Arrrr Me Mateys: The Great Piracy Debate

| 2011-09-12 22:33 | Written By: by Ned Hepburn

Arrrrr! Ok, that was the last pirate related joke on the whole piece. I tell you what. There'll be one more. You'll just have to keep reading. 

If you're anything like... er... everyone... you've probably downloaded an album at some point. Previously, to steal an album, one had to befriend a person at a record store and then create a diversion (the olde friend-having-a-seizure-in-the-magazine-section trick) in order to pilfer a compact disc. Nowadays, it's mindblowingly more easy to do so - with a few strokes of the keyboard and decent speed internet connection you can now own, say, Chaka Khan's entire discography. Or perhaps something else. I'm quite partial to 'Ain't Nobody'. 

Regardless, piracy has become so much the norm that one only has to keep their ears open. One of the the most alarming moments I had this past year was overhearing a rather prim couple of college girls in line at a chain coffee shop discuss how they got free albums. 
"I've got a Demonoid account," said one.
"I just type mediafire after an album name in Google," said the other. God's honest truth: these two young women looked as clean-cut and upper-middle-class as a Norman Rockwell painting. And they were openly talking about stealing. 

It was magical: like seeing two unicorns remember and perform all the words to Notorious B.I.G.'s "Juicy" at a partiocularly good party. Where internet nerdery might make you think that piracy is relegated to spotty youth in basements in Adelaide, the reality is that most of us know how to pilfer the latest album.

Artists have two directions to choose from: the more discerning will accept the fact that inevitably if someone wants it, they'll be able to get it. Radiohead, Girl Talk, Neutral Milk Hotel have all recently offered their albums for free and in turn have reaped huge benefits from their fans who are willing to pay money for their art. On the other hand, musicians such as Metallica and DJ Shadow have spoken out against piracy, citing that it devalues the music and thus the artist. 

In one study, a full 18% of Australians that regularly use the internet are involved in file sharing. While some might argue that this is a huge deal, it could be said that the level of engagement by the community has led to a more diverse listening experience, with bands handed to friends over the internet like mixtapes before them. 

Who is right? What do you believe? Tell us in the comments. We'd really like to hear what you have to say. 

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Piracy and Australian independent music: Q+A with Lars Brandle

| 2010-09-24 15:00 | Written By:

Australian music journalist Lars BrandleJust how is music piracy - wherein consumers download artists' music without paying for it - affecting the Australian independent music industry? It's an important question.

We broached the topic with Lars Brandle [pictured right], a Brisbane-based journalist for Billboard Magazine and The Music Network.

What's your take on music piracy, Lars?

The definition of 'music piracy' really needs to be locked-down. It's piracy when the copyright owner hasn't given consent for their music to be distributed. If an artist wants their fans to file-share their goods, all power to them. It's worked in favour of some artists, most notably the Arctic Monkeys.

But if you look at the numbers, it's clear that file-sharing has punched holes in the industry. Consider, in 2000, the year after Napster arrived on the scene, the global recorded music business was worth almost US$37 billion. In 2009, the IFPI reported a global value for the biz at US$17 billion. That's a US$20 billion drop in a decade. 

Do you see it as a positive or negative thing for artists?

It's only a negative if the artist has no control. If they want their music to be distributed without money coming back to them, that's fine. Never underestimate the brain-power of an artist. Some might give away tunes to create a buzz and make their money from other streams - gigs, or merch perhaps. And some musicians just want to be heard. 

What - if anything - should we do to combat this mentality?  

That's the $17 billion question. I don't have an answer to it. No one does. But there are a number of weapons in the industry's arsenal - partnerships with ISPs, legislation, education, and making sexy product - stuff that people want to buy.  

Should such acts be accepted as the norm, or should industry bodies and labels continue to push against the tide through lawsuits and fear-mongering? Is there a better way?

Lawsuits are old news. They didn't work, and they made the industry look like a pack of tyrants. Stories of kids being sued for downloading Christmas carols just ain't going to help. There's no easy win here. And the biggest guns the industry has on their side is the artists. But the big-shots are unlikely to front any major anti-piracy campaigns after the vitriol hurled at Lily Allen and Lars Ulrich.

