Feeds

Big labels are f*cked, and DRM is dead - Peter Jenner

Clash, Pink Floyd manager lifts the lid

Beginner's guide to SSL certificates

Then you've got people like Barney [Wragg] at Universal, their new technology man, and they've got these High Priests of DRM in there.

One thing you strongly hint at is that the distinction between royalties for a physical thing, and performances, is out of date and needs to be rethought.

The difference between a download and a stream now is now purely just a question of what you want to call it. Both are streams, both can be downloaded and it's whether you want to call it a download and charge for a download.

The record companies have managed to establish, and I think incorrectly and it should be challenged, that a download is a replacement for a sale. Here's what they're saying - it's a mechanical, so it's the same as selling a record. Then the logic goes on: a download is a certain technical process that puts it onto your machine. So anything which does that is a download. Therefore, anything delivered in that way is a sale: so we'll pay you as a sale.

Which then means you've got to track everything. It's not discriminating - it's not looking at what people are using the music for. It's creating an artificial distinction so they can distinguish the payment of royalties. So you get paid 15 per cent of the dealer price net of some things - whether they call it "packaging deductions", or "new technology", or "Mid-Price", or some combination of those.

They have all sorts of ways of slicing down the royalty rate. And the net result is that if you're getting only five per cent of the dealer price actually paid to you - as the person who made the record - you're doing well. The writers, because they've got the publishers fighting for them, get more. They went to tribunal recently and got eight per cent of the dealer price. So if you wrote your own song you might get 11 per cent of the dealer price, and that's top money. If you allow for the Paul McCartneys, maybe 15 per cent. But that's tops for a big label.

Now, if you're an independent, you get in the region of 35 per cent of the dealer price, because they go 50/50. And that's what gives the game away.

And all your net is a payment to an aggregator - maybe 15 per cent, and paying the distributor, and paying the publisher. So instead of five per cent of dealer price you're going to get maybe 20 per cent of dealer price. It's a huge difference!

If you say it's a performance, however, it's a neighbouring right, it might be argued that it goes through PPL, in which case you get 50 per cent with many less deductions. So a performance split between members of the band, sessions musicians - a complicated formula but it goes to the musicians.

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.