Home Digital Music News: Insider Blogs Clarification re "Accounting Ugliness"
Log in


Forgot your password?
New user?
 
Register to access archived stories or to receive the Daily Snapshot email.
sponsors

Become a Sponsor
learn more




















BLOG BENEFACTOR
Ticket broker Vividseats.com can provide you with the best concert tickets and theater tickets.
Use Redemption Code DMN and get $10 off all tickets, including Cirque Du Soleil Mystere Tickets , Wicked Tickets , Xanadu Tickets, Jersey Boys Tickets, and many more.
 

Clarification re "Accounting Ugliness"

A point of clarification for the DMN article on YouTube artist accounting.  The way things work in the world of distribution licensing is that the record company, digital aggregator or music publisher (or society) relies on the distributor to give them adequate sales reporting data on a track by track basis.  Along with that sales report comes a single check, and the recipient of that check has to break it down and render accountings to their artists, distributed labels or artists, and writers (or publishers).

The distributor needs to give reasonably detailed sales reports so that the record company, digital aggregator or music publisher (or society) can render those statements.  Otherwise the check that is received is never distributed or could be improperly distributed.

When faced with a distributor in a country that doesn't share basic ideas about private property, that is difficult to sue, or where the distributor is trying to avoid payment for a host of reasons, the typical practice is to get the biggest advance you can, and then hope for the best when it comes time to account.  Call it "crook insurance."  This happens most frequently in third world countries, but we are now seeing it in that third world country that exists in the middle of a first world economy--aka the Internet.

So if a distributor is trying to at least pretend they are running a legitimate business, it is not enough to point fingers at record companies, digital aggregators and music publishers who are not provided the proper information with which to render statements.  Whatever accounting problems the labels may have, it is a little hard to believe that ALL of the accounts--big and small--are playing hide the ball at the same time and just with the YouTube money.  That line of argumentation only works with the 13 and under crowd.

So put that in your SOX and smoke it.

The URL to Trackback this entry is:
http://digitalmusicnews.com/blog/accountinguglyness/tbping
 
Comments
 
 
Bloggers
Ray Beckerman, Vandenberg & Feliu LLP
Steve Gordon, Steve Gordon Law
Rags Gupta, Brightcove
Chris Castle, Christian L. Castle, Attorneys
« July 2008 »
                                                              
Sun Mon Tues Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    
 

Powered by Plone CMS, the Open Source Content Management System

This site conforms to the following standards: