The following is a response from the Consumer Electronics Association (CEA) to an earlier article on Digital Music News, "Technology Is Cooler Than Content, And It's Costing Us Billions..." It comes from Senior Vice President, Government and Regulatory Affairs Michael Petricone.
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This is in response to your article of March 7, in which you suggest that the tech industry benefits disproportionately from the digital revolution because "technology is cooler than content."
Digital technology is merely a tool. It does not guarantee success. The rewards go to those creative and brave enough
During the digital age, tech companies have thrived by offering brilliant new products that consumers want and crave. The last decade has brought us smart phones, HDTV, and tablet computers among numerous other inventions. The frenetic pace of innovation hasn't slowed: over 20,000 new products were introduced at January's International CES alone.
Similarly, artists embraced digital technologies that allow them to cheaply create and distribute their work, and communicate directly with fans. As a result more people are spending more money on music and music-related products than ever before. Indeed, according to the Nielsen Company's figures, 2009 overall music purchases - sales of albums, singles, digital tracks and music videos - reached an all-time high of 1.5 billion.
Now, traditional record labels have finally realized that success lies in innovation, not litigation. They are relaxing their licensing terms and allow a wider range of music distribution technologies to enter the marketplace.
New companies Rdio, SoundCloud and RootMusic are rolling out exciting services. Pandora is well-established and moving toward an IPO. Hopefully, the labels will soon give American listeners access to Spotify, a music service has been wildly popular in Europe.
For years, record labels viewed their job as maintaining scarcity. Now, they finally realize their future depends upon promoting access. The labels finally appear committed to creating a vibrant, extensive, post-CD music ecosystem. If they are successful, then the big record labels will also count themselves winners in the digital revolution.
Michael Petricone
Senior Vice President, Government and Regulatory Affairs
Consumer Electronics Association
Comments Closed
lifer Friday, March 18, 2011
Why so much concern about the welfare of the "big record labels?" How about the digital age providing a new model for cutting the middle man cum gatekeeper out of the equation between artist and consumer. How about the artist retaining all rights throughout the known and unkown universe, in perpetuity, in all mediums whether currently available or not yet invented? How about having marketing and distribution services contracted as "work for hire" or for percentages of net income after expenses?
The digital age is about getting rid of pipeline congesting, revenue extracting, middlemen. Music production and dissemination is no exception. Let the hating begin...(if you identify your vested interest in the old model)
TDTMD Monday, March 21, 2011
If people are spending more on music and music related products, why are bands still finding it difficult to make a living (the major draw headliners will do well)? Music related products-that would be the things this guy represents-headphones, earphones, playes, recorders, and so on but that is not an indication the music industry is doing well. The real answer is artists have seen declining revenue streams simply because the thinking is now entrenched-YOU DON'T HAVE TO PAY FOR MUSIC OR MOVIES WHEN YOU CAN GET THEM FOR FREE ON THE INTERNET!.
I don't disagree that majors could be removed as long as artists have the savvy to retain their rights and can market themselves effectively without being beholden to their medieval masters. Still all is not well and given the comments by the Cake member, who is in the industry and not a happy shiny glossy blog writer who represents the interests of those who produce and market the products that allow consumers to not have to pay for music I would take his word over this guys.
Just look at how quickly hardware manufacturers react if they feel someone is stealing their proprietary technology in order to avoid having to pay rights for the use of that technology. They fight to back up their legitimate claim to the technology they developed but they don't feel the same rules applie to intellectual or creative copyright. Since more people steal more music and buy more consumer electronics to do it, does not mean the music industry is healthy. It means it is being hobbled.
Yves Villeneuve Monday, March 21, 2011
The new consumer-demand model everyone is talking about is piracy. An illegal practice in most countries. Piracy is theft.
Just because it is easy to steal does not make theft legal, it only makes theft (bad behavior, sense of self-entitlement) popular.
Notice how CES avoids mentioning Apple iTunes, which is at least 100 times more popular than Spotify, even in Europe.
www.myspace.com/yvesvilleneuve
@Iconoclastmm Sunday, March 20, 2011
IconoclastMultimedia
Great article
@jtiem107 Sunday, March 20, 2011
Joel Tiemeyer
Interesting article. What do you all think?
musicfan- musicnews2011.com Monday, March 21, 2011
This is a great article. This blog is really cool! Thanks!
