It's Not Exploitation If You Chose To Take Part

from the repeat-after-me dept

Well, the buzz of the weekend seems to be around a New York Times op-ed by musician Billy Bragg upset about the sale of Bebo to AOL earlier this month. Bragg's complaint is an old one that we've heard before: Because musicians chose to put their music on Bebo and that helped attract users, don't they deserve some of the $850 million that Bebo got from AOL. Not surprisingly, Nick Carr, who has been pushing this obviously false notion that "user-generated content" is exploitation, comes to Bragg's defense with his usual technique: sound smart, make some interesting points, and then wrap it up with a conclusion that is in absolutely no way supported by the facts.

Let's break this down. The first complaint is that somehow Bebo was "using" this music for "free." This is false. There was a fair trade in an open marketplace that made this happen. Bebo offered musicians a chance to promote themselves (for free) to its community. Musicians accepted this offer, and in exchange, provided their music for free. No one was forced into it. No one was compelled to do it. If either party felt the other was unfair they could choose not to engage in the trade -- and they could also vocally complain. In fact, Bragg did just that when he felt MySpace's terms were unfair, and they changed them. So by choosing to accept Bebo's terms, clearly they were perfectly acceptable. It was a fair trade.

Bragg goes on to assert: "The musicians who posted their work on are no different from investors in a start-up enterprise. Their investment is the content provided for free while the site has no liquid assets. Now that the business has reaped huge benefits, surely they deserve a dividend." Actually, they're very different from investors. Investors made a very different trade. They traded money for equity. Again, it was the fair and open market that allowed that. If Bragg had wanted to trade music for equity, he should have discussed it before... not after. You can be sure that any investors in Bebo didn't ask to change the terms of the deal after the buyout went through.

Complaining after the fact about what happened is like selling a bunch of wood to a builder for a few thousand dollars, and then complaining when he turns that into a million dollar house. Was the wood seller exploited? No. He made the fair trade, and the builder was then free to do what he wanted.

Nick Carr's response to all of this is especially wrong. He writes: "When challenged in this way, the plantation owners counter that they are doing musicians a favor by providing them with a place to promote their work." That is incorrect in so many ways it would take another whole post to get through them all. But let's take the simple point: no one is saying they are doing musicians "a favor." They are saying that there's a fair trade. You give music, we give promotion. No favors at all.

Carr and Bragg go on to use radio as an example, noting that it pays royalties, so why shouldn't social networking sites. This is incorrect for a variety of reasons. First, in the US at least, radios do not pay musicians royalties. This was a decision made by the government that since musicians benefit from airplay, no royalties are needed for the musicians (other royalties are paid for composers and publishers). However, much more to the point was that for most of the history of popular music, those royalties have been meaningless -- as record labels went through all sorts of contortions to have the money go in the other direction. What's sometimes called "payola" has gone on for years, with the record labels effectively bribing radio stations to get music on the air -- recognizing that the promotional value greatly outweighed the royalties coming in.

In other words, a free market will let the benefits to both sides balance out. If payment needs to even up one side, then the market will determine that. But, many musicians made a fair trade decision to take up the offer that Bebo made. It's their own fault if they feel they got the short end of the stick, but they clearly were happy to go along with the deal originally. Buyer's remorse and sour grapes are no excuse. If anything, this sounds quite similar to Doug Morris' ridiculous belief that no one else can make money.

To understand this most simply, it goes back to the psychological explanation we discussed earlier this year, where relevancies matter. People dislike seeing someone else made much better off, even if they are better off themselves. These musicians felt they were better off by using Bebo, but they're now upset that Bebo's founders are relatively better off than they are at the end of the deal. It's a weird world when someone would prefer to be worse off, rather than seeing someone else be even better off. In the meantime, if you'd like to read an ongoing debate between Billy Bragg, myself, Tim Lee and Joe Weisenthal, check out the post on Joe's blog where we all discuss this in the comments.

Filed Under: billy bragg, copyright, music, nicholas carr, royalties, social networks
Companies: bebo

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  1. icon
    Mike (profile), 24 Mar 2008 @ 12:51pm


    Nope. I do the same thing, check this blog occasionally, and have reached the same conclusion as you have regarding Mike's stance. Just the fact that musicians have been degraded to "content providers" says it all.

    Heh. When I discuss musicians people get mad and say "what about songwriters" or "what about authors" so I say "content providers" and now you get mad that I'm not saying musicians.

    Please. There's plenty to debate over. Calling people "content providers" isn't degrading.

    I initially thought that the internet would be a boon to musicians and bring down the evil major labels, who I always hated.

    Um. Have you noticed that more people than ever before in history are making music? Have you noticed that more people than ever before in history are making money thanks to their music. Have you noticed that more people than ever before in history are making money without having a major label contract?

    The old-style music business may have screwed artists over, but at least there was a pretense of paying them.

    Again, more people are making money. There's very much a pretense of getting paid -- it's just not for the music directly, but for the additional products that the music makes more valuable.

    I have made it clear from the beginning that the models we discuss allow the artists to make MORE money, by embracing free to make OTHER stuff more valuable. It seems that some people get to the "free" part and stop thinking.

    BMW gives its commercials out for free, and it helps sell more cars. You don't hear people whining about that.

    The new version of "the Man" doesn't even have to bother with lying about royalty statements. You'll just never get paid!

    Again, more people than ever before in history are making money from their music. How can you say you'll never get paid?

    Hell, you're LUCKY to even get your stuff given away for free, because after all it gives you EXPOSURE! If you don't like it, well, there's a sucker someplace else who'll post his stuff for free, so who cares. Youtube or any other similar site PAY for content? SHARE the proceeds of the ad revenue with content providers? Nah, that's the OLD way of thinking!

    Considering people used to have to PAY to get their songs on the radio or PAY to host and stream it from their own sites, I'd think you'd be thrilled that others were offering you a chance to take that cost away from you.

    The new "Man" is even worse for artists than the scheming, sleazy, coked-up, old school record executives ever were.

    Again, I repeat: more musicians than ever before...

    But why bother with facts when you want to shut your mind down?

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