music, On Its Own Terms (20 November 2008) <http://www.techdirt.com/articles/20081120/0736312898.shtml> at 21 November 2008; Digital Music News, Guns N' Roses Single Starts Floating; Album On Deck (23 October 2008) <http://www.digitalmusicnews.com/stories/102208roses> at 24 October 2008; Digital Music News, Axl to Grind: FBI Investigates Chinese Democracy Leak (27 June 2008)<http://www.digitalmusicnews.com/stories/062608chinese> at 28 June 2008; Digital Music News, Guns N' Roses Chases Chinese Democracy Leak... (19 June 2008) <http://www.digitalmusicnews.com/stories/061908guns> at 26 June 2008
[2] ZeroPaid, ACDC 'Black Ice' Leaked to BitTorrent (11 October 2008) <http://www.zeropaid.com/news/9802/ACDC%27s+%27Black+Ice%27+Leaked+to+BitTorrent> at 12 October 2008
[3] Digital Music News, Metallica Slows Down, But Still Stays on Top (26 September 2008) <http://www.digitalmusicnews.com/stories/092508metallica> at 5 October 2008; TechDirt, Metallica Still Struggling With Embracing The Whole File Sharing Thing (16 September 2008) <http://www.techdirt.com/articles/20080916/0258502283.shtml> at 21 September 2008; ZeroPaid, Metallica on Album Leak to BitTorrent: Happy Days (6 September 2008) <http://www.zeropaid.com/news/9738/Metallica+on+Album+Leak+to+BitTorrent%3A+%27Happy+Days%27> at 12 September 2008; TechDirt, Lars Ulrich On Metallica's Latest Album Being Leaked Online: It's Fine, We're Happy (4 September 2008) <http://www.techdirt.com/articles/20080904/0349242167.shtml> at 5 September 2008
[4] Digital Music News, Metallica Album Leaks; Band Plays It Cool... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308metallica> at 4 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; Digital Music News, R. Kelly Album Becomes Latest Leak... (30 July 2008) <http://www.digitalmusicnews.com/stories/072908rkelly> at 31 July 2008; Digital Music News, Coldplay Plays It Well; Chart-Topper In Britain (16 June 2008) <http://www.digitalmusicnews.com/stories/061508coldplay> at 20 June 2008
[5] Digital Music News, Metallica Album Leaks; Band Plays It Cool... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308metallica> at 4 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; Digital Music News, Coldplay Album Starts Leaking; Release Date Mid-June (6 June 2008)<http://www.digitalmusicnews.com/stories/060508coldplay> at 7 June 2008; Digital Music News, Usher Survives; Shifts 433,000 Albums First Week (5 June 2008) <http://www.digitalmusicnews.com/stories/060408usher> at 6 June 2008; Digital Music News, ..But Upcoming Usher Album Starts Leaking (22 May 2008) <http://www.digitalmusicnews.com/stories/052208usherleak> at 4 June 2008
[6] Digital Music News, Developing: Another U2 Piracy Scare Surfaces... (18 August 2008) <http://www.digitalmusicnews.com/stories/081708u2> at 20 August 2008; CNet News, Bono blamed for unreleased U2 songs on Internet (17 August 2008) <http://news.cnet.com/8301-1023_3-10018810-93.html?hhTest=1> at 20 August 2008; ZeroPaid, Bono to Blame for Leaked U2 Tracks (19 August 2008) <http://www.zeropaid.com/news/9704/Bono+to+Blame+for+Leaked+U2+Tracks> at 20 August 2008; The Register, U2 Tracks Disappear From YouTube (18 August 2008) <http://www.theregister.co.uk/2008/08/18/u2_window_leak/> at 20 August 2008
[7] Digital Music News, R. Kelly Album Becomes Latest Leak... (30 July 2008) <http://www.digitalmusicnews.com/stories/072908rkelly> at 31 July 2008
[8] ZeroPaid, New Gnarls Barkley 'The Odd Couple' Album Leaked to BitTorrent (15 March 2008) <http://www.zeropaid.com/news/9330/New+Gnarls+Barkley+%27The+Odd+Couple%27+Album+Leaked+to+BitTorrent%21> at 18 March 2008
[9] TechDirt, Band Actually Promotes The Fact That Its Album Was Leaked (Against Its Wishes) (19 September 2008) <http://www.techdirt.com/articles/20080918/0306542306.shtml> at 21 September 2008; Digital Music News, Metallica Album Leaks; Band Plays It Cool... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308metallica> at 4 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; Digital Music News, R. Kelly Album Becomes Latest Leak... (30 July 2008) <http://www.digitalmusicnews.com/stories/072908rkelly> at 31 July 2008; Digital Music News, Another Inevitable: Upcoming Nas Album Starts Leaking (7 July 2008) <http://www.digitalmusicnews.com/stories/070608nas> at 9 July 2008
