As with most companies, their main objective is to make money. But it isn't always fairly divided up and a lot of the rights don't belong to who they should. Earlier this year, in September the EU council voted to extend the copyright on song records from 50 years to a long 70 years. Although there is a clause which allows for the artists to renegotiate their contracts with the record labels, but not for 50 years from release and the artist will only be able to regain the rights to their recordings if it is stored by the company and has not been made available to the public, leaving the producers to be very much in control. The artist that were for the move, were similar in popularity to Cliff Richard who want to continue to earn from their creations rather than seeing a sudden drop in earnings towards the end of their lifetime. The extension has been in debate for 5 years when it was first turned down by Government who backed Gowers Report who said, “it would negatively impact upon consumers and industry.” A lot of controversy arose from critics when the extension was approved, executive director, Jim Killock, stated “it puts money into the back pockets of big labels and is unlikely to benefit smaller artist”. This is proven by the average amount of royalties paid is very low, especially for smaller artist. However Geoff Taylor, head of the BPI added to this by saying, “it ensures that UK record label labels can continue to reinvest income from sales of early recordings in supporting new British talent.” With this new law in consideration, who is it really benefiting? Are the big labels claiming all the money possible, or are the artist getting the money they deserve?
This is the breakdown earnings for an averagely known artist:
An artist sells 1 million records at £15 each
Which equals, a lot of money.
However, it's far more complex.
Firstly there is an automatic 25% deduction for packaging.
Each album then makes £11.25
Then on the basis that the Artist is massively popular
They have a 10% royalty rate.
They still sell 1 million copies
which now makes just over £1 million.
However, 10% of these copies will have been freebies
So they're only selling 900,000 copies.
Let's throw in those recoupable costs.
Recording costs about £300,000 (100%)
Promotional costs about £200,000 (100%)
Tour costs also about £200,000 (50%)
Music Videos cost the most at £400,000 (50%)
Altogether, £800,000 off of the total leaves the artist
with roughly about £200,000.
An artist sells 1 million records at £15 each
Which equals, a lot of money.
However, it's far more complex.
Firstly there is an automatic 25% deduction for packaging.
Each album then makes £11.25
Then on the basis that the Artist is massively popular
They have a 10% royalty rate.
They still sell 1 million copies
which now makes just over £1 million.
However, 10% of these copies will have been freebies
So they're only selling 900,000 copies.
Let's throw in those recoupable costs.
Recording costs about £300,000 (100%)
Promotional costs about £200,000 (100%)
Tour costs also about £200,000 (50%)
Music Videos cost the most at £400,000 (50%)
Altogether, £800,000 off of the total leaves the artist
with roughly about £200,000.
Until all of the recoupable fees are paid off back to the record labels, the Artist will be earning nothing on royalties. Therefore the new copyright right isn't going to benefit smaller artist, by having even less of an opportunity to fully own their recordings.
The introduction of new software and their integration with all major websites on the internet make the internet the easiest way to distribute and promote Artists and their music. However, it’s not always done legally; file sharing websites and it’s users are the main culprit of illegally downloading music. Bittorrenting was brought to the internet in 2006, since then it has gained millions of users all over the world ‘seeding and leeching’ their files between each other. Torrents are different from the usual communities of file sharing, like Kazaa. It differs because of it’s unique, peer to peer sharing format. When a file is being downloaded that person is ‘leeching’ then once they have something to share as well, this is known as ‘seeding’ which keeps the balance equal and no one person gains profit over somebody else. It has become incredibly popular because of it’s strict guidelines were there are no falsely named files containing adware or spy ware, which are closely monitored by the frequent users. The consumers are getting what they want and giving something back, which is completely legal as there are a lot of companies who use bit torrent to distribute large files to their users. The technology itself is legal, it’s what the users come to do with this kind of technology that is illegal. As soon as people start sharing music they do not own the rights to, it’s illegal and that is when the music companies and the artists begin to lose out. Is it really ethical for an Artist to work so hard and long on an album that millions of people then share between them for no cost at all? For this exact reason, in 2001, Napster was forced to shut down by the US federal judge until it could remove all the copyrighted music that was being streamed, downloaded and shared by millions of users for no cost and no restrictions. During the duration of it's shut down, companies had began to develop websites for artist were users can stream their music straight from the site, causing a huge drop in users when the Napster returned with heavy restrictions. In June 2002, Napster returned properly as a legitimate, royalty paying service, but the company still remained unimpressed at the efforts to have them shut down.
The introduction of new software and their integration with all major websites on the internet make the internet the easiest way to distribute and promote Artists and their music. However, it’s not always done legally; file sharing websites and it’s users are the main culprit of illegally downloading music. Bittorrenting was brought to the internet in 2006, since then it has gained millions of users all over the world ‘seeding and leeching’ their files between each other. Torrents are different from the usual communities of file sharing, like Kazaa. It differs because of it’s unique, peer to peer sharing format. When a file is being downloaded that person is ‘leeching’ then once they have something to share as well, this is known as ‘seeding’ which keeps the balance equal and no one person gains profit over somebody else. It has become incredibly popular because of it’s strict guidelines were there are no falsely named files containing adware or spy ware, which are closely monitored by the frequent users. The consumers are getting what they want and giving something back, which is completely legal as there are a lot of companies who use bit torrent to distribute large files to their users. The technology itself is legal, it’s what the users come to do with this kind of technology that is illegal. As soon as people start sharing music they do not own the rights to, it’s illegal and that is when the music companies and the artists begin to lose out. Is it really ethical for an Artist to work so hard and long on an album that millions of people then share between them for no cost at all? For this exact reason, in 2001, Napster was forced to shut down by the US federal judge until it could remove all the copyrighted music that was being streamed, downloaded and shared by millions of users for no cost and no restrictions. During the duration of it's shut down, companies had began to develop websites for artist were users can stream their music straight from the site, causing a huge drop in users when the Napster returned with heavy restrictions. In June 2002, Napster returned properly as a legitimate, royalty paying service, but the company still remained unimpressed at the efforts to have them shut down.
