Digc102 - Assessment 1
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DIGC102 - Assessment 1 James Hallihan – University of Wollongong - 21/08/09
Revenue Loss vs. Revenue Gain: Losing Money in the Australian and International Music Industry Online, there is a lot of information and debate in regards to revenue gain and loss for music artists and record labels. This information was obtained via the use of a variety of search engines, news websites, and databases. The major players involved in the issue of ‘music revenue’ are varied. On one side is the major record labels, collection societies and agencies, and on the other are the general public consumer, and businesses such as restaurants, gyms, clubs, and funeral parlours that wish to play music in their workplaces. And, of course, there’s the artists themselves, somewhere in between, torn between survival as a human being, and fame and popularity as an artist. The general belief / understanding of the major record companies, collection societies/agencies, government legislators, and a majority of artists is that music should not, where possible, be free to consume or be used to the financial advantage of a business or individual, and “any business that wants to play copyright protected music or music videos has to first obtain the requisite licenses.” (PPCA 2009), in accordance with the Australian Copyright Act 1968. These facts and opinions were found on the websites of the record labels, collection agencies/societies, government run legal information sites, and those of the artists themselves. In Australia, the PPCA teamed with APRA and AMCOS ‘police’ the rights of artists and record companies to retain revenue for the consumption and use of their music. The roles of each of these organisations is well clarified by the Community Broadcasting Association of Australia (CBAA) on their website. In the current economic climate, those who could be considered ‘pro-revenue’ have been considerably active in ensuring record companies and artists receive all money that is due to them. This has involved an increase in investigative and monitoring activity of businesses and individual music consumption by the main collection societies / agencies, who have, themselves, remained considerably silent on the issue in the media. Providing mainly ‘official statements’ on their respective websites, the majority of discussion has come from the business owners themselves in the form of complaints published in the media, and along with consumers on blogs and forums. A controversial fact that is discussed on a number of blogs is that the “PPCA was
founded in 1969 by the major record companies” (PPCA 2009), and is generally seen as being ‘run’ by the major record companies to this day, as expressed on the community blog site Digg (2009). There has also be a lot of discussion via news articles in regards to recent moves by the PPCA to change the ways tariff costs and license fees are calculated. There are claims in the media that these changes would “increase the cost of background music by up to 2000 times” (Houston, C, The Age 2009) While many groups are rallying to retain as much money as possible in the international music industry, there are a number of artists such as Radiohead, Nine Inch Nails / Trent Reznor, Saul Williams, and Janis Ian, who could be considered ‘on the side of the consumer’. For example, Trent Reznor (aka Nine Inch Nails), on discovering the price that Universal Music Group (UMG) in Australia were charging for his Nine Inch Nails album ‘Year Zero’, posted a message on his Nine Inch Nails blog slamming the record company for their perceived efforts to “screw the consumer” (Reznor, T 2007). Whilst several years earlier in 2002, at the dawn of Peer to Peer (P2P) online file sharing, folk singer songwriter Janis Ian spoke out against the rising pressure record companies and the Recording Association Industry of America were putting on ‘copyright infringers’ and P2P users in the USA by writing an article for Performing Songwriter Magazine (and later a follow up article on her website). Being a overly social issue, there are not a wide range of scholarly discussions available, though the music industry as we know it will be shaped by current events, and further legislation and discussion on the legal implementations will no doubt grow in time. Bibliography Phonographic Performance Company of Australia Ltd (PPCA) 2009 Licensing: New Tariffs Effective as of 1 July 2009, accessed 18/08/09 http://www.ppca.com.au/tariffs_july2009.htm Community Broadcasting Association of Australia (CBAA) 2009 Copyright Organisations, accessed 21/08/09 http://www.cbaa.org.au/content.php/263.html Phonographic Performance Company of Australia Ltd (PPCA) 2009 Artists FAQ: Who runs PPCA?, accessed 21/08/09 http://www.ppca.com.au/artist_faq.htm#Who_runs_PPCA_ Digg User: raustin 2009 PPCA: Businesses Must Pay More for Background Music, accessed 21/08/09 http://digg.com/business_finance/PPCA_Businesses_Must_Pay_More_for_Back