[10] Digital Music News, Guns N' Roses Leaker: Now Out on Bail... (28 August 2008) <http://www.digitalmusicnews.com/stories/082808guns> at 1 September 2008
[11] Digital Music News, Metallica Slows Down, But Still Stays on Top (26 September 2008) <http://www.digitalmusicnews.com/stories/092508metallica> at 5 October 2008; Digital Music News, What Leak? Metallica First-Week Edges Towards Half-a-Mil (17 September 2008) <http://www.digitalmusicnews.com/stories/091608metallica> at 21 September 2008
[12] Digital Music News, Another Inevitable: Upcoming Nas Album Starts Leaking (7 July 2008) <http://www.digitalmusicnews.com/stories/070608nas> at 9 July 2008; TechDirt, Despite Leaks, Lil Wayne Album Selling Strong (12 June 2008) <http://www.digitalmusicnews.com/stories/061108lil> at 13 June 2008
[13] Digital Music News, Coldplay Plays It Well; Chart-Topper In Britain (16 June 2008) <http://www.digitalmusicnews.com/stories/061508coldplay> at 20 June 2008; Digital Music News, Coldplay Unleashed In Britain; Indicators Looking Good (13 June 2008) <http://www.digitalmusicnews.com/stories/061208coldplay> at 15 June 2008
[14] Digital Music News, Coldplay Album Starts Leaking; Release Date Mid-June (6 June 2008)<http://www.digitalmusicnews.com/stories/060508coldplay> at 7 June 2008; Digital Music News, Usher Survives; Shifts 433,000 Albums First Week (5 June 2008) <http://www.digitalmusicnews.com/stories/060408usher> at 6 June 2008; Digital Music News, The Usher Leak: Download Estimates Emerge... (26 May 2008) <http://www.digitalmusicnews.com/stories/052608usher> at 4 June 2008
[15] Slyck, Buckcherry Slams BitTorrent Leak (22 July 2008) <http://www.slyck.com/story1718_Buckcherry_Slams_BitTorrent_Leak> at 23 July 2008; TechDirt, Band Leaks Own Tracks To BitTorrent, Pretends To Be Pissed Off (31 July 2008) <http://www.techdirt.com/articles/20080731/1231121854.shtml> at 6 August 2008
[16] TechDirt, Guns N' Roses Loves Online Music, On Its Own Terms (20 November 2008) <http://www.techdirt.com/articles/20081120/0736312898.shtml> at 21 November 2008; TechDirt, Blogger Who Uploaded GNR Album Pleads Guilty, Accepts Deal (11 November 2008) <http://www.techdirt.com/articles/20081110/1939572792.shtml> at 16 November 2008; SiliconValley, Man who posted unreleased Guns N' Roses songs online is charged (1 September 2008) <http://www.siliconvalley.com/news/ci_10358404?nclick_check=1> at 5 September 2008; CNet News, FBI arrests blogger accused of leaking Guns N' Roses tracks (27 August 2008) <http://news.cnet.com/8301-17938_105-10027657-1.html> at 1 September 2008; Digital Music News, Guns N' Roses Leaker Arrested by FBI... (27 August 2008) <http://www.digitalmusicnews.com/stories/082708gnr> at 28 August 2008; TechDirt, Doesn't The FBI Have More Important Things To Do Than Chase Down The Guy Who Leaked The New Guns N' Roses Album? (25 June 2008) <http://www.techdirt.com/articles/20080625/0111221510.shtml> at 26 June 2008
[17] TechDirt, Blogger's Arrest Resulted In Much More Downloading Of GNR Music (10 September 2008) <http://www.techdirt.com/articles/20080907/1650382188.shtml> at 12 September 2008
ZeroPaid: It's a Shake-Down, Extortion, Blight and an Insult
I was published today on the tech news site ZeroPaid. Check out the article here:
ZeroPaid, Harvard Prof on RIAA Tactics: 'It's a Shake-Down, Extortion, Blight and an Insult' (4 December 2008) <http://www.zeropaid.com/news/9872/Harvard+Prof+on+RIAA+Tactics%3A+%27It%E2%80%99s+a+Shake-Down%2C+Extortion%2C+Blight%2C+and+an+Insult%27> at 4 December 2008
ZeroPaid, Harvard Prof on RIAA Tactics: 'It's a Shake-Down, Extortion, Blight and an Insult' (4 December 2008) <http://www.zeropaid.com/news/9872/Harvard+Prof+on+RIAA+Tactics%3A+%27It%E2%80%99s+a+Shake-Down%2C+Extortion%2C+Blight%2C+and+an+Insult%27> at 4 December 2008
Tuesday, December 2, 2008
Stop the Clean Feed
Great news from Get Up - they have more than 55,000 signatures for their Save the Net Campaign. There are also nationwide protests planned for Saturday 13th December 2008.
