THE BARGAINING POWER OF DIGITAL PLATFORMS

It’s a matter of fact that nowadays listening habits are changing, provided that a big percentage of U.S teenagers, accounting for at about 64, are getting used to listen music on YouTube, rather than watching MTV. Well the thing is that the former uses the videos provided by the latter with a result much more appealing in terms of listenings and watchings, earning huge advertising revenues. Let’s think how some popular videos as Gangnam Style have increased massively the popularity of K-Pop, having been clicked milions of times. These figures clearly benefit the image of those acts in terms of marketing and brand value. However, in terms of songwriters/cowriters shares, the result is not great.

Infact, the income generated by streaming,  has been considerated moderated by artists and record labels, while on the other hand there has been a significant growth in terms of revenues for the owners of the recordings. Spotify, as revealed from an independent Swedish label called Hibrys, doesn’t recognize any revenues for musicians and also publishers/songwriters get a low share. However this tool advantages the labels, providing that it has become so popular within them.

In addition, Pandora has reducing his royalties commtiments, on a basis that the satellite radio pay less than 10% of their revenues in royalty payments. Well this is unfaire, also taking in consideration that in Usa artists don’t get paid for air play.

So let’save the songwriters, let’s think about a new business model that could reduce the bargaining power of labels and digital platforms !!

guardian.co.uk

http://www.guardian.co.uk/media/2012/oct/10/music-streaming-songwriters-youtube-pandora

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