ground_Music Houston, C 2009 I'll have a little Elvis with that, thanks, The Age, accessed 21/08/09 http://www.theage.com.au/national/ill-have-a-little-elvis-with-that-thanks20090613-c6sy.html Reznor, T 2007 Updates From Trent, accessed 21/08/09 http://web.archive.org/web/20070517041353rn_1/nin.com/tr/ Ian, J 2002 The Internet Debacle – An Alternative View, accessed 21/08/09 http://www.janisian.com/article-internet_debacle.html Phonographic Music Company of Australia (PPCA) 2009 Do you play music in your business?, accessed 08/08/09, http://www.ppca.com.au/documents/PPCAemailgeneralflyer.pdf Australian Legal Information Institute 2009 Copyright Act 1968, accessed 21/08/09 http://www.austlii.edu.au/au/legis/cth/consol_act/ca1968133/ Taffel, J 2009 Music off the menu as licensing row heats up, accessed 08/08/09 http://www.smh.com.au/news/entertainment/musicfees/2009/08/04/1249152588554.html Masnick, M. 2009 Playing Music In A Nightclub Just Got Ridiculously More Expensive In Australia, accessed 08/08/09, http://www.techdirt.com/articles/20090615/0329305236.shtml Stace, L. 2007 ‘Unite and Fight’, Australasian Leisure Management vol.61, pp22, accessed 08/08/09, http://ey9ff7jb6l.search.serialssolutions.com.ezproxy.uow.edu.au/?sid=INFORMI T:APAFT&genre=article&issn=14461374&title=Australasian%20Leisure%20Management&rtf.jtitle=Australasian%20L eisure%20Management&issue=61&date=2007&atitle=Unite%20and%20fight%20 %5BPlanned%20changes%20to%20PPCA%20licensing%20fees%20represent %20a%20threat%20to%20the%20future%20of%20group%20exercise%5D&spa ge=22&artnum=200705387 Laird, C. 2009 Restaurateurs baulk at more music fees, accessed 08/08/09, http://www.abc.net.au/worldtoday/content/2009/s2645616.htm
Arts Law Centre of Australia Online 2005 Legal Information: Copyright, accessed 08/08/09, http://www.artslaw.com.au/LegalInformation/Copyright/default.asp Standing Committee on Legal and Constitutional Affairs, Parliament of Australia House of Representatives 1998 Don’t stop the music! A report of the inquiry into copyright, music and small business, accessed 08/08/09, http://www.aph.gov.au/house/committee/laca/Inquiryincopy.htm Anderson, N 2008 Reznor makes $750,000 even when the music is free, ars technica http://arstechnica.com/old/content/2008/03/reznor-makes-750000-even-whenthe-music-is-free.ars Sams, C 2009 Full stream ahead for music at $10 a month, Sydney Morning Herald, accessed 21/08/09 http://www.smh.com.au/news/entertainment/music/full-stream-ahead-for-musicat-10-a-month/2009/08/15/1249756477962.html Swan, D 2009 New Oz music scheme: unlimited music no longer pipe dream, accessed 21/08/09 http://www.itwire.com/content/view/27018/532/ Music Council of Australia, 2009 MCA Journal of Music Research Online, accessed21/08/09 http://journal.mca.org.au/ojs/index.php?journal=mca2&page=index Agence France-Presse 2009 Music downloads to eclipse CDs by 2010 in the United States, News.com.au, accessed 21/08/09 http://www.news.com.au/technology/story/0,28348,25950903-5014239,00.html User: Libby, InTheMix.com.au 2006 PPCA lobbying for big $$ from party promoters, accessed 18/08/09 http://www.inthemix.com.au/forum/archive/index.php/t-168726.html Drinnan, J 2009 Gyms fight to keep music playing, accessed 18/08/09 http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10591438&pnu m=0 Ryan, R 2009 Date for music submissions is August 20, accessed 18/08/09 http://www.hospitalitymagazine.com.au/article/Date-for-music-submissions-isAugust-20/494648.aspx NZ Herald Blog 2009 Should you have to pay a license fee to play music in an office or a shop?, accessed 18/08/09
http://blogs.nzherald.co.nz/blog/your-views/2009/8/15/should-you-have-paylicence-fee-play-music-office-or-shop/?c_id=1501154&objectid=10590963 Drinnan, J 2009 Investigator tunes in to make music-players pay, accessed 18/08/09 http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10590943 Gettler, L 2007 Killing the music, accessed 18/08/09 http://blogs.watoday.com.au/executivestyle/managementline/2007/07/11/killingthemusic.html Stynes, T 2009 Its Losses Growing, Warner Music Works To Diversify Revenue, Expand in Downloads, access 18/08/09 http://proquest.umi.com.ezproxy.uow.edu.au/pqdlink?Ver=1&Exp=08-172014&FMT=7&DID=1820786231&RQT=309&cfc=1