Melbourne Protest
Date: Saturday 13th of December
Time: 12:00pm - 4:00pm
Location: Outside the State Library, corner of Swanston St and La Trobe St.
Facebook event: http://www.facebook.com/event.php?eid=46838735931
Brisbane Protest:
Date: Saturday 13th of December
Time: 11:00am - 3:00pm
Location: Brisbane Square
Facebook event: http://www.facebook.com/event.php?eid=42526399601
Sydney Protest:
Date: Saturday 13th of December
Location: Town Hall Square, George Street
Time: 11:00am - 3:00pm
Facebook event: http://www.facebook.com/event.php?eid=49916537640
Adelaide Protest:
Date: Saturday 13th of December
Location: Parliament House
Time: 12:00pm - 4:00pm
Facebook event: http://www.facebook.com/event.php?eid=39343300875
Hobart Protest:
Date: Saturday 13th of December
Location: Parliament Lawns
Time: 11:00am - 1:30pm
Facebook event: http://www.facebook.com/event.php?eid=39329861995
Perth Protest:
Date: Saturday 13th of December
Location: Stirling Gardens
Time: 12:00pm - 3:00pm
Facebook event: http://www.facebook.com/event.php?eid=45738419714
You can find out more and volunteer to help at: http://www.stopthecleanfeed.com/
Melbourne Protest
Date: Saturday 13th of December
Time: 12:00pm - 4:00pm
Location: Outside the State Library, corner of Swanston St and La Trobe St.
Facebook event: http://www.facebook.com/event.php?eid=46838735931
Brisbane Protest:
Date: Saturday 13th of December
Time: 11:00am - 3:00pm
Location: Brisbane Square
Facebook event: http://www.facebook.com/event.php?eid=42526399601
Sydney Protest:
Date: Saturday 13th of December
Location: Town Hall Square, George Street
Time: 11:00am - 3:00pm
Facebook event: http://www.facebook.com/event.php?eid=49916537640
Adelaide Protest:
Date: Saturday 13th of December
Location: Parliament House
Time: 12:00pm - 4:00pm
Facebook event: http://www.facebook.com/event.php?eid=39343300875
Hobart Protest:
Date: Saturday 13th of December
Location: Parliament Lawns
Time: 11:00am - 1:30pm
Facebook event: http://www.facebook.com/event.php?eid=39329861995
Perth Protest:
Date: Saturday 13th of December
Location: Stirling Gardens
Time: 12:00pm - 3:00pm
Facebook event: http://www.facebook.com/event.php?eid=45738419714
You can find out more and volunteer to help at: http://www.stopthecleanfeed.com/
Monday, December 1, 2008
Year in Review: iTunes
Two thousand and eight was a good year for Apple’s iTunes store with it surpassing 5 billion downloads in its 5th year of operation.[1] It became ranked as the 2nd most popular music store in the United States next to the physical retailer WalMart.[2]
YouTube began including click to buy links on the bottom of its pages containing EMI content, enabling viewers to directly link with stores such as iTunes and Amazon, with the intention of expanding to other US copyright owners before going global .[3]
While there was some talk of iTunes launching a subscription service nothing to date has eventuated.[4]
The Copyright Royalty Board also determined that mechanical royalty rates of 9.1 cents or 10.5% of tracks sales would remain static for the next five years.[5] iTunes had expressed concern earlier that any increase in this rate would have resulted in the store operating at a loss and being unsustainable.[6] The National Music Publishers Association was seeking a rise from 9 cents to 15 cents per paid download while Apple and others from the DIMA were seeking a reduced rate.[7]
Some artists such as Kid Rock, AC/DC and The Eagles elected not to sell their latest releases through iTunes preferring other stores that enabled them to sell full albums rather than singles.[8] Another artist, Estelle, signed to Warner, experimented with removing her single from iTunes once it had become popular in the hope that more people would purchase the album.[9]
The tendency for the per track download arrangement to destroy the profitability and artistic integrity of artists was of concern. In 2007 US consumers downloaded 844 million tracks from digital music stores compared with only 50 million digital albums.[10]
