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EU Sides With RIAA, Says YouTube Underpays For Music Streaming (mercurynews.com)
Profits from both CD sales and digital downloads are declining, while online streaming now accounts for the majority of the $7.7 billion U.S. music market, according to a new article. And the music industry's newest complaint is that 25% of music streaming is happening on YouTube, which they believe is paying them too little. An anonymous reader quotes the San Jose Mercury News:
Now, the battle is heating up as the European Union is expected to release new rules later this year for how services such as YouTube handle music, potentially upending some of the copyright protections that undergird the Internet... The E.U. has formally recognized that there is a "value gap" between song royalties and what user-upload services such as YouTube earn from selling ads while playing music... How such a law would address the gap is still being decided, but the E.U. has indicated it plans to focus on ensuring copyright holders are "properly remunerated." Even the value gap's existence is disputed.
A recent economic study commissioned by YouTube found no value gap -- in fact, the report said YouTube promotes the music industry, and if YouTube stopped playing music, 85 percent of users would flock to services that offered lower or no royalties. A different study by an independent consulting group pegged the YouTube value gap at more than $650 million in the United States alone. "YouTube is viewed as a giant obstacle in the path to success for the streaming marketplace," said Mitch Glazier, president of the Recording Industry Association of America... YouTube pays an estimated $1 per 1,000 plays on average, while Spotify and Apple music pay a rate closer to $7... The music industry claims YouTube has avoided paying a fair-market rate by hiding behind broad legal protections. In the United States, that's the "safe harbor" provision, which essentially says YouTube is not to blame if someone uploads a copy-protected song -- unless the copyright holder complains.
YouTube argues that its automatic Content ID system recognizes 98% of all copyright-infringing uploads -- and that each year they're already paying the music industry $1 billion in royalties.
A recent economic study commissioned by YouTube found no value gap -- in fact, the report said YouTube promotes the music industry, and if YouTube stopped playing music, 85 percent of users would flock to services that offered lower or no royalties. A different study by an independent consulting group pegged the YouTube value gap at more than $650 million in the United States alone. "YouTube is viewed as a giant obstacle in the path to success for the streaming marketplace," said Mitch Glazier, president of the Recording Industry Association of America... YouTube pays an estimated $1 per 1,000 plays on average, while Spotify and Apple music pay a rate closer to $7... The music industry claims YouTube has avoided paying a fair-market rate by hiding behind broad legal protections. In the United States, that's the "safe harbor" provision, which essentially says YouTube is not to blame if someone uploads a copy-protected song -- unless the copyright holder complains.
YouTube argues that its automatic Content ID system recognizes 98% of all copyright-infringing uploads -- and that each year they're already paying the music industry $1 billion in royalties.
On the other hand, why should YouTube benefit from widespread copyright infringement? I can understand arguments about compensation for the artists and others directly involved in the creative process vs. benefits to the general public, but YouTube is just an intermediary, even if it's a very big one.
Also, from my own professional experience, YouTube is appallingly bad at living up to even its basic obligations under the extremely generous (to hosting sites) provisions of the DMCA and its equivalents around the world. I'll have no sympathy whatsoever if they take a big hit on this one.
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
But it's not copyright infrimgement. It's paying agreed charges when the charges weren't well thought out by RIAA when they were set before YouTube was conceived. There is no piracy/infringement happening, just a unilateral change to terms of a contract because the RIAA wants more money.
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But it's not copyright infrimgement. It's paying agreed charges when the charges weren't well thought out by RIAA when they were set before YouTube was conceived.
Can you provide a citation for this? I have never heard this before, and TFA says nothing about any pre-existing agreement, which leads me to believe that you just made it up.
"YouTube is viewed as a giant obstacle in the path to success for the streaming marketplace," said Mitch Glazier, president of the Recording Industry Association of America...
Here's a Jewish joke (I'd like to tell it in Yiddish but then nobody would understand it):
Every day at the synagogue, Moyshele falls on his knees and prays "oh God, I have seven mouths to feed, payment is bad, I don't know where to get the money for shoes, oh let me win the lottery! You know I need it!" This goes on and on for weeks, more desperate every day.