Should the onus be on the artists to try harder for fans' financial support in the face of technological evolution?

Yes and no. Certainly the artist should play a bigger role in all aspects of their business. It's not just about being a 'creative' anymore. That said, the artist relies on good counsel from their manager, label and other supporters.  

Finally, has piracy helped create a level playing field between the independent music industry and the majors?

The playing field is pretty muddy at the moment, and all labels are having a wretched time playing in it. If you study the market-shares of the recorded music industry, little else has changed. It's tough out there for everyone.

Thanks for your time, Lars.

Lars Brandle has forged a career reporting at the frontline of the international music industry. For the best part of a decade, Lars served as the London-based Global News Editor for America’s Billboard Information Group. Now back in Australia, Lars heads-up Billboard Magazine’s Australasian bureau. Lars is also senior correspondent with The Music Network, and is a regular contributor to numerous international publications including the U.K. titles IQ and Music & Copyright. 

For more info on AIR and Australian independent music, visit http://www.ausindies.com.au/

Piracy and Australian independent music: Q+A with Nick O'Byrne

| 2010-09-23 16:00 | Written By:

Nick O'Byrne, general manager of Australian Independent Record Labels Association (AIR)Just how is music piracy - wherein consumers download artists' music without paying for it - affecting the Australian independent music industry? It's an important question.

We broached the topic with Nick O'Byrne [pictured right], General Manager of AIR, the Australian Independent Record Label Association, who are the fine folks behind the Jagermeister Independent Music Awards and ausindies.com.au.

What's your opinion on music 'piracy', Nick?

If you download music without the permission of the rights holder - that is, the artists and/or their label - then you are stealing. Permission is the key word here.

I've heard and read a million justifications for illegal downloading but in the end I can't help thinking that it comes down to a selfish decision made by the downloader... Every time you download illegally you are asking, "Is my 'need' or 'want' for this song more important than the value that the artist or label attributes to the song?"  If you say yes, then you are putting your interests above that of the rights holder. It's selfish, it's stealing.

A piece of music has an intrinsic value. Don't forget that every song took time to write, record, mix and master. Mixing, mastering and recording cost money, instruments cost money, marketing and manufacture costs money. We rarely discuss the years of practice and hard work that it takes to master the craft of songwriting, arranging and playing an instrument. Is that really worth nothing? 

Finally, record labels are not the bad guys here. An indie label record deal often sees the artist make approximately 25% of retail price for every album sold. But who has the ability to put it into the store? Who invested money in marketing and manufacture? There are so many important investments along the chain. Every single one of those investments is imperative to getting the music out into the world.

Do you see it as a positive or negative thing for artists?

I still think that this culture of taking and consuming without recognition for the artist is not a good thing, but we're not naive enough to think that the proliferation of file sharing is 100% bad. There's certainly benefits for artists in that P2P sharing is the cheapest form of distribution and it allows potential audiences to take risks with your music. But again, permission is the key word.

Also, we know that the live music industry is booming, which is at least partly attributable to illegal downloading. The problem is that not every artist plays live music. What about producers? What about the support industries around recording? 

The long term view is that if we don't have a sustainable "recording" industry, then music of a high quality simply won't get released as much because it rarely pays back its investment. If that happens then audiences and live music may dwindle, and the whole industry could suffer. 

What - if anything - should we do to combat this mentality? 

Education and a shit hot business model that no-one has yet put in place. 

We're striving for a business model that encourages the audience to listen to a wide variety of music at an cost that is built into their day to day service provider bills. That will happen. As long as there is enough return on investment for the labels and rights holders then everyone could still be a winner.

Should such acts be accepted as the norm, or should industry bodies and labels continue to push against the tide through lawsuits and fear-mongering? Is there a better way?

It is the norm isn't it? We don't have a choice to accept it as the norm. Doesn't mean it is right, though. My honest belief is that we are going through a necessary process. A process of negotiation between ISPs, rights holders, Government and users. It's a long and frustrating process, but a necessary one to find a solution where everyone can get the music that they want and everyone can get paid. 

Is there a better way? I doubt it, it's a long and protracted negotiation from two or three sides with opposing views. But we will get there.