Others noted the benefits to consumers and the prior history of record labels placing one or two popular tracks on an album and deliberately filling the rest of the space on the album with lesser quality tracks, as a distinct advantage over the album only culture.[11] Some argue however that not putting music in easy to purchase places simply encourages customers to access it through illegal download services.[12]
The lack of prominence on iTunes of independent and smaller selling artists has led to many independent labels and artists establishing their own paid download sites catering to a niche audience and enabling greater self promotion and fan exploration.[13] Furthermore, Apple makes around 30% of every purchase from its store (with the funds being primarily directed toward running costs) and selling independently enables these artists to be more competitive.[14]
In a separate issue China blocked iTunes for a short while with the release of The Art of Peace Foundation’s album Songs for Tibet which included a 15 minute track from the Dalai Lama apparently resulting in the censorship of the site.[15] Later reports indicated that access was restored to iTunes but not to the album itself preventing people from within China from purchasing it.[16] Other reports suggested that access was subsequently restored to the album at a later time.[17]
[1] Digital Music News, The iTunes Store: Five Years, Five Billion Song Downloads (20 June 2008) <http://www.digitalmusicnews.com/stories/061908itunes> at 26 June 2008
[2] Digital Music News, iTunes Becomes Second Largest Music Retailer, Fuzzy Math Applies (27 February 2008) <http://www.digitalmusicnews.com/stories/022608fuzzy> at 28 February 2008
[3] AFP, YouTube links to online stores in money-making move (8 October 2008) <http://afp.google.com/article/ALeqM5jRxMsYH4iZreyrPK_Pr4-8M30RJQ> at 10 October 2008; TechDirt, EMI Sets Up Its Own Online Store As YouTube Tries Selling Music (8 October 2008) <http://www.techdirt.com/articles/20081007/2140232485.shtml> at 10 October 2008; Digital Music News, YouTube Trying eCommerce; iTunes, Amazon On Board (8 October 2008) <http://www.digitalmusicnews.com/stories/100708youtube> at 10 October 2008
[4] ZeroPaid, Apple in Talks with Record Labels for unlimited iTunes (20 March 2008) <http://www.zeropaid.com/news/9338/Report%3A+Apple+in+Talks+with+Record+Labels+for+Unlimited+iTunes> at 22 March 2008
[5] SiliconValley/Associated Press, Copyright board leaves music royalty rate unchanged; Apple had threatened to shut iTunes (2 October 2008) <http://www.siliconvalley.com/news/ci_10620493> at 5 October 2008; SiliconValley/Associated Press, Federal copyright board to set digital music royalties (1 October 2008) <http://www.siliconvalley.com/news/ci_10611112?nclick_check=1> at 5 October 2008; Digital Music News, Mechanicals Staying Steady on Paid Downloads... (3 October 2008) <http://www.digitalmusicnews.com/stories/100208rates> at 5 October 2008; TechDirt, Copyright Royalty Board Keeps Download Rates The Same; iTunes 'Saved' (3 October 2008) <http://www.techdirt.com/articles/20081002/1807062438.shtml> at 5 October 2008
[6] SiliconValley/Associated Press, Copyright board leaves music royalty rate unchanged; Apple had threatened to shut iTunes (2 October 2008) <http://www.siliconvalley.com/news/ci_10620493> at 5 October 2008; SiliconValley/Associated Press, Federal copyright board to set digital music royalties (1 October 2008) <http://www.siliconvalley.com/news/ci_10611112?nclick_check=1> at 5 October 2008; Digital Music News, Mechanicals Staying Steady on Paid Downloads... (3 October 2008) <http://www.digitalmusicnews.com/stories/100208rates> at 5 October 2008; TechDirt, Copyright Royalty Board Keeps Download Rates The Same; iTunes 'Saved' (3 October 2008) <http://www.techdirt.com/articles/20081002/1807062438.shtml> at 5 October 2008
[7] Digital Music News, Oh the Drama: Royalty Decisions Await; iTunes Ultimatum Surfaces (1 October 2008) <http://www.digitalmusicnews.com/stories/093008royalty> at 5 October 2008; The Register, Apple screws songwriters (again) (1 October 2008) <http://www.theregister.co.uk/2008/10/01/apple_itunes_threat/> at 5 October 2008
