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Canadian Media Companies Target CBC's Free Music Site

silentbrad writes, with bits and pieces from the Globe and Mail: "A number of Canadian media companies have joined forces to try to shut down a free music website recently launched by the Canadian Broadcasting Corp., claiming it threatens to ruin the music business for all of them. The group, which includes Quebecor Inc., Stingray Digital, Cogeco Cable Inc., the Jim Pattison Group and Golden West Radio, believes that CBCmusic.ca will siphon away listeners from their own services, including private radio stations and competing websites that sell streaming music for a fee. The coalition is expected to expand soon to include Rogers Communications Inc. and Corus Entertainment Inc., two of the largest owners of radio stations in Canada. It intends to file a formal complaint with the CRTC, arguing that the broadcaster has no right under its mandate to compete with the private broadcasters in the online music space. ... 'The only music that you can hear for free is when the birds sing,' said Stingray CEO Eric Boyko, whose company runs the Galaxie music app that charges users $4.99 a month for unlimited listening. 'There is a cost to everything, yet CBC does not seem to think that is true.' ... The companies argue they must charge customers to offset royalty costs which are triggered every time a song is played, while the CBC gets around the pay-per-click problem because it is considered a non-profit corporation. ... Media executives aren't the only ones who have expressed concern. When the CBC service was launched in February, the Society of Composers, Authors and Music Publishers said that when it set a flat fees for the more than 100,000 music publishers it represents, it never envisioned a constant stream of free music flooding the Internet."

15 of 215 comments (clear)

  1. As A Canadian, I Just Want To Say... by Anonymous Coward · · Score: 5, Insightful

    ... what the hell, guy?

    I am having a hard time even understanding what the hell is going on here. Of course the CBC has a right to compete with private broadcasters... that's sort of what they do. The CBC is there to ensure that people will still have free access to the best in broadcast media, for free, forever, and as far as I can tell the only music that's available for free download is music that the artists have said they're ok with the CBC offering.

    The problem is... where?

    1. Re:As A Canadian, I Just Want To Say... by ThePeices · · Score: 5, Insightful

      The problem is that their business models are threatened by innovation, and therefore the innovation must be stopped ( usually by making the innovation illegal by new legislation ).

      The view of Big Media;
      Innovation is bad and can cause the loss of jobs and even entire industries to collapse. Old business models must be protected, and innovation threatens that.

      Our view;
      A static unchanging business that cannot adapt to the ever changing world is doomed to failure, in fact even deserves to fail.

      The real problem;
        - Rich companies being allowed to spend money to influence politicians.
        - Legislation for sale.
        - The "lobby" concept of bribery.

  2. Call the Whaaaaaaambulance! by TheSpoom · · Score: 5, Insightful

    So now that I've got my initial reaction out of the way...

    12.0 Why is there advertising on CBC Music?
    Advertising is the primary means that allows us to fairly compensate the artists we play on CBC Music. We signed an agreement with the Audio-Video Licensing Agency (AVLA), which represents over 1,000 music labels. We are very excited to report that through this deal, all artists registered via AVLA will be paid for having their work broadcast on CBC Radio 2, CBC Radio 3, and our 40 web radio stations.

    Another reason we've decided to pursue advertising on CBC Music is that, in the current economic climate, CBC cannot afford to have a large new service like CBC Music that isn't self-sustaining. This revenue stream not only allows us to survive, but also helps us to grow and continue to expand CBC Music.

    Emphasis added.

    So I'm not sure of the full legalities of it, but according to the CBC Music FAQ, they have acquired the right to stream all the music on their site.

    What's the problem? My guess is that these are companies that refused to sign, and they're bitching about the fact that they couldn't get the price they wanted for their music. Excuse me while I shed a tear or two.

    "The only music that you can hear for free is when the birds sing." In other words, if you haven't paid me and my friends to listen to music, you can't listen to it at all. What an asshole.

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  3. Grrr. by multiben · · Score: 5, Insightful

    I am so freaking sick of private companies who believe the only way to protect their profits is to legislate against other organisations threatening their market share. And I'm sick of governments and courts indulging them. Take it as an opportunity to better your services and provide something that CBC (or whoever you're whining about) doesn't - there are hundreds of ideas out there. You may actually surprise yourself and become more successful than you ever imagined.

  4. Re:Just protecting their assets by m.ducharme · · Score: 5, Insightful

    Except...that the media companies are asking for more restrictions and regulations, not less. And the media companies don't innovate, they take innovative work from one group of people and show it to another group of people, and charge high prices for the service. A service that's no longer required.

    The real problem is that while innovation is hard, distribution is not anymore. Someone at the CBC realizes this; the media companies, which insist on charging high rates for distribution, have not.

    Personally, I think what the CBC is doing is daring, and has a lot of potential to help connect Canadian musicians with audiences. Perhaps this can be a replacement for the obsolete CanCon laws, that currently mandate all those radio stations to play a certain percentage of Canadian music (regardless of how good that music is).

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  5. Re:Just protecting their assets by reve_etrange · · Score: 5, Insightful

    Not to mention the fact that the data seems to show that they stand to gain by promoting, rather than condemning, contemporary distribution models.

    I don't think it's protecting their assets so much as defending a particular, ideological view of art which is ultimately just a little blip in the historical trajectory of human creativity and how we share and experience it.

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    .: Semper Absurda :.
  6. Re:Just protecting their assets by SydShamino · · Score: 5, Insightful

    I don't think we should be telling them that are not allowed to use services provided by record labels.

    I don't think that the record labels should be allowed to dictate the copyright laws of our country to the point of regulating technology development, and I think that's a far greater and real threat than that of new musicians not finding experienced people in the music industry who want to help them succeed in exchange for a paycheck.

