Moses Supposes - December 2007
Music Business News that Actually Helps You
THANK YOU SUBSCRIBER
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Season's greeting from the Moses Avalon Company. It's been our best year yet thanks to subscribers like you.
--Our advocacy efforts are yielding fruit and will someday make the music business a better, safer place to pursue a career in-- thanks to your support.
--We have taken in a record number of new clients this year-- thanks to you're trust.
--We have helped a record number of unsigned artist reach their career goals-– thanks to your insightfulness.
--The Confessions Workshop has been asked to be a permanent part of Loyola Marymount University's event calendar-– thanks to you're enrolment and great testimonials.
--This mailing list has expanded to record numbers this year; from 13,112 to approximately 14,000 – thanks to your referrals.
-- And we did all this without taking out a single add or asking for a single donation.
We are glad to be appreciated and hope that we have given you the kind of information that will help you even more in 2008.
God bless.
Moses Avalon
FEDs TO HELP THE MUSIC BIZ MAKE $100,000,000 NEXT YEAR
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New Bill is So Artist Friendly, It's Scary
It's the end of the year. I won my bet with my lawyer: the music business did not implode. (see "Do I Owe My Lawyer Lunch": http://www.mosesavalon.com/mosessupposes/aug-sep07.html)
CD sales were down but not so much that it won't balance out from digital downloads, ring tones sales are through the roof, and if that isn't enough, now the Federal Government is entertaining legislation that will effectively put over $100,000,000 NEW dollars into the music biz economy EACH YEAR!!!
So, the next person who tells me the music biz is faltering is going to get black roses from yours truly. Shut up already and deal with the FACT that you're a pessimistic drama queen.
Here's the skinny: As you read this Congress's is reviewing the new Performance Rights Act.
From the A2IM website: "Under existing law, satellite and Internet radio already pay royalties to recording artists and rights holders when their music is broadcast. However, the new Act, introduced into both houses of Congress, adds terrestrial radio to the list of paying broadcasters."
That means that regular "analog" radio will start paying record companies (and thus artists) for playing songs. Up till now in the US only songwriters received performance royalties from radio and TV air play. Authors of the sound recording (meaning artist, producers and labels) got goose egg.
But the party is over for broadcasters who have gotten away with this gross injustice for over half a century.
What has made this imbalance seriously cruel is the fact that US artists, when played on European radio, still received no royalties even though Europe and Canada pay their local artists for the same type of play. This dynamic has influenced many US artists to sign with foreign divisions of major labels and thus robed the US economy of indigenous talent.
WHO WILL GET THE RICHEST?
SoundExhange ("SX") naturally. A former branch of the RIAA and still connected to them in many serious intellectual ways, SX will be collecting all of these new royalties and taking an (unregulated) percentage for collection and distribution of the new money. Some economists have estimated the amount to be in hundreds of millions per year. This will mean SX may quickly become every bit as powerful as ASCAP and BMI, both of whom also operate in the same "non-profit-ish" manor as SX.
So, lets not kid ourselves. The big brother agenda is still in play. Sure, if this Bill passes (with all its proposed amendments) record companies will be able to get paid (instead of paying radio stations payola) but does this mean artists will get to see this new money? Maybe. That will still be a fight waged between labels and artist's managers.
The good news is that now artists and their representation will have a far bigger pool of cash to fight for, which means they may be able to achieve something that, in the past, was available only to the biggest stars--- top attorneys and auditors to work on contingency. This new legislation could afford them better representation and thus force labels to be more cautious about short-changing their talent.
But the battle is far from over. This Bill needs support. The letter below, which I received from John Simson Executive Director of Sound Exchange explains it well.
<<<Moses:
As I'm sure you've heard, yesterday was a very important day for U.S. recording artists and labels. Performance rights legislation was introduced in both the House and the Senate. It is really important that music industry professionals reach out to the co-sponsors and thank them for taking this stand. We know how powerful the broadcasters are and the Congressional representatives who stood up yesterday need to hear from their constituents. Please tell everyone you know to get engaged, to send an e-mail or make a phone call, especially if they have a relationship with these representatives.
On the House side, the sponsors are Berman (CA), Issa (CA), Conyers (MI), Blackburn (TN), Harman (CA) and Shadegg (AZ). On the Senate side, its Leahy (VT), Feinstein (CA), Corker (TN) and Hatch (UT).
Please call if you have any questions about the legislation. Thanks.
John L. Simson
Executive Director, SoundExchange>>>>
Get off your ass and do something for your community. Write a letter Y'awl.
Mo Out
ANOTHER CD BABY SITUATION? (SIGH)
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Y'know, I'm really loath to write anything more about this company. I think they are self-serving and not nearly as artist friendly as they pretend to be. They participate in no grass roots operations that I know of to further artists' rights. They do not promote for their clients and worst yet, I get more reports than I can handle about their intimidation tactics when people try to "opt out" of their digital distribution contract, which I rate poorly to begin with (see my comparison chart: http://www.mosesavalon.com/digidist.html)
So, I don't really have the time to check this new theory out. But I hope that some of you do and report back to me.
This showed up on my Good Guys Data Base this week. It alleges that CD Baby may have some kind of arrangement with MySpace that allows a series of "backdoor links" to aggregate information about the buying habits of visitors. If this turns out to be correct your fans might be giving information to CD Baby and not even know it by virtue of the fact that they bought your music through MySpace
Normally, I would drag such conspiracy fantasies into the Recycle Bin, but I know that CD Baby and Snocap (the official eCommerce platform for MySpace) have or had a relationship. Also, while indie artists can elect not to do business with CD Baby and still have many options, MySpace has become virtually indispensable. So this might be wroth looking into.
The link on my Good Guys Data Base is called "how did this happen ?" and can be found here:
http://www.mosesavalon.com/forum/topic.php?tid=31
Please let me know what you find. All responses will be kept confidential.
Meantime, I hope each of you has a great holiday.
See you next year,
Moses Avalon
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