Revenue Loss vs. Revenue Gain: Losing Money in the Australian and International Music Industry Online, there is a lot of information and debate in regards to revenue gain and loss for music artists and record labels. This information was obtained via the use of a variety of search engines, news websites, and databases. The major players involved in the issue of ‘music revenue’ are varied. On one side is the major record labels, collection societies and agencies, and on the other are the general public consumer, and businesses such as restaurants, gyms, clubs, and funeral parlours that wish to play music in their workplaces. And, of course, there’s the artists themselves, somewhere in between, torn between survival as a human being, and fame and popularity as an artist. The general belief / understanding of the major record companies, collection societies/agencies, government legislators, and a majority of artists is that music should not, where possible, be free to consume or be used to the financial advantage of a business or individual, and “any business that wants to play copyright protected music or music videos has to first obtain the requisite licenses.” (PPCA 2009), in accordance with the Australian Copyright Act 1968. These facts and opinions were found on the websites of the record labels, collection agencies/societies, government run legal information sites, and those of the artists themselves. In Australia, the PPCA teamed with APRA and AMCOS ‘police’ the rights of artists and record companies to retain revenue for the consumption and use of their music. The roles of each of these organisations is well clarified by the Community Broadcasting Association of Australia (CBAA) on their website. In the current economic climate, those who could be considered ‘pro-revenue’ have been considerably active in ensuring record companies and artists receive all money that is due to them. This has involved an increase in investigative and monitoring activity of businesses and individual music consumption by the main collection societies / agencies, who have, themselves, remained considerably silent on the issue in the media. Providing mainly ‘official statements’ on their respective websites, the majority of discussion has come from the business owners themselves in the form of complaints published in the media, and along with consumers on blogs and forums. A controversial fact that is discussed on a number of blogs is that the “PPCA was
founded in 1969 by the major record companies” (PPCA 2009), and is generally seen as being ‘run’ by the major record companies to this day, as expressed on the community blog site Digg (2009). There has also be a lot of discussion via news articles in regards to recent moves by the PPCA to change the ways tariff costs and license fees are calculated. There are claims in the media that these changes would “increase the cost of background music by up to 2000 times” (Houston, C, The Age 2009) While many groups are rallying to retain as much money as possible in the international music industry, there are a number of artists such as Radiohead, Nine Inch Nails / Trent Reznor, Saul Williams, and Janis Ian, who could be considered ‘on the side of the consumer’. For example, Trent Reznor (aka Nine Inch Nails), on discovering the price that Universal Music Group (UMG) in Australia were charging for his Nine Inch Nails album ‘Year Zero’, posted a message on his Nine Inch Nails blog slamming the record company for their perceived efforts to “screw the consumer” (Reznor, T 2007). Whilst several years earlier in 2002, at the dawn of Peer to Peer (P2P) online file sharing, folk singer songwriter Janis Ian spoke out against the rising pressure record companies and the Recording Association Industry of America were putting on ‘copyright infringers’ and P2P users in the USA by writing an article for Performing Songwriter Magazine (and later a follow up article on her website). Being a overly social issue, there are not a wide range of scholarly discussions available, though the music industry as we know it will be shaped by current events, and further legislation and discussion on the legal implementations will no doubt grow in time. Bibliography Phonographic Performance Company of Australia Ltd (PPCA) 2009 Licensing: New Tariffs Effective as of 1 July 2009, accessed 18/08/09 http://www.ppca.com.au/tariffs_july2009.htm Community Broadcasting Association of Australia (CBAA) 2009 Copyright Organisations, accessed 21/08/09 http://www.cbaa.org.au/content.php/263.html Phonographic Performance Company of Australia Ltd (PPCA) 2009 Artists FAQ: Who runs PPCA?, accessed 21/08/09 http://www.ppca.com.au/artist_faq.htm#Who_runs_PPCA_ Digg User: raustin 2009 PPCA: Businesses Must Pay More for Background Music, accessed 21/08/09 http://digg.com/business_finance/PPCA_Businesses_Must_Pay_More_for_Back
