Oct 7 2009

UK Music Managers: “Force Licensing Deals to Fight P2P”

UK Music Managers: “Force Licensing Deals to Fight P2P”

Says that if copyright holders and ISPs can’t voluntarily agree to licensing agreements to create services that “mimic” illegal file-sharing then the govt should impose solutions of of its own as it does with radio.

The real problem in the file-sharing debate has been the inability of copyright holders to create platforms and services that offer a viable alternative to its large selection of content and the ability to watch it when and where you want.

It’s been 10yrs since the advent of Napster and Apple’s iTunes seems to be the best they can do with music.

For on-demand downloading of movies and TV shows the field is still pretty empty, and I don’t see it changing until the MPAA and TV studios figure out a way to create a secure delivery connection.

Enter Brian Message and Jon Webster of the UK Music Manager’s Forum, which was formed back in 1992 to give them a “much-needed voice within the industry” so that it could “redress the balance of power between artists and the music industry.”

“The MMF is very concerned at the ease with which artists give up their rights through desperation in order to obtain recording and publishing agreements,” it says in it’s mission statement. “We are therefore running a campaign for the return of copyrights to artists.”

So when asked recently about it’s position on illegal file-sharing it says that the real problem isn’t P2P, but what I mentioned before, that we see little experimentation with legal services that offer people alternatives.

“If the creative industries and the ISPs cannot come to voluntary licensing agreements and provide services that mimic illegal P2P then the Government should intervene and impose licensing solutions that could include statutory licensing in the same way that radio is licensed,” it said according to MusicAlly. There should also be more experimentation with licensed services (through the Technology Strategy Board) to further develop consumer friendly offerings.”

If we each had a nickel for every time the RIAA and MPAA said that it would give customers what they want if only illegal file-sharing would go away so that it could afford to do so, we’d all be rich by now.

It’s downright stupid for anybody that wants to be called a business to argue that you won’t serve your customers because some – a minority – are misbehaving. It’s childlike and immature, and it’s not the first time we’ve discussed how the difficulty in securing licensing deals with copyright holders have hindered innovation.

Investors who used to put money in digital music startups have left for other areas like Twitter or Facebook where they are able to build a viable platform around the core product.

“There are not a lot of entrepreneurs involved in this space,” said David Pakman, a music industry veteran and now venture capitalist at Venrock Associates, back in July. “Investors lost a lot of money in this space. What the music industry never encouraged or even allowed was building an ecosystem around its product.”

And he’s right as we all know.

Back in January, UK ISP Virgin Media, after spending a staggering eight figure sum, had to finally scrap plans for its “Virgin Music Unlimited” because of last minute demands by major record labels that it block file-sharing with PCs not owned by subscribers to the service.

The revolutionary service would have helped to monetize the 95% of music downloads that the IFPI claims it loses to illegal file-sharing every year. More importantly, it would have given the music industry a new revenue stream that it claims to be searching for in its quest to embrace the digital music age.

The service was later give a green light in June with plans for it to launch later this year, but considering the speed of technology development it’s sad that copyright holders seem to do their best to make sure they launch at a snail’s pace if at all.

They won’t admit it, but the music and movie industry’s long for the old days with a world of physical distribution, and only embrace new technology when dwindling profits force it to.

Stay tuned.

jared@zeropaid.com

Related

  1. (Australian) ISPs outraged at music download licensing plan
  2. More PC Music Deals Seen Breaking New Legal Ground
  3. ‘Study’ By Online Music Licensing Org – File-sharing Makes Pop Music More Popular
  4. Pirate Party Clashes with Music Industry Boss
  5. EMI offers music catalog to Qtrax network
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