If the copyright industries just sat down and gave up then there would be no industry left. From an Independent Label perspective, we're not talking about the protection of billion dollar profits here, we're talking about the protection of our mortgages, rent, kids education, jobs and the funds needed to pay for our next album. There's a lot at stake here.

Should the onus be on the artists to try harder for fans' financial support in the face of technological evolution?

I hate the idea that an artist now has to work harder to provide benefit to their fans, otherwise they'll just get stolen them. That said, the greatest benefit of piracy has been the need for artists to think about how they relate to their fans and how they can provide more value to them. This isn't a choice, it's a necessity for survival. You can't be an artist in an ivory tower, you have to generate real relationships with fans in order for them to hand over money. As an artist this is more rewarding and as a fan this is incredibly exciting. 

When we do find an equitable solution to the music industry's financial woes, this principle will remain. The best artists will continue to foster great relationships with fans.

Finally, has piracy helped create a level playing field between the independent music industry and the majors?

Small businesses are more flexible than big business. It's easier for small business to relate to fans, it's easier to provide value, experiment and stay ahead of the game with creativity and resourcefulness. That said, the independent industry doesn't have a financial cushion provided by venture capitalists, or 40 years of super-profits. Major labels can continue losing money and ride out the storm until we start working out how to make a profit from this industry while indies might just have to shut down if they continue to lose money.

Thanks for your time, Nick.

Nick O’Byrne is the General Manager of the Australian Independent Record Labels Association (AIR). It’s AIR’s job to help small music businesses, independent record labels and independent artists run their businesses better. AIR holds the annual Australian Independent Music Awards and publishes the Australian Independent Charts. Prior to his work at AIR he was a part The John Butler Trio’s management team, and co-ordinator of The JB Seed Fund.

Nick started his career as a musician, studying classical music at the VCA and playing rock, hip hop and jazz wherever he could get a gig. These days he spends his down-time in Melbourne playing the vibraphone or locked up in a studio writing and releasing rad electronic pop music. He also releases the odd compilation album and plans pretentious parties for hipsters.

For more info on AIR and Australian independent music, visit http://www.ausindies.com.au/

2010 Nominee Q+A: Space Invadas

| 2010-09-23 12:30 | Written By:

Sydney duo Space InvadasSydney-based duo Space Invadas [pictured right] are nominated for Best Dance / Electronica Album at this year's Jagermeister Independent Music Awards for their debut album, Soul:FiThe music video for their song 'Done It Again' is embedded above.

Ahead of this year's awards night - more details on that at the bottom of this post - we briefly caught up with Katalyst, one half of Space Invadas, to talk independent music.

What's your favourite song of 2010 so far by an Australian artist, Katalyst?

'Sweet Disposition' by The Temper Trap, because we covered it! Haha. [footage of their 'Like A Version' cover for triple j embedded below]

What does being independent mean to you?

It means actually being independent. Not pretending to be because it the cool think to say. We are TRULY independent. I run the label we release on.

What's the biggest challenge you face as an independent musician?

The age of torrent downloads, which kinda makes it hard to make music full time if no one buys it. So I've felt the last two years it has really made it more difficult. They [torrents] are really socially acceptable now.

Conversely, what's the best thing about being independent?

You have total control over all parts of the release. But there's no one to blame if it doesn't go according to plan. Ha!

As a musician, what would you ultimately like to be known and remembered for?

Quality music I guess. Thats all we set out to do. Be true to ourselves and make good music.

Favourite musical moment of 2010 so far?

Playing Splendour In The Grass, because it was our best set of the year so far and the crowd really got into it [live footage of Space Invadas at Splendour embedded below]

What's the best thing about being associated with AIR and the Jagermeister Independent Music Awards?

I guess people noticed your record and recognise you as being independent. I guess its recognition of all the hard work you put in and not just about the size of your budget spend.

Finally, who do you think is going to win your category this year? Who deserves runner-up?

I don't think it will be us cause Im not sure were even in the right category. My money is on the Midnight Juggs. Surely we deserve runner up! Haha.

Thanks for your time, Katalyst! For more info on Space Invadas, visit their MySpace.