@LocomotionUK Monday, March 21, 2011
Tommas Arnby
Great response from CEA to the usual industry kvetch...
blastjacket Monday, March 21, 2011
Guns are merely a tool too but we seem to want to regulate them for are concerns.
Yves Villeneuve Monday, March 21, 2011
Let's be real, iTunes is way more popular, practical and trustworthy than Spotify, even in Europe. I have recently updated my status at Myspace as follows:
"Spotify is neither an authorized retailer of Yves Villeneuve music nor are they authorized to use related album artwork and tracking list to promote Spotify. Avoiding legal action at this time but may come at a some point in the future."
Unfortunately, CD Baby is playing along with Spotify.
One of the reasons I am not pursuing legal action at this time is to remain as underground as possible.
www.myspace.com/yvesvilleneuve
MalcolmG Monday, March 21, 2011
By looking at the convention floor, it seems the only thing easier to start than a band is a technology company, and just like music, it's very easy to knock off what's successful. Look for the old guard to go DIY.
@MrHagan Monday, March 21, 2011
Mr. Hagan
Good read
Seth Keller Monday, March 21, 2011
I might agree with this dude if it wasn't for his ridiculous high school class photo head shot. Makes you want to punch him in the face. Where's Ben Weasel?
kca2306 Monday, March 21, 2011
I completely agree with Mr. Petricone's position "stop complaining and start innovating," but at the same time I dont believe that the current access model that everyone is so eager to save the Music Industry is the answer.
While the access model does better meet consumer demands, it still remains an insufficient income platform for artists and content providers. Royalty payments take over half of content providers revenues, and artists receive a very minimal royalty per stream payment.
Until there is a model that meets consumer, artist and business demands... the music industry will be stuck in its current state. (And the quality of music will continue to decline to songs such as Rebbeca Blacks "Friday." REALLY! So lets start innovating!)
http://paidcontent.org/article/419-pandoras-ipo-filing-copyright-fees-eat-up-half-its-revenues/
GreGG Monday, March 21, 2011
One interesting point: people spend more on music and music related products than ever. I agree with that.
Unfortunately, we hear over and over that this is not the case. In a recent barrage of posts and re-posts illustrated with graphs from RIAA (if I am not mistaken), some experts were trying to prove the opposite, using irrelevant and misleading data.
martin atkins Monday, March 21, 2011
absolutely spot on Michael. we used to look to artists and musicians to innovate and inspire us - I was halfway through a lecture talking about how Panera Bread is using the 'pay what you feel' model at one store in St Louis and I just stopped and thought - "hang on - i'm standing here extolling the virtues of a fucking bread shop!!"
bestest
Martin Atkins
bernieschmidt Monday, March 21, 2011
That's a very high and mighty position taken by Mr CEA who is in the business of promoting hardware.
Yes, there is intellectual property embedded in hardware design, but we're not at the point of being able to stick an iPad into a photocopier and reproduce a 100% copy - we still have to buy the iPad.
Contrast that with a digital file of music or movie, where copying without paying is easy. The music or movie is intellectual property, but the copyist is not constrained by hardware.
If Mr CEA's paycheck depended on music sales, his tune would be different.
Goldfinger Monday, March 21, 2011
This guy is retarded if he thinks that Rdio, MOG or Spotify are whats going to change the music business. Really? Does he know anything about the financials that these services bring the business. Next time to a bit more research than just reading headlines on CNN.
SEAN.FM Tuesday, March 22, 2011
I think TDTMD brought it to the point. There should be more concentration on the fact that if music should be free, then why shouldn't the programs that help musicians make their music be free?? 900.00 for nuendo 500.00 for logic, 600 for pro tools, 63000 for waves bundle??!!!! plus subscription services for marketing, distribution etc... etc... the list is long of what these tech geniuses expect musicians to pay for while condemning them for wanting to sell their music. This is the most absurd discussion ever. Petricone, sorry, there is a reason you are SVP of THE CONSUMER ELECTRONICS ASSOCIATION. So, stay over there and live in your bubble where musicians don't have to listen to your squabble. When every musician moves to the open source music production programs like LMMS and Audacity (and every other program know to man becomes open source) then lets see how these techies handle their composure...
@djbrucki Tuesday, March 22, 2011
DJ Brucki
Amen.
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