Archive for March 22nd, 2008
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2008
Jelly on CurrentPosted by: Nate Westheimer in Heat, Kicks, Sneakers, affiliate marketing, internet, new media, nextNY, online advertising, web 2.0
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03
2008
These Crazy Musicians Still Think They Should Get Paid For Recorded MusicPosted by: Michael Arrington in Google, Heat, Kicks, Sneakers, internet, new media, online advertising, web 2.0
British musician Billy Bragg argues in the New York Times today that some portion of Bebo’s $850 million sale price should go to the musicians who uploaded their music to the site. Note that Bragg neatly sidesteps the fact that music was uploaded to the site by artists (or their labels) themselves, with full knowledge that they would not receive payments of any kind (except free marketing, of course, and access to Bebo’s tens of millions of music loving users). His argument is based on the notion that Bebo’s success was based on the availability of streaming music on the site: “The musicians who posted their work on Bebo.com are no different from investors in a start-up enterprise…Now that the business has reaped huge benefits, surely they deserve a dividend.” Bragg also tries to take direct credit for Bebo’s success:
Bragg does attempt to argue his case, primarily by (1) saying that social networks are as much to blame for declining music sales as the people who are downloading songs in violation of copyrights, and (2) saying that arguments that social networks are doing musicians a favor by marketing their music are “disingenuous.” Both arguments have holes in them so large you could drive a BitTorrent stream through them. Social networks have absolutely nothing to do with the decline in music sales. The fact that recorded music can be reproduced at a zero marginal cost is why music sales are declining. You can hate that or love that, but it’s simple economics that drives it. And in fact the argument that social networks actually provide free marketing to artists is not disingenuous. In fact, it’s quite correct. Bragg notes that radio stations pay royalties for playing songs, even though they also obviously provide free marketing for artists. His argument isn’t quite factually correct - In the U.S. royalties are paid by radio stations to song writers but not artists (it comes to about $450 million per year). In most of the rest of the world, though, artists are paid royalties. But a much more interesting analysis of the radio industry is the very strong desire for labels and musicians to pay them to play songs. Payola is now illegal, but the practice almost certainly continues. As recently as 2005, former New York State Attorney General Eliot Spitzer prosecuted payola-related crimes in his jurisdiction. Recorded music is nothing but marketing material to drive awareness of an artist. Websites that bring that music to listeners are doing artists a favor. In fact, they’re doing them a favor that they should (and will) be paid for. Young artists and songwriters in particular benefit from these services - Until a few years ago they had almost no way to break into the mainstream without getting a label to promote them. Now those walls are being torn down, and Bragg has the audacity to complain about it. I think the main reason Bragg wrote this article is jealousy over the massive success of someone he once met - Bebo cofounder Michael Birch. The paragraphs quoted above where he takes credit for their business model reveal his angst in that regard. Bragg had absolutely nothing to do with Bebo’s $850 million payday. And everything else he wrote in that article is dead wrong, too. Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.
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03
2008
Bridging Desktop And Web Applications - A Look At Mozilla PrismPosted by: Michael Arrington in Google, Heat, Kicks, Sneakers, internet, new media, online advertising, web 2.0New platforms like Adobe Air and Mozilla Prism are evolving that combine the benefits of Internet flow with the flexibility and power of desktop applications. They are part browser, part desktop app and are extremely efficient for certain types of applications. Flash, Silverlight and Ajax get most web applications over the hump in terms of usability and are the technologies behind the fast transition of desktop applications to the web. But it’s not clear that they’ll ever kill off all desktop applications entirely. The bridge between them may very well be Air and/or Prism. Read Matthew’s blog, Just Browsing, here.
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