Finally there is a cloud of thunder and lightning and a reverbating voice states "Moyshele! Give me chance. Buy a lottery ticket."
I mean, "giant obstacle in the path to success for the streaming marketplace"? What streaming marketplace? For the RIAA, any kind of streaming is criminal because of the pricing. The RIAA wants a "streaming marketplace" as a "self-destructing media marketplace" and they want the media priced comparatively to previously, just without the option to hear stuff multiple times and collect and arrange them. DRM on steroids: region coding in spacetime rather than just space.
That's not what streaming is about.
Surely it would be copyright infringement to redistribute those works without a licence from the rightsholders of some form, though, even if YouTube itself could avoid responsibility for the infringing acts of its users because of the safe harbor provisions in laws like the DMCA.
Given that YouTube's origins are of questionable legitimacy in terms of respecting copyrights, yet today the site is one of the biggest names in online video hosting and features revenue-generating ads, I'm still voting "live by the sword, die by the sword" on this one.
Of course, I'll vote the same way if the demands of Big Media groups like the RIAA prove to be excessive, YouTube walk away from the deal and take down the associated videos, and then it turns out that the previous deal was actually a fair market rate and instead the RIAA wind up with less in royalties than before.
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
I don't know about preexisting as in 'before youtube went up', as that is aeons ago. There are however agreements of some nature: c.f. https://youtube-creators.googl...
I *think* initially Youtube did the DMCA dodge of 'if you report it we take it down, until then we didn't know, we didn't do bad, we'll pull THAT upload'. Around the time google acquired it(?) they switched to the automated detecting and either 'royalties or yanked' method. Some groups don't offer the choice - video is taken down regardless. I know with japanese music groups there are lists of the ones that permit uploads and take the revenue from; while others seek to have your account banned if you try, no mercy. So does seem there are agreements with the artists...but that might be the RIAA's issue: maybe they aren't getting their 'fair share' for doing nothing.
The article says "YouTube pays an estimated $1 per 1,000 plays on average".
Are you under the impression youtube is voluntarily kicking over a billion bucks over out of the goodness of their hearts?
And it was trivial to find this
"The rhetoric intensified this year as YouTube's licensing agreements with the three major record labels - Sony, Warner and Universal - came up for renewal."
You can use that string to google the article.
It took me *two* searches to find it and about 35 seconds.
Harder than the last citation monkey.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
I usually like the stance against huge monopolies like Google and Microsoft that EU goes for, but not when it's in support of asshole troll associations like MPAA and RIAA.
Honestly, I want to see YouTube just outright removing all music videos licensed under big labels that lobby under RIAA just to see what would happen. They'll never do it, and RIAA will keep whinning and begging for more money (occasionally using artists to do it) 'till the end of times, but I'd want to see that happens just so that these associations take another shot in the foot like the multiple ones they already did.
It's quite obvious what happens when labels decide to take their content out of hugely popular platforms to put into stuff like Tidal and other crap like that. You already tried those, you lost it.
Honestly, from a cold perspective, here's what happens: everyone that's not willing to pay for a streaming service subscription or doesn't have money to keep paying directly for digital music goes to YouTube, plain and simple. The idea that a majority of people who goes to YouTube would migrate to paid streaming services or outright buying digital music is as ridiculous as saying that every pirated music would automatically translate to CD or digital music sales in the past. It doesn't. We all know that, despite the likes of RIAA and MPAA repeating this mantra to death.
YouTube won't pay more for those views because it would disrupt business for them with advertisers, they can't keep business afloat with something like this because they have multiple times more views in comparison to paid subscription music streaming services, and the music industry also cannot give away such a lucrative stream of revenue.
It's all kinda bullshit anyways. YouTube has contracts with major music labels. This isn't some sort of charity or fine that YouTube pay for them. Music labels signed deals with YouTube to get that revenue. If YouTube doesn't have a contract with a specific label that has music on YouTube, the video gets flagged and taken down by the overzealous automatic DMCA bot. So the licensed music that is on YouTube is there because there is a signed contract agreement on both sides stating that 1 buck every 1000 plays is the deal. And it's far better than what most people creating content on YouTube gets. It's far better than what creators making content exclusively for YouTube that is not only music but also video gets.
