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Are we still talking about piracy in 2011? Well, maybe it makes perfect sense, but it looks like incoming Universal Music Group head of digital Rob Wells is totally and completely paranoid about
In fact, an extensive interview - conducted by PacketVideo's Jim Rondinelli - focused heavily on the matter. The usual stats were trotted out, with the usual lack of specificity. So, think "9 out of 10 downloads are pirated," and "moving from 98% [piracy] to 95% is a big improvement," etc., and you get the point.
But how does this translate into actual anti-piracy strategy? It doesn't look like UMG is headed back to the days of individual lawsuits - leave that to smaller Hollywood studios (for now). But Wells offered little shift to an anti-piracy strategy that features a huge legal hammer, and a hopeful crusade to shift behaviors. Actually, Grooveshark had a few executives bumping around at this event, but apparently tiptoeing around Wells.
So what about new ideas? Well, there weren't many. Wells flatly said "no" when asked about collective, ISP-level licensing, simply because it limits the amount of potential revenue. Separately, Wells showcased 'victories' (or in his words, 'green shoots') in markets like Sweden and South Korea, though there was little indication that Spotify was primed for US signature.
Still, Wells wanted to shift the tone towards digital partners, and tighten review periods and due diligence windows. That included a promise to implement a 12-week end-to-end review process, not a multi-year drag. And hey, he might just call you back. "UMG is globally open for business," Wells told Rondinelli, a bruised-and-frustrated veteran from Slacker. "Whatever your experience was in the past, you're going to have a very different experience this year."
Comments Closed
Kevin King Friday, February 11, 2011
this guy is an actor for an onion faux news piece, right?
@_TimHolland Friday, February 11, 2011
Tim Holland
Paranoia? Don't agree. Music piracy is simply the biggest issue we r never going 2b able 2 solve
James Friday, February 11, 2011
Absolutely. He's not paranoid; he's right.
MisterSoftee Friday, February 11, 2011
James c'mon! This is just more fiction not a strategy. why NOT license ISP's? It's not 1995 anymore.
James Friday, February 11, 2011
How on earth is piracy a fiction? I only wish it was!
A hell of a lot of the world's most creative people, from both the tech and the music sides, have been trying for over a decade to work out new strategies, new business models. All have failed. Anyone who thinks the failure is down to music industry intransigence is just kidding themselves.
MisterSoftee Friday, February 11, 2011
James allow me to disagree!
The fiction is that somehow just bashing away Limewire nad Groovesharks of the world will somehow work. And guys like Wells keep resisting tge ISP collective licensing - believing they can get their old market back.
It's a great, cooked up story but not my preferred weekend read!
James Friday, February 11, 2011
As for licensing ISPs, there was an excellent article recently on musictechpolicy.com about why that wouldn't be a good idea: http://bit.ly/hm6l4n
@brandtmorain Friday, February 11, 2011
Brandt Morain
New Report: 25% of ALL INTERNET TRAFFIC is used for piracy! No wonder the U.S. economy stinks
V Friday, February 11, 2011
Collective Licensing could work. It's the strongest that idea that has come out in the last few years. Yes, it may limit the potential revenue, and the oversight of such operation will be daunting at first. But, dismissing the idea because of limits to revenue is stupid. These guys need to stop thinking of ways to get the industry back to the way it was. Those days are over. Collective Licensing, if anything, will bring forth a continuous revenue stream. Take it from there…
Maxwellian Friday, February 11, 2011
V --- whole heartedly agreed, but I don't think the ISPs in the US/UK or other places will do a deal anymore. They were open to deals before. but thats changed --- you know the RIAA sabre rattling and endless threatening didn't help. MW
JacksonL Friday, February 11, 2011
Rob: forget about every LAME digital startup coming into your office. Make 'em WAIT if you call them back ever.
IN stead take real action: your in LA, talk to EVERY studio head and join with them right now to get this horse back in the stable. It's their problem now too remmeber that.
Glinda Friday, February 11, 2011
Rob Wells is spectacularly unimpressive. He has no track record of innovation, and his constant whining about piracy is a poor substitute for actually having AN IDEA.
If he is representative of the quality of executives Lucian wants at UMG now, I think that Sony and Doug Morris will be laughing their asses off!
WILL Friday, February 11, 2011
Is collective licensing a music like water tax, bundled into every ISP monthly fee?