The 5th Annual Jagermeister Independent Music Awards are held at The Forum Theatre, Melbourne on Friday October 1st, 2010, featuring live performances from British India, Cloud Control, The Amity Affliction, M-Phazes, Sally Seltmann and Joe Chindamo. Doors open at 8:00pm; tickets are $29+BF and available now via Ticketmaster.

For more info on AIR and Australian independent music, visit http://www.ausindies.com.au/

Piracy and Australian independent music: Q+A with Nick Crocker

| 2010-09-22 16:30 | Written By:

Nick Crocker, co-founder of We Are HuntedJust how is music piracy - wherein consumers download artists' music without paying for it - affecting the Australian independent music industry? It's an important question.

We broached the topic with Nick Crocker [pictured right], co-founder of the real-time online music chart We Are Hunted.

What's your opinion on music piracy, Nick?

It happens a lot and I think even the worst case scenarios don't quite capture just how far the music consuming public has moved away from paid product. It's very hard to police or stop. It's clearly not something that rewards artists or the teams around them, and so at some point, something has to give. I don't know where all this ends up, but I do know that people are consuming more music now than ever before, so there's demand, there's just not a clear way for most artists to turn that demand into something tangible.

Do you see it as a positive or negative thing for artists?

Negative. Definitely. 

What - if anything - should we do to combat this mentality? 

Embrace it. You're in a mad grab for people's attention, so if you have a choice between paid and no attention and free and some, you have to go for free. I think diversifying the products you sell is important, I think understanding what it is your fans want also helps. 

Should such acts be accepted as the norm, or should industry bodies and labels continue to push against the tide through lawsuits and fear-mongering? Is there a better way?

Labels are corporations, they should be maximising value for their shareholders. I don't know if we're there yet, but we have to be close to a point where litigation is working against rather than for major labels. But I understand why they do it. My view is that the ship has sailed and energies are better focussed on what's next, not what was. It may be another decade before the incentives for litigation are so small that it stops, but I think the music industry will move slower than we anticipate. There is still a huge amount of fat in those organisations, especially internationally.

Should the onus be on the artists to try harder for fans' financial support in the face of technological evolution?

Artists should make music. If they are also the management, then yes, they should be connecting directly with fans. But it's a slog, there's no doubt. We are at a weird place where someone will pay $500 for a weekend of live music, but not see enough value in the digital product to pay a few bucks for an album.  

Finally, has piracy helped create a level playing field between the independent music industry and the majors?

No. I think it's smashed everyone.

Thanks for your time, Nick.

Nick Crocker is a Product Manager at Boxee in New York. He remains a Director at Native Digital – a digital agency he founded in 2008, and a strategic consultant to We Are Hunted – a site co-founded with Wotnews.

For more info on AIR and Australian independent music, visit http://www.ausindies.com.au/

Piracy and Australian independent music: Q+A with Sabiene Heindl

| 2010-09-21 17:30 | Written By:

MIPI general manager Sabiene HeindlJust how is music piracy - wherein consumers download artists' music without paying for it - affecting the Australian independent music industry? It's an important question.

We broached the topic with Sabiene Heindl [pictured right], the General Manager of the Sydney-based organisation MIPI - Music Industry Piracy Investigations.

What's your take on music piracy, Sabiene?

Sadly, piracy is devastating the music community. With 95% of music downloads being illegal, artists and songwriters are quite simply not getting paid for their hard work. If artists and songwriters don’t get paid, the music is going to stop. Would you do your job for free?

Do you see it as a positive or negative thing for artists? 

If artists want to give away their music for example as part of some kind of promotion, that’s entirely their decision. The fact is, it should be the artist’s choice as to how their music is distributed – not the end consumer of the music. 

What - if anything - should we do to combat this mentality?

I think people really need to consider the future of music. Many people feel illegal downloads don’t matter because artists because Lady Gaga or Kanye West are millionaires. The reality is that if labels don’t get returns on these bigger acts then they don’t have the money to invest in new talent or smaller/lesser known Australian artists. People need to start thinking about how their lack of financial support for the industry affects everyone in the industry from artists and musicians to songwriters, studio engineers and so on. . 

