TOWARDS AN EQUITABLE MUSIC ECONOMY

Aram Sinnreich, PhDAssociate ProfessorAmerican University SOC

ICA 2016Fukuoka, JP

June 10, 2016

SLICING THE PIE

STREAMING MUSIC IS BECOMING THE DOMINANT DISTRIBUTION MODEL

$0

$5

$10

$15

2010 2011 2012 2013 2014 2015

Streaming

Other Digital

Synch

Physical

Global music industry trade revenues. Source: IFPI

(billions)

DESPITE (OR BECAUSE) OF THIS, IT’S CATCHING A LOT OF FLAK

“Music is art, and art is important and rare. Important, rare things are valuable. Valuable things should be paid for”

- Taylor Swift

“I tell people condoning streaming is like condoning the Chinese that are killing

elephants for their tusks and carving ivory statues”

- Tom DeLonge

“The old boss and the new boss have joined hands,

they’re singing Kumbaya, and they’ve changed the words to, ‘Fuck the songwriters! Fuck the performers!’ ”

- David Lowery

THE WAY THINGS WERE (2000)

‣ Effective royalty: 6.5% ‣ Chance of payment: 5% ‣ Percentage of professionalmusicians earning royalties:0.05% (1:2000)

‣ Effective royalty: $0.03/song

‣ Effective royalty: $0.00011/spin/listener

‣ Effective royalty: 0% ‣ Chance of payment: 0% ‣ Chance of getting played:very small ‣ Cost of payola:$100,000-200,000/song/week

THE WAY THINGS ARE (2010S)

THE WAY THINGS MIGHT BE (ROUGH MIX)Pi

e Si

ze

EquityPie

Blockchain rights/royalties

Fair Play, Fair Pay Act (FM $)

IRFA (FM/web rate parity)

Bypass SoundExchange

Bankrupt/balkanize Streaming

Undermine Net Neutrality/DMCAAllocation for Music Producers

Songwriter Equity Act (FMV)

?

THANK YOU.ARAM@AMERICAN.EDU

Download this paper:j.mp/musicpiechapter