On the other hand, if we take a look at some major companies that are completely legal, there is a lot of good that comes from this technology. Firstly, there is Spotify which is a perfect service for the teenagers today who maybe find it hard to come by money for CDs and other kinds of medium. This service allows for it's users to stream, buy and store music on which is then available offline on mobiles and other laptops. There are three different types of Spotify, the free version is what most of Spotify's users have, this allows them to stream 10 hours of music per month, within wi-fi connection supported by visual or radio-styled adverts. The upgrade to the paid for version means unlimited usage, advert free and with higher birate streaming, which is a must for a lot of their users. However, because of the free streaming that is allowed to all users, albeit that some are limited, it does mean that there are a few legendary artist who refuse to have their music appear on Spotify, artist include Metallica, Led Zeppelin, AC/DC, Pink Floyd and The Beatles. Spotify are an incredibly profitable company, not just from subscriptions and advertising, but from music downloading. The pricing for songs on Spotify are somewhat unusual compared to download prices on places such as Apple and Amazon. A single download from Spotify will cost you £1.15. So how can Spotify possibly compete with other distributors? Unlike Apple, Spotify are all about the music and know that their listeners won't be buying just one song, therefore there is money to be saved when buying in bulk from Spotify. Buying 15 tracks in one go already makes them a saving when each track is just £6. When a bundle of 100 tracks are bought, they are just 50p each. iTunes are biggest distributor for digital music and all other types of digital media including TV shows, films, games and e-books. This convergence of all media is what makes iTunes the top store on the internet with its capabilities of being accessible from anywhere on your mobile phone. Unlike Spotify feature to stream music, iTunes allow for a 30 second preview and no more, with means artist like Metallica and Pink Floyd are more comfortable to make arrangement with iTunes to sell their recordings through iTunes at much more costly prices, a single track coming to 99p and an album at £7.99 each.
-Stuff about big labels and Sony and stuff-
-Stuff about case study stuff and Indie Charts-
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Teenagers nowadays have a very scope on how to use the internet, and how easy it is to get famous all over the world, in particular, Rebecca Flint. A schoolgirl aged just 14, from the Isle of Mann managed to get herself known all over Japan when she posted her dance to the song, "Danjo". She had been living and breathing anime, manga and the Japanese culture for 2 years before deciding to post several videos of herself dancing under the name Beckii Cruel, in total secret. It wasn't until 2010 when Japan picked up her 'Danjo dance' and broadcast the video over nation-wide site, Niko Niko Douga. When she was offered work in Japan that would change her life, she told her parents about the videos she had been posting. Now Rebecca Flint goes to Japan on average 8 times a year to perform, sing, dance and model. Youtube is the perfect site for upcoming artist to promote their work for free and get known world wide, just like Rebecca. Now that technology has been taken to a new level were we can access youtube on our mobile phones from almost anywhere and share everything we like with whoever we like, the internet is your oyster. Like Rebecca, world famous Justin Bieber started out in the exact same way, posting videos of what he does best, on Youtube for the world to see and one day get noticed. This has lead to him being another teen success story and an idol for all upcoming artist. He shows just how easy it is to get noticed, and in a technological world, were all the studio software you need is just a click away and in some cases free as well, money wise, the only way is up. However, out of all the artist that are posting on Youtube, the ones with the biggest fanbases are the unsigned, independent music makers which Youtube want to support further. They began by starting up a scheme entitled, Musicians wanted, where unsigned artist will sign up and those who are accepted will make profits from the advertising around their videos which will hopefully give these artist the edge to make their music go further once they are more finacially supported.
-Stuff about advantages and disadvantages-
-Stuff about big labels and Sony and stuff-
-Stuff about case study stuff and Indie Charts-
-More stuff about stuff-
Teenagers nowadays have a very scope on how to use the internet, and how easy it is to get famous all over the world, in particular, Rebecca Flint. A schoolgirl aged just 14, from the Isle of Mann managed to get herself known all over Japan when she posted her dance to the song, "Danjo". She had been living and breathing anime, manga and the Japanese culture for 2 years before deciding to post several videos of herself dancing under the name Beckii Cruel, in total secret. It wasn't until 2010 when Japan picked up her 'Danjo dance' and broadcast the video over nation-wide site, Niko Niko Douga. When she was offered work in Japan that would change her life, she told her parents about the videos she had been posting. Now Rebecca Flint goes to Japan on average 8 times a year to perform, sing, dance and model. Youtube is the perfect site for upcoming artist to promote their work for free and get known world wide, just like Rebecca. Now that technology has been taken to a new level were we can access youtube on our mobile phones from almost anywhere and share everything we like with whoever we like, the internet is your oyster. Like Rebecca, world famous Justin Bieber started out in the exact same way, posting videos of what he does best, on Youtube for the world to see and one day get noticed. This has lead to him being another teen success story and an idol for all upcoming artist. He shows just how easy it is to get noticed, and in a technological world, were all the studio software you need is just a click away and in some cases free as well, money wise, the only way is up. However, out of all the artist that are posting on Youtube, the ones with the biggest fanbases are the unsigned, independent music makers which Youtube want to support further. They began by starting up a scheme entitled, Musicians wanted, where unsigned artist will sign up and those who are accepted will make profits from the advertising around their videos which will hopefully give these artist the edge to make their music go further once they are more finacially supported.
-Stuff about advantages and disadvantages-