[8] ArsTechnica, Album-loving artists blame iTunes for changed music tastes (28 August 2008) <http://arstechnica.com/news.ars/post/20080828-album-loving-artists-blame-itunes-for-changed-music-tastes.html> at 1 September 2008; CNet News, AC/DC's iTunes boycott is on Highway to Hell (14 October 2008) <http://news.cnet.com/8301-1023_3-10066360-93.html> at 16 October 2008; Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[9] ArsTechnica, Album-loving artists blame iTunes for changed music tastes (28 August 2008) <http://arstechnica.com/news.ars/post/20080828-album-loving-artists-blame-itunes-for-changed-music-tastes.html> at 1 September 2008; TechDirt, Looks Like That Plan To Remove Songs From iTunes Didn't Work Out So Well (11 September 2008) <http://www.techdirt.com/articles/20080910/2119052228.shtml> at 14 September 2008; Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[10] Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[11] ArsTechnica, Album-loving artists blame iTunes for changed music tastes (28 August 2008) <http://arstechnica.com/news.ars/post/20080828-album-loving-artists-blame-itunes-for-changed-music-tastes.html> at 1 September 2008; CNet News, AC/DC's iTunes boycott is on Highway to Hell (14 October 2008) <http://news.cnet.com/8301-1023_3-10066360-93.html> at 16 October 2008; Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[12] TechDirt, Bands Avoiding iTunes For The Wrong Reasons (28 August 2008) <http://www.techdirt.com/articles/20080827/2214562116.shtml> at 1 September 2008
[13] ArsTechnica, Indie labels bypass iTunes, give digital sales a shot (17 March 2008) <http://arstechnica.com/news.ars/post/20080317-indie-labels-bypass-itunes-give-digital-sales-a-shot.html> at 18 March 2008
[14] Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[15] The Register, iTunes, and Sting, banned from China (22 August 2008) <http://www.theregister.co.uk/2008/08/22/itunes_blocked_china_tibet/> at 28 August 2008; The Register, China pardons iTunes (but not Sting) (26 August 2008) <http://www.theregister.co.uk/2008/08/26/china_pardons_itunes/> at 28 August 2008; Digital Music News, Developing: Apple Investigating Chinese iTunes Store Block (25 August 2008) <http://www.digitalmusicnews.com/stories/082208china> at 28 August 2008; TechDirt, China Blocks iTunes After Olympic Athletes Download Pro-Tibetan Music (21 August 2008) <http://www.techdirt.com/articles/20080821/0312442052.shtml> at 25 August 2008; guardian.co.uk, China blocks iTunes music store (21 August 2008) <http://www.guardian.co.uk/music/2008/aug/21/china.blocks.itunes> at 25 August 2008; Digital Music News, Will the Ban Boost Sales? Tibet Album Pushes Past 10,000 (22 August 2008) <http://www.digitalmusicnews.com/stories/082108tibet> at 25 August 2008
[16] The Register, China pardons iTunes (but not Sting) (26 August 2008) <http://www.theregister.co.uk/2008/08/26/china_pardons_itunes/> at 28 August 2008; TechDirt, China Realizes It Doesn't Need To Block All Of iTunes (26 August 2008) <http://www.techdirt.com/articles/20080825/2219562089.shtml> at 28 August 2008
[17] Digital Music News, iTunes Reinstated In China... Tibet Album Now Included (27 August 2008) <http://www.digitalmusicnews.com/stories/082608ituneschina> at 28 August 2008
YouTube began including click to buy links on the bottom of its pages containing EMI content, enabling viewers to directly link with stores such as iTunes and Amazon, with the intention of expanding to other US copyright owners before going global .[3]
While there was some talk of iTunes launching a subscription service nothing to date has eventuated.[4]
The Copyright Royalty Board also determined that mechanical royalty rates of 9.1 cents or 10.5% of tracks sales would remain static for the next five years.[5] iTunes had expressed concern earlier that any increase in this rate would have resulted in the store operating at a loss and being unsustainable.[6] The National Music Publishers Association was seeking a rise from 9 cents to 15 cents per paid download while Apple and others from the DIMA were seeking a reduced rate.[7]