ground_Music Houston, C 2009 I'll have a little Elvis with that, thanks, The Age, accessed 21/08/09 http://www.theage.com.au/national/ill-have-a-little-elvis-with-that-thanks20090613-c6sy.html Reznor, T 2007 Updates From Trent, accessed 21/08/09 http://web.archive.org/web/20070517041353rn_1/nin.com/tr/ Ian, J 2002 The Internet Debacle – An Alternative View, accessed 21/08/09 http://www.janisian.com/article-internet_debacle.html Phonographic Music Company of Australia (PPCA) 2009 Do you play music in your business?, accessed 08/08/09, http://www.ppca.com.au/documents/PPCAemailgeneralflyer.pdf Australian Legal Information Institute 2009 Copyright Act 1968, accessed 21/08/09 http://www.austlii.edu.au/au/legis/cth/consol_act/ca1968133/ Taffel, J 2009 Music off the menu as licensing row heats up, accessed 08/08/09 http://www.smh.com.au/news/entertainment/musicfees/2009/08/04/1249152588554.html Masnick, M. 2009 Playing Music In A Nightclub Just Got Ridiculously More Expensive In Australia, accessed 08/08/09, http://www.techdirt.com/articles/20090615/0329305236.shtml Stace, L. 2007 ‘Unite and Fight’, Australasian Leisure Management vol.61, pp22, accessed 08/08/09, http://ey9ff7jb6l.search.serialssolutions.com.ezproxy.uow.edu.au/?sid=INFORMI T:APAFT&genre=article&issn=14461374&title=Australasian%20Leisure%20Management&rtf.jtitle=Australasian%20L eisure%20Management&issue=61&date=2007&atitle=Unite%20and%20fight%20 %5BPlanned%20changes%20to%20PPCA%20licensing%20fees%20represent %20a%20threat%20to%20the%20future%20of%20group%20exercise%5D&spa ge=22&artnum=200705387 Laird, C. 2009 Restaurateurs baulk at more music fees, accessed 08/08/09, http://www.abc.net.au/worldtoday/content/2009/s2645616.htm
Arts Law Centre of Australia Online 2005 Legal Information: Copyright, accessed 08/08/09, http://www.artslaw.com.au/LegalInformation/Copyright/default.asp Standing Committee on Legal and Constitutional Affairs, Parliament of Australia House of Representatives 1998 Don’t stop the music! A report of the inquiry into copyright, music and small business, accessed 08/08/09, http://www.aph.gov.au/house/committee/laca/Inquiryincopy.htm Anderson, N 2008 Reznor makes $750,000 even when the music is free, ars technica http://arstechnica.com/old/content/2008/03/reznor-makes-750000-even-whenthe-music-is-free.ars Sams, C 2009 Full stream ahead for music at $10 a month, Sydney Morning Herald, accessed 21/08/09 http://www.smh.com.au/news/entertainment/music/full-stream-ahead-for-musicat-10-a-month/2009/08/15/1249756477962.html Swan, D 2009 New Oz music scheme: unlimited music no longer pipe dream, accessed 21/08/09 http://www.itwire.com/content/view/27018/532/ Music Council of Australia, 2009 MCA Journal of Music Research Online, accessed21/08/09 http://journal.mca.org.au/ojs/index.php?journal=mca2&page=index Agence France-Presse 2009 Music downloads to eclipse CDs by 2010 in the United States, News.com.au, accessed 21/08/09 http://www.news.com.au/technology/story/0,28348,25950903-5014239,00.html User: Libby, InTheMix.com.au 2006 PPCA lobbying for big $$ from party promoters, accessed 18/08/09 http://www.inthemix.com.au/forum/archive/index.php/t-168726.html Drinnan, J 2009 Gyms fight to keep music playing, accessed 18/08/09 http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10591438&pnu m=0 Ryan, R 2009 Date for music submissions is August 20, accessed 18/08/09 http://www.hospitalitymagazine.com.au/article/Date-for-music-submissions-isAugust-20/494648.aspx NZ Herald Blog 2009 Should you have to pay a license fee to play music in an office or a shop?, accessed 18/08/09
http://blogs.nzherald.co.nz/blog/your-views/2009/8/15/should-you-have-paylicence-fee-play-music-office-or-shop/?c_id=1501154&objectid=10590963 Drinnan, J 2009 Investigator tunes in to make music-players pay, accessed 18/08/09 http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10590943 Gettler, L 2007 Killing the music, accessed 18/08/09 http://blogs.watoday.com.au/executivestyle/managementline/2007/07/11/killingthemusic.html Stynes, T 2009 Its Losses Growing, Warner Music Works To Diversify Revenue, Expand in Downloads, access 18/08/09 http://proquest.umi.com.ezproxy.uow.edu.au/pqdlink?Ver=1&Exp=08-172014&FMT=7&DID=1820786231&RQT=309&cfc=1
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