by VVN Music
The royalties landscape is very convoluted in this ear of new technology.
Two different types of royalties exist in the music business, those for songwriters and publishers and those for performers and record companies. The songwriters/publishers have few issues as they are paid by all forms of media but those for the performers are all over the place.
Most streamers are hit the hardest by rates followed by venues for public performance; however, AM/FM radio stations in the U.S. pay nothing and the rates for the streamers appears to be unfairly skewed with the small guys paying the most and the big companies, who have a stable full of lawyers and negotiators, paying the least.
That is the case for YouTube who is paying a fraction of the amount that most other streamers do for the playing of musical pieces and many musicians are not taking this laying down. The members of Sixx:A.M., Nikki Sixx, James Michael and DJ Ashaba, are the latest to call for YouTube to start paying equitable rates.
Dear Mr. Page,
The sound of musicians knocking on YouTube's door demanding change is growing ever louder.
Recently, as a result of action and statements made by artists as diverse as Sixx:A.M., Debbie Harry, Nelly Furtado, Jay Z, Garth Brooks, Katy Perry, Stephen Tyler and Billy Joel, YouTube's CBO Robert Kyncl met with independent artist representatives and asked them to help pause this protest in return for action.
No action has been taken, meetings have been postponed, emails remain unanswered. The lack of action has hit a sour note with musicians, so we will be RENEWING OUR PROTESTS and taking the issue into our own hands.
So we are now appealing to you Mr. Page, as a saxophone player who ironically credits his love of music as the inspiration behind the success of the worlds most valuable company, to step up. As the man who coined the slogans, 'Don't Be Evil' and 'Do The Right Thing,' we want you take your own advice before irreparable damage is done to the future of artists around the world. Artists from every genre are finding it impossible to pursue their art in a world dominated by YouTube.
Without changes, young musicians will no longer be able to make music for a living and the next generation of fans will be robbed of great artists. Dreams of breaking into the music industry will effectively be unattainable.
In case you have not heard, here is a summary of complaints:
Please act before it is too late.
- YouTube unfairly pays artists and labels an estimated 1/6 of what its competitors, Spotify and Apple pay
- Recent data revealed that vinyl sales contribute more to the music industry than advert funded streaming services, a market which YouTube dominates
- YouTube claims to have paid $3 billion to the music industry to date. Spotify contributed $1 billion alone in 2015 according to the IFPI and while Spotify pays $18 per user per year, YouTube pays less than $1
- Even these funds are released only if the artist has a deal with YouTube, but unlike other services, the artist cannot choose whether they are on YouTube or not. Much of their material has already been illegally uploaded.
- Artists are faced with a choice: Either license content to YouTube for a fraction of what should be paid and enjoy limited protection from YouTube's content ID systems or be forced to issue take down notices for every single infringement on the system. Many including 5 time Grammy Award winning composer Maria Sneider, argue that this amounts to racketeering (https://musictechpolicy.com/2016/05/15/guest-post-by-schneidermaria-open-letter-to-youtube-pushers-of-piracy/)
- This disproportionately affects independent and new artists who have their copyrights illegally exploited for free and cannot make a living from the music they create
- YouTube make a big show of offering to pay legal fees for users wrongly hit with 'take down' orders, while offering no protection to the vast majority of artists whose material is illegally uploaded (http://www.theverge.com/2015/11/19/9760370/youtube-copyright-legal-fees). They name and shame copyright holders who ask for their illegally uploaded material to be taken down. This actively encourages illegal uploads
- The antiquated Safe Harbor provision of the Digital Millennium Copyright Act (DMCA) allows YouTube to operate in this way, protected from prosecution for illegal uploads while basing its business model on them
- The total 2015 revenue of Google was $75 billion. The total annual revenue of the global music business, in comparison, is less than $15 billion. And yet music is the biggest driver of YouTube's business - 82% of users are on YouTube to access music (IFPI). Google makes money from selling its users' data to advertisers including those consuming music on YouTube
- Mr. Page, in Fortune magazine you stated that you felt that your 'music training lead to the high speed legacy of Google'. Plenty of musicians are hoping for a high speed resolution to this dispute and to this unfair system.
Sixx:A.M. - James Michael, Nikki Sixx, DJ Ashba and artists worldwide