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    It doesn't hurt to be nice.
  7. Re:Just protecting their assets by Mordok-DestroyerOfWo · · Score: 5, Insightful

    I have a theory about people like you... You use the word "Socialism" in the same way that a 4 year old uses "Shit". You really have no idea what it really means, you just know that it gets a rise out of people. The Fox News talking heads are even more guilty of this, labeling President Obama a Socialist because he is slightly less of a Capitalist than they themselves. If you want to see examples of Socialism, look to a history book. What you are seeing is a government subsidized means of distributing music. If you are a citizen of the United States, I may remind you that we are rather Socialist as well. Unless you want the free-market to determine what roads we drive on, whose houses burn down, and which kids get a decent education please go shove your divisive partisan drivel into the nearest Fox News comment section, I'm sure they'd appreciate it.

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    "Never let your sense of morals prevent you from doing what is right" - Salvor Hardin
  8. Re:Just protecting their assets by realityimpaired · · Score: 5, Informative

    Proposing things to and supporting politicians with same views as you is not bribery. If they were bribing the police to bust you, then you would have a case. But it's not the same, and also, you are allowed to do the same.

    Actually, in Canada it is bribery. Our Elections act is quite clear on that point. It's illegal for a candidate or party to accept funding from an entity who is not a citizen of the country (and unlike the US, corporations are not citizens). Additionally, there is a limit to how much an individual can give, per year, to a given candidate/party.

    Violating the elections act can get a candidate's election results invalidated, and carries significant fines, in the case of a corporation giving money to a candidate. Lest you think that they'll find some way to hide the funding, their finances must be submitted to the elections officer, there is a limit to how much can be spent on elections, and their financial returns are a matter of public record, and can be searched by anybody.

  9. You're cure by Anonymous Coward · · Score: 5, Informative

    And yet the Conservatives (Currently in power in Canada) have been found 3 times to have breached these exact same laws (and fudging the elections finance submissions) and nothing has happened (barely even made a blip on the News).

    Unfortunately, there are MANY ways around these rules and way too many ways to bend them, thus neutering those laws.

  10. Re:Just protecting their assets by SwedishPenguin · · Score: 5, Insightful

    Lobbyism is bribery, period. It doesn't matter how much you dress it up it's still the same thing, people using money to gain more power than they're legally entitled to.

  11. Re:CBC are munchkining by psiclops · · Score: 5, Insightful

    Plus, the CBC being a Crown Corporation, is run by the state and funded by tax dollars, which also allows for many unfair advantages - They're claiming non-proft, getting the tax break, and being funded by tax dollars to begin with, don't even need to be profitable or self-sustaining, and is, as a result, undercutting big media.

    Contrary to what people here (who really will just say anything to avoid just coming out and saying that all this hoopla is because they want things for free), might insist, this is a huge dick move by the CBC, and they have every reason to be pissed.

    How is it a dick move to do precisely what they were set up to do?
    from their mandate:

    The 1991 Broadcasting Act states that...
    "...the Canadian Broadcasting Corporation, as the national public broadcaster, should provide radio and television services incorporating a wide range of programming that informs, enlightens and entertains; ...
    be made available throughout Canada by the most appropriate and efficient means and as resources become available for the purpose, and ...

    this would seem to be the most efficient means to provide this service.
    the fee was negotiated and agreed to. you can't change your mind afterwards unless you hold that right as part of the initial agreement.

    Canada has decided as a country that they wanted to set up a body to make entertainment available to all its citizens the CBC is doing that in the best way possible. sorry if you don't like that but well, deal with it.

    And all this talk about innovation is patently absurd, you'll see these very same people in any other thread arguing about how "blah blah blah ON A TABLET" is invalid and not innovative, but now, "blah blah blah, BUT FOR FREE" is the be all, end all of innovation?

    1. They're not trying to patent a model for free distribution of music.
    2. Their distribution method is not exactly the same as big media, only free.

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  12. Re:Just protecting their assets by Formalin · · Score: 5, Insightful

    The CBC is government funded.

    Not sure I see the relevance, though. Should libraries be shut down because they cut into Amazon's profit? Ridiculous.

    Commercial radio is so god-awful here, all I listen to is CBC 1 (no commercials, mostly interviews and talk programs, news). Sure beats the alternative of 60% commercials, 40% of the same twenty songs repeated and dumb DJs hurr durring.

  13. Re:Just protecting their assets by microbox · · Score: 5, Informative

    They also provide financing for new musicians,

    As somebody who was involved in the underground music scene in Saint John's, I can say that the record labels are useless to new musicians. The best way for new musicians to finance themselves is to play all-ages shows, sell merchandise, and apply for (small) grants from the government. All the labels do is engage a high-risk high-return advertising machine, and work the musicians to the bone.

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  14. Re:Just protecting their assets by jaymemaurice · · Score: 5, Informative

    You don't? You mean you don't see how the CBC is cutting and gutting into new business startups, that they're exceeding their funding mandate by doing this either? Libraries are far different from what the CBC is pulling.

    Almost EVERY single radio station is owned by Chorus/Rogers or is planned to be owned by Chorus/Rogers. Even the college radio stations are being bought. In my mind, all CBC is doing is modernizing. Price is not the only thing to compete on... what about News/Traffic humorous enjoyable adverts, morning shows and proper exclusive programming?!? I remember turning on the radio at a certain time to hear the on-going history of new music or could change the station during commercials or news... since Chrous/Rogers has been buying all the stations Canadian radio has gone to the shitter and they have every right to be scared that they will no longer be able to synchronize the commercials on every radio station at the same time and playing almost the same content commercials programs and morning shows.
    Chorus / Rogers are complaining because free streaming by CBC threatens them by giving listeners options, something they figured they could work around by buying everything.

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