Some artists such as Kid Rock, AC/DC and The Eagles elected not to sell their latest releases through iTunes preferring other stores that enabled them to sell full albums rather than singles.[8] Another artist, Estelle, signed to Warner, experimented with removing her single from iTunes once it had become popular in the hope that more people would purchase the album.[9]
The tendency for the per track download arrangement to destroy the profitability and artistic integrity of artists was of concern. In 2007 US consumers downloaded 844 million tracks from digital music stores compared with only 50 million digital albums.[10]
Others noted the benefits to consumers and the prior history of record labels placing one or two popular tracks on an album and deliberately filling the rest of the space on the album with lesser quality tracks, as a distinct advantage over the album only culture.[11] Some argue however that not putting music in easy to purchase places simply encourages customers to access it through illegal download services.[12]
The lack of prominence on iTunes of independent and smaller selling artists has led to many independent labels and artists establishing their own paid download sites catering to a niche audience and enabling greater self promotion and fan exploration.[13] Furthermore, Apple makes around 30% of every purchase from its store (with the funds being primarily directed toward running costs) and selling independently enables these artists to be more competitive.[14]
In a separate issue China blocked iTunes for a short while with the release of The Art of Peace Foundation’s album Songs for Tibet which included a 15 minute track from the Dalai Lama apparently resulting in the censorship of the site.[15] Later reports indicated that access was restored to iTunes but not to the album itself preventing people from within China from purchasing it.[16] Other reports suggested that access was subsequently restored to the album at a later time.[17]
[1] Digital Music News, The iTunes Store: Five Years, Five Billion Song Downloads (20 June 2008) <http://www.digitalmusicnews.com/stories/061908itunes> at 26 June 2008
[2] Digital Music News, iTunes Becomes Second Largest Music Retailer, Fuzzy Math Applies (27 February 2008) <http://www.digitalmusicnews.com/stories/022608fuzzy> at 28 February 2008
[3] AFP, YouTube links to online stores in money-making move (8 October 2008) <http://afp.google.com/article/ALeqM5jRxMsYH4iZreyrPK_Pr4-8M30RJQ> at 10 October 2008; TechDirt, EMI Sets Up Its Own Online Store As YouTube Tries Selling Music (8 October 2008) <http://www.techdirt.com/articles/20081007/2140232485.shtml> at 10 October 2008; Digital Music News, YouTube Trying eCommerce; iTunes, Amazon On Board (8 October 2008) <http://www.digitalmusicnews.com/stories/100708youtube> at 10 October 2008
[4] ZeroPaid, Apple in Talks with Record Labels for unlimited iTunes (20 March 2008) <http://www.zeropaid.com/news/9338/Report%3A+Apple+in+Talks+with+Record+Labels+for+Unlimited+iTunes> at 22 March 2008
[5] SiliconValley/Associated Press, Copyright board leaves music royalty rate unchanged; Apple had threatened to shut iTunes (2 October 2008) <http://www.siliconvalley.com/news/ci_10620493> at 5 October 2008; SiliconValley/Associated Press, Federal copyright board to set digital music royalties (1 October 2008) <http://www.siliconvalley.com/news/ci_10611112?nclick_check=1> at 5 October 2008; Digital Music News, Mechanicals Staying Steady on Paid Downloads... (3 October 2008) <http://www.digitalmusicnews.com/stories/100208rates> at 5 October 2008; TechDirt, Copyright Royalty Board Keeps Download Rates The Same; iTunes 'Saved' (3 October 2008) <http://www.techdirt.com/articles/20081002/1807062438.shtml> at 5 October 2008