JanonymousR Friday, February 11, 2011
Screw that... I don't know what is wrong with some of you people. You've got the guy from UMG himself saying ISP fees are not enough money, and you don't believe him? Plus why should the ISP make any money from music downloads using the networks? And if someone doesn't use the Internet for music why should they have to pay the bloody bill?
And what's with this garbage about US economy sucking because 25% of the Internet traffic is piracy? Sure, companies with intellectual property interest are hurt by it. Let's not play dumb though. The economy is slumping because of failed mortgage backed securities and inability to compete with cheap Asian manufacturing.
Note: not attacking Will. He was just asking for clarity.
presnikoff Friday, February 11, 2011
@WILL
There are different variations and applications of this idea, but in this context, yes this is exactly what it refers to. ISPs would pay a monthly amount, a percentage of access fees, and that money would be divided amongst the various rightsholders. The details could vary, though - for example, the plan might call for the most frequently-accessed or popular content to get a higher percentage of the pool of money.
The concern has always been that this puts an unnecessary cap on the earnings potential. And taking it a step further, there may be a fear among labels that it also represents a white flag against piracy - after all, you can't exactly sue P2Ps and BitTorrent trackers if you are also making money off of their usage.
It also represents a lot of compromise and coordination with other labels, publishers, ISPs, etc., not exactly the DNA of labels!
/pr
Matt Thompson Friday, February 11, 2011
Good points Paul. This could also create even greater confusion around what types of licenses are needed to do what. You know as soon as people would hear that an ISP is licensed they would also assume that means they can do whatever they want with the music and post it. People would be forgoing synch licenses (although most do so now anyway) and then everyone can make and post their own music videos or whatever. People could probably even find a way to monetize their own productions to make themselves money and assume that nothing needs to go back to the content owners.
I agree that this would be a losing situation for the labels. Thanks again Paul.
WILL Friday, February 11, 2011
Cheers for explaining that Paul.
Visitor Friday, February 11, 2011
The biggest lie in the article is:
"Whatever your experience was in the past, you're going to have a very different experience this year."
Same old same old. They're not going to change.
V Friday, February 11, 2011
I get what Rob and others are saying. On the surface, Collective Licensing looks like a train wreck, for all the reasons that have been listed in the past. However, I can't help but ponder that there is something in the idea. Why let fear wave
a potential new businesses model that at least shows a continuous revenue
stream to start off with.
In the long run, this just wouldn’t be for music, but also
books, newspapers, TV shows etc. Also,
this will help get the percentage down on piracy. Along side getting content
for free, another main reason people pirate is access. If content companies had
websites for users to get the content fast, easy, legally, and at an unlimited
rate, I think a good amount of people would be open to the tax.
On the other hand, this will kill such services as Itunes, and Netflixs!
@musicregistry Friday, February 11, 2011
Stephen Trumbull
Make sure to read the comments!
The Insider Friday, February 11, 2011
Which has been more of a fail - The Industry's bout with Piracy or the so-called war on drugs?
Rachel Friday, February 11, 2011
It's not paranoia when your fears are justified, as are the labels' fear of revenue-killing piracy. Why don't you check a dictionary before you write your next "article."
trevor Friday, February 11, 2011
funny I see it different as a unjustified level of fear - that they spend so much $ and time obsessing and waging war on this. but yeah it has killed revenues for sure.
jefrey Monday, February 21, 2011
thanks..
econ Friday, February 11, 2011
Inj the CD age this was the same industry that wondered why Cd sales hit a wall... right after a price increase. After bitching and moaning for several years, the begrudgingly lowred prices.. right in time for downloading's infancy.
Then what do they do with downloads? Overprice them, then raise the price again. Then they overprice the licensing for the legit businesses that wantt oactually work with them.
The only thing artists need from labels anymore is marketing. And most artists are better off paying a contractor to do it for them than rely on the label rolling the service in with their recording contract. For smaller artists booking agents do a better marketing job than the labels.
It's a dead business model. Or at least a model in a permanently vegetative state. DO NOT RESUSCITATE
@FeaturedArtists Monday, February 14, 2011
The FAC
Or not...
@neilkwilson Monday, February 14, 2011
neilkwilson
With numbers like 98% music of music pirated, UMG has right to be paranoid!
@transmitGLOBAL Tuesday, February 15, 2011
transmitNOW Events
Interesting viewpoint on Rob Wells' interview...
@indabamusic Wednesday, February 16, 2011
indabamusic
What do you think is the best way to fight music piracy?
@sLange_Windsor Wednesday, February 16, 2011
Shane Lange
Great comments, worth reading!
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