Dutch Music Collection Society Loses Artist Royalties In The Stock Market

from the good-job,-guys dept

The various music collection societies keep insisting that they're just the important middlemen helping make sure artists get the royalties they're due. Except, for some reason, they keep getting caught not actually giving that money to artists, but hanging on to it themselves. Billboard reports that the Dutch collection society, Buma/Stemra, is happily telling people that revenue rose by 2% last year -- though, oddly, the Billboard report leaves out one rather interesting detail. Reader Marcel de Jong notes that Buma/Stemra invested a bunch of the money it collected for artists into the stock market and then lost a chunk of it, so it's paying artists less money than it collected for them. What's unclear is if Buma/Stemra would have paid out more if it had made money... and also why it's gambling on the stock market with money it supposedly collected for artists.

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  1. icon
    Tgeigs (profile), 29 May 2009 @ 9:47am

    Re: Time-Value of Money

    "Now, it seems to me that B/S cannot deliver the income as soon as it comes in. They probably have a payment schedule."

    I, for one, would be EXTREMELY interested to get the details on this. For instance, do they reconcile every month (like most businesses do, on a net-30 schedule)? Every quarter? Every year? Also, what is their methodology for seeking out artists to pay them? As I noted elsewhere, SoundExchange couldn't seem to find Uncle Kracker for payment. Uncle Kracker.....

    "However, between the moment they receive the money and the moment they distribute it, it would be somewhat silly to stick it in a checking account at 0.04% wouldn't it?"

    ....Why? The yield on a checking/savings account isn't particularly good, but on the other hand it CAN'T FUCKING GO DOWN, YOU TWAT! Ahem, sorry. Again, this is NOT they're money, by their own admission. What possible justification is there for using SOMEONE ELSE'S money in a way that could potentiall devalue it?

    "It's not gambling, it's just logical."

    Ok, seriously, what country are you from? It CAN'T be America. The stock market is a gamble, end of story. It can be a stupid gamble, a complete gamble, an educated gamble, or even a reasonable gamble, but it is ALWAYS a gamble.

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