[6] SiliconValley/Associated Press, Copyright board leaves music royalty rate unchanged; Apple had threatened to shut iTunes (2 October 2008) <http://www.siliconvalley.com/news/ci_10620493> at 5 October 2008; SiliconValley/Associated Press, Federal copyright board to set digital music royalties (1 October 2008) <http://www.siliconvalley.com/news/ci_10611112?nclick_check=1> at 5 October 2008; Digital Music News, Mechanicals Staying Steady on Paid Downloads... (3 October 2008) <http://www.digitalmusicnews.com/stories/100208rates> at 5 October 2008; TechDirt, Copyright Royalty Board Keeps Download Rates The Same; iTunes 'Saved' (3 October 2008) <http://www.techdirt.com/articles/20081002/1807062438.shtml> at 5 October 2008
[7] Digital Music News, Oh the Drama: Royalty Decisions Await; iTunes Ultimatum Surfaces (1 October 2008) <http://www.digitalmusicnews.com/stories/093008royalty> at 5 October 2008; The Register, Apple screws songwriters (again) (1 October 2008) <http://www.theregister.co.uk/2008/10/01/apple_itunes_threat/> at 5 October 2008
[8] ArsTechnica, Album-loving artists blame iTunes for changed music tastes (28 August 2008) <http://arstechnica.com/news.ars/post/20080828-album-loving-artists-blame-itunes-for-changed-music-tastes.html> at 1 September 2008; CNet News, AC/DC's iTunes boycott is on Highway to Hell (14 October 2008) <http://news.cnet.com/8301-1023_3-10066360-93.html> at 16 October 2008; Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[9] ArsTechnica, Album-loving artists blame iTunes for changed music tastes (28 August 2008) <http://arstechnica.com/news.ars/post/20080828-album-loving-artists-blame-itunes-for-changed-music-tastes.html> at 1 September 2008; TechDirt, Looks Like That Plan To Remove Songs From iTunes Didn't Work Out So Well (11 September 2008) <http://www.techdirt.com/articles/20080910/2119052228.shtml> at 14 September 2008; Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[10] Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[11] ArsTechnica, Album-loving artists blame iTunes for changed music tastes (28 August 2008) <http://arstechnica.com/news.ars/post/20080828-album-loving-artists-blame-itunes-for-changed-music-tastes.html> at 1 September 2008; CNet News, AC/DC's iTunes boycott is on Highway to Hell (14 October 2008) <http://news.cnet.com/8301-1023_3-10066360-93.html> at 16 October 2008; Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[12] TechDirt, Bands Avoiding iTunes For The Wrong Reasons (28 August 2008) <http://www.techdirt.com/articles/20080827/2214562116.shtml> at 1 September 2008
[13] ArsTechnica, Indie labels bypass iTunes, give digital sales a shot (17 March 2008) <http://arstechnica.com/news.ars/post/20080317-indie-labels-bypass-itunes-give-digital-sales-a-shot.html> at 18 March 2008
[14] Wall Street Journal, More Artists Steer Clear of iTunes (28 August 2008) <http://online.wsj.com/article/SB121987440206377643.html> at 1 September 2008
[15] The Register, iTunes, and Sting, banned from China (22 August 2008) <http://www.theregister.co.uk/2008/08/22/itunes_blocked_china_tibet/> at 28 August 2008; The Register, China pardons iTunes (but not Sting) (26 August 2008) <http://www.theregister.co.uk/2008/08/26/china_pardons_itunes/> at 28 August 2008; Digital Music News, Developing: Apple Investigating Chinese iTunes Store Block (25 August 2008) <http://www.digitalmusicnews.com/stories/082208china> at 28 August 2008; TechDirt, China Blocks iTunes After Olympic Athletes Download Pro-Tibetan Music (21 August 2008) <http://www.techdirt.com/articles/20080821/0312442052.shtml> at 25 August 2008; guardian.co.uk, China blocks iTunes music store (21 August 2008) <http://www.guardian.co.uk/music/2008/aug/21/china.blocks.itunes> at 25 August 2008; Digital Music News, Will the Ban Boost Sales? Tibet Album Pushes Past 10,000 (22 August 2008) <http://www.digitalmusicnews.com/stories/082108tibet> at 25 August 2008
[16] The Register, China pardons iTunes (but not Sting) (26 August 2008) <http://www.theregister.co.uk/2008/08/26/china_pardons_itunes/> at 28 August 2008; TechDirt, China Realizes It Doesn't Need To Block All Of iTunes (26 August 2008) <http://www.techdirt.com/articles/20080825/2219562089.shtml> at 28 August 2008
[17] Digital Music News, iTunes Reinstated In China... Tibet Album Now Included (27 August 2008) <http://www.digitalmusicnews.com/stories/082608ituneschina> at 28 August 2008
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