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Jan 18 2023

🔵 More parties agree change is needed in streaming remuneration. So when will it happen?

The latest news from the music and tech industries
Hi there -

Music Ally's NY:LON conference is continuing to deliver notable comments, and the latest is courtesy of Tom Gray, perhaps best known of late for spearheading the #BrokenRecord movement.

In truth, what Tom says at the event is entirely in line with the position he has held for years now. What's fascinating is that in clarifying his position regarding streaming (in short that the current model does not work and a new one - in whatever form that might take - is desperately needed), you realise that he and Lucian Grainge are essentially on the same page.

In a world where indie artists and majors tend to be ideologically opposed (though IMO there's a degree of symbiosis there that few wish to acknowledge), that is quite a development. If Spotify and co weren't worried before, they probably should be now.

The opinions of the panellists seem to align with the sentiments I expressed in last week's Digest - namely that it would be good to now see more collaboration within different factions of the music industry in addressing this problem, and ideally before regulation is forced to intervene too. 

Doubtless DSPs may well seek to resist this all. That would be a natural business response, after all. However when those arguing for change now includes Universal, I would think change is inevitable.

Perhaps the detail to keep an eye on now is the degree to which Universal teams up with others to address this, rather than fighting for purely their own interests. Time will tell.

Have a great evening,

D.

🎶 written whilst listening to Fugazi's "In On The Killtaker". Granted, purists may well argue that Repeater or even Red Medicine are better albums, but this is the one I had on repeat from the day I bought it back in 1993. It's a true gem, bursting with righteous anger. I just wish they'd reconvene for one last album 🙏🏻🤞🏻
Stories from the Music Industry:
Regulating the streaming economy: Consumption isnt the same as consumer
"Consumption isn't the same as consumer. The number of people who engage with your music culturally, socially, is more important than the number of times that your music gets heard. That's the bit that's broken." Gray stressed he is open-minded about what the solutions might be, rather than married to any particular model like user-centric. The key for him is to bring cultural value, reach and audience back into how music is valued. "The same amount of value comes from three people listening to a track 3,000 times as from 3,000 people listening once. Thats totally dissociative," he said. "The reason why user-centric is so appealing to me is that if people's direct spend gets connected to the music they listen to, that will change their behaviour."

👆🏻Hot take: given that Tom Gray has arguably been in opposition to the major labels positions on streaming to date, it is interesting how much his view arguably now aligns with that of Lucian Grainge.
Payment processing platform Mastercard announced a web3-based Accelerator program for music artists. The program, which starts in spring 2023, will prepare emerging musicians, DJs and producers to build their brand through web3 experiences, including minting NFTs, engaging with a virtual community and live performances in the metaverse. The space will also enable fans to participate through the Mastercard Music Pass, an NFT that gives access to web3 Music educational material and resources.

👆🏻Hot take: I've not seen much coverage for this. In principle it sounds like a solid idea. Curious to see how it plays out. 
"Are we putting too much burden on artists when were asking them to be so active on social media? Thats a real topic. You cant expect an artist to be making incredible music, touring, and then spending hours a day making great social media across multiple platforms," he said. "Thats something we all need to figure out as an industry But I think one thing that gets lost in that a little bit is that most of the music that goes really viral on TikTok, its not necessarily the artist themselves that are posting that video."

👆🏻Hot take: I feel like the answer here is deflecting from TikTok's role in this all. Yes, fans generate a lot of momentum, but that doesn't mean artists are not coming under undue pressure too. 
In a letter to BBCs chairman, Richard Sharp, a group of representatives asked for assurance that BBC Introducing would be protected amid cuts to local stations. The Introducing platform has helped to launch the careers of artists including George Ezra, Ed Sheeran and Florence + The Machine. Those writing the letter includingincluding Mark Davyd, CEO of the Music Venue Trust, Jon Collins, CEO of LIVE and the CEO of the Association of Independent Music, Silvia Montello said BBC Introducing plays a vital role in supporting new musical talent in the UK.

👆🏻Hot take: I sincerely hope the BBC doesn't kill off Introducing. Ironically whilst one might argue there *are* areas where the BBC competes with commercial partners a little too much, I don't feel this is one such example. A loss to UK music if shut down. 
Shares of the company rallied 10% on the NASDAQ on Friday before the Gizmodo article was published after market hours on that day. Meanwhile, staff told Gizmodo that axed employees have been offered what one described as pitiful severance that doesnt include healthcare. The severance package would only be given if SoundHound can raise more money, three former employees reportedly said. Im actually quite shocked by the way the layoffs were handled I was expecting a 17-year-old company, which is now a public company, to at least provide bare minimum severance, one of the axed employees was quoted by Gizmodo as saying.

👆🏻Hot take: perhaps not a shock to hear of layoffs given the wider context of tech redundancies, but still problematic as to how this has been executed.
Stories from the Broader World of Tech:
Finally, the UKs online safety bill gets its day in parliament heres what you need to know
The bill has critics on both sides. Tech companies say criminal sanctions threaten investment into the UK and the Samaritans, the mental health charity, says removing the duty of care on legal but harmful content for adults will squander a vital opportunity to save lives. But the fact that criminal liability for endangering child safety online is set to go on the statute books shows that MPs agree with Ian Russell.

👆🏻Hot take: I agree that platforms should be more accountable for their content, but cannot help but think that policing this from all sides is a huge undertaking that neither party may be capable of managing. 
Despite deepening opposition from the world of web infrastructure to Googles approach, the U.K.s privacy watchdog appears content to stand by and let Google proceed with a proposal that technical experts at the W3C are warning risks perpetuating the kind of privacy intrusions (and user agency and transparency failures) that have mired the adtech industry in regulatory (and reputational) hot water for years.

👆🏻Hot take: as the UK Govt starts to argue over which EU laws it continues to replicate (now that the timeframe on those is about to expire), it is worrying to see the ICO seemingly disinterested in Google's new ad tech, which looks at best concerning and at worst bad news for everyone except Google. 
ChatGPT and AI generally isnt trained to be magical. Its trained to provide responses based on the information its been fed. And we can help train it by counter prompting and providing additional information and refinements. This use case example isnt intended to generate the super-secret-worlds-most-profitable-strategy. It provides a starting point. But it is fantastic for ideas and brainstorming. Where I found this most valuable was in the copy and video strategy recommendations. Some of these were really good ideas that I could work with. There are absolutely some ways that AI can automate some of the things we do now. Generating a strategy isnt one of them. But, whats clear is that it is far more valuable in helping us think through a strategy than a Google Search may be. It can be customized to your specific needs and product, which a search result never will be.

👆🏻Hot take: ultimately this demonstrates why AI probably isn't a good tool to create a strategy for you, but equally is highlights what something like Chat GPT *can* do for you in this space - and the short answer is "a lot". 
Other Reads I've Enjoyed Lately:
Inside Elon Musk’s “extremely hardcore” Twitter - The Verge
Three months, thousands of layoffs, one ego

👆🏻Hot take: a fantastic account of the trainwreck of Musk's Twitter's acquisition. Tough to read without wincing. Repeatedly. 
The pioneering electro, soul and jazz funk night united Black and white kids, bucked superstar DJ culture – and rivalled the Haçienda

👆🏻Hot take: I love articles like this that highlight influential cultural moments or institutions. Terrific read. 
The metaverse is a collection of shared virtual worlds where users can work, play, shop and interact with one another, often as avatars. Take a look at 15 metaverse companies giving shape and meaning to these virtual spaces.

👆🏻Hot take: if you need a helpful intro to the metaverse and the biggest (or most likely to succeed) players within it, look no further...

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