Royalty Agreements Holding Up Necessary Change In The Music Industry
from the need-a-clean-break dept
Why? Well, with regards to music, the trend is clear that the music world itself is increasingly moving towards free music. That's just basic economics at work. Yet, by tacking on a defined royalty on each download or streamed song, it makes it much harder for anyone tied into that royalty system to actually embrace the opportunities that free music provides. And if you recognize that those opportunities are likely to be even larger than the existing market, then by agreeing to these royalty payments, the songwriters are actually limiting their own market potential. In the end, all it does is artificially inflate prices, leaving more efficient and innovative solutions to route around the existing songwriters, rather than rewarding them. Just like everyone else, songwriters will need to learn to change the way they're compensated. Trying to inflate the old, obsolete system won't help things. It will only make it that much more difficult for the entire industry to change.
One other aside on all of this. In the comments, more than a few times, we've had discussions where people have suggested that the models we've discussed wouldn't work for songwriters, specifically, claiming that the old system is fine, but any new system would never work -- ignoring the many ways it could work (using a straightforward pay-for-hire setup, for example). However, it's interesting to see that relying on the supposedly "successful" old model is starting to come under stress from everyone else in the industry. It highlights, once again, that when we talk about these models, it's silly to compare the "old way" and any "new way." It's more important to recognize that the old way just isn't sustainable. You need to compare the new models to what the old models are trending towards.