You can't compare YouTube with streaming services as if the model of business was the same. It's like saying that TV stations should pay the same as Cable TV which should pay the same as movie theaters for content. They don't. They all have different contracts that will stipulate payment based on how each media makes money, which in turn is directly related to target audience and revenue stream.
The comparison that needs to be made is what music labels get on YouTube versus what all the rest do. Music labels have a far better deal. If I had a buck for every 1000 views on my videos, even though I have almost nothing published, I'd still be making a living from almost nothing. The RIAA is complaining about having an incredible deal effortlessly. If they really think the whole thing is unfair, cancel your contracts and tell YouTube to remove all their intellectual properties from the website. They don't do it because they don't want to lose the revenue. And if they were so sure that people would migrate to other music streaming services, they would have done it already.
One of the paradoxically interesting flameouts. The observation that nobody is attacking the EU, when the US would be vilified, is rather insightful on the surface.
Criticism is usually funneled to a US political body or a Corporation on slashdot. I can see how it might be a disturbing pattern to non-US readers. This is probably because the EU (as a whole) is too unfamiliar and fragmented to make casual connections, for the majority of readers. When talking about the US or US Corporations (although you sometimes see a random Monsanto or Alibaba, etc), there are existing insiders, an accessible history, and strong pre-existing viewpoints. Visitors want to read about and discuss topics they are able to relate to and reason about.
Beyond the blame, I think there's obvious self-injected bias of the poster. The focus on bigotry/pro-white? male-centric views is apt, if you analyze posts in a cursory way. Every /. reader, I know IRL, fits that stereotype so our views will often be framed from that perspective. From the first time I visited /. the bias toward a specific sexuality (specifically straight), was something that was refreshingly absent. I feel like that's just something the poster wants to be true.
Nothing is wrong with being frustrated by the state of /.
I don't think there's anything to gain from trying to SJW the site into some equity of content.
You're free to leave and find a subreddit you like better.
That's just my .02
Often wrong but never in doubt.
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The RIAA associated companies voluntarily put their music up on the site...
Isn't there a European record industry association, or a consortium of national associations that would be better placed here?
So why doesn't RIAA demand that all of their products are removed from Youtube?
So why doesn't RIAA demand that all of their products are removed from Youtube?
I've been told that this is because they'd then lose access to the ContentID system, which detects copyright infringement, and piracy would run amok. This is the true leverage of (YouTube's interpretation of) the DMCA — not because it allows a lot of undetected infringement, but that it gives YouTube leverage in negotiations because the record companies would lose protection if they walked away.
Google could buy the entire music industry using there lunch money. And maybe should just to shatter these retarded into a million pieces.
As long as YouTube is shielded by the DMCA, that can't be a winning strategy for the RIAA, even if in theory they thought it would be in their favour. In practice, they know lots of people will just put up illegal rips instead, and with YouTube effectively immune to any sort of consequences because of the safe harbor provisions, pulling the "authorised" versions would just mean losing what controls and revenue they do have. (This was one of the points mentioned in TFA.)
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
The DMCA is extremely generous to hosting sites. It basically puts them above the law as far as normal responsibilities for respecting copyrights are concerned, as long as they comply with some simple conditions about takedowns. And as I mentioned before, IME they sometimes don't even comply with those very well, but still seem to benefit from the immunity anyway.
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
More verifiable version of story.
Disclaimer: I'm neither endorsing nor criticising the writer's take on the subject; I was simply annoyed that TFA was so exceedingly vague about what conclusion exactly had been reached by which contingent of the EU government. Because "the European Union is expected to release new rules" does a grave injustice to the complex process through which such rules are decided upon.
Artists make $0.0000955 per listener, per play on radio. Meaning it takes over 10,000 listeners/streams to earn that $1 - not just 1,000. Youtube is actually paying 10X the royalty that a performer would make on the radio... And Spotify/Pandora/etc. are paying even higher.
Browsing at +1 - no ACs, I ignore their posts. So refreshing!