Should such acts be accepted as the norm, or should industry bodies and labels continue to push against the tide through lawsuits and fear-mongering? Is there a better way? 

I don’t think fear-mongering and lawsuits against individuals will work. People need to be educated and learn that their actions have consequences for the future of music. We’d also like to see Internet Service Providers take a role in helping to educate people and reduce illegal file-sharing in Australia. 

Should the onus be on the artists to try harder for fans' financial support in the face of technological evolution? 

Artists already have a lot on their plate and for many of them they have other jobs to keep them financially afloat. However, it doesn’t hurt to hear from the artist directly on why it’s important that their fans do the right thing and support their music. As an industry, we all have a duty to encourage people to respect creativity. 

Finally, do you think that piracy has helped create a level playing field between the independent music industry and the majors? 

I believe the opposite has happened. Because there is less investment in new talent, music at all levels has been negatively affected. The harsh reality is that independent labels are being hit harder by piracy because they don’t have the big acts to rely upon.

In early 2010, the Finnish independent label Lion Music announced that it would not be signing any new artists, accepting any demos or responding to questions about releasing music. What was the reason for such a drastic move?  Well, despite having a strong catalogue of independent artists, Lion Music stated that it could no longer compete in a market swamped with illegal file sharing. Sadly, it’s no coincidence that the growth of illegal file sharing has closely coincided with the decline in legitimate music sales around the world.

Thanks for your time, Sabiene.

MIPI logo - Music Industry Piracy InvestigationsSabiene Heindl is the General Manager of Music Industry Piracy Investigations (MIPI), the anti-piracy organisation for the Australian music industry representing indie and multinational record labels, songwriters and music publishers. MIPI is involved in civil and criminal rights enforcement, lobbying and education around respect for creativity. Sabiene has a Bachelor of Laws (Hons) and a Bachelor of International Business and was formerly a Senior Associate in the Communications, Media & Technology Group at Allens Arthur Robinson in Sydney. She has also worked at the European Commission on intellectual property and competition law issues.

For more info on AIR and Australian independent music, visit http://www.ausindies.com.au/

Indie Label Profile: Resist Records

| 2010-09-09 09:00 | Written By:

Graham Nixon, founder of Sydney indie label Resist RecordsLet's get to know the Sydney-based independent label Resist Records, whose artists Parkway Drive and 50 Lions are both nominated for the 2010 Jagermeister Independent Music Award for Best Hard Rock or Punk Album ['Sleepwalker'' by Parkway Drive embedded above].

Below is an interview with Resist Records' founder, Graham Nixon [pictured right; photo credit 1ovakynd].

How and why did Resist start, Graham?

The initial idea behind the label was to provide an opportunity for local hardcore and punk bands to release their music. At the time there were very few smaller labels and unless you were a band doing really well, there seemed to be very little opportunity to release anything. We wanted the label to be of high quality with the releases not only being sonically great but also as aesthetically and artistically. At the time we were doing all ages in-stores at the original Resist address and from this we did our first release which was a 7" by Newcastle band FMD.

Who was involved at the beginning?

Scott MacFadyen originally started the Resist store in 1996 and I started helping him out around 1997. The label had its first release in 1998.

What changes have you seen since the label began?

The label itself has grown and has released some great titles. The way we approach every release is very much the same as it always was, it’s just nowadays there is a lot more planning and time put into the releases. Regardless if a title was going to sell 500 or 5000, I try to make sure it has the potential to do the best it can.

What does being independent mean to you?

Being independent we have the opportunity to control what it is we do. I’m not too phased by sales figures and what bands are selling, it’s great when things sell well, however if I’m into the band, I will do the release regardless of what it sells.

What are some of the label's proudest moments and success stories?

Doing the FMD 7" was pretty cool as it was the labels very first release and at that stage we had no idea how many releases the label would end up doing. Also releasing albums by Mindsnare and Toe To Toe has been great as both bands have a great history in Australian Hardcore.

Success stories? Parkway Drive's The DVD went platinum a few months after its release and hopefully their latest album will go gold in the coming months, so those things are always nice. Seeing the band go from playing small rooms to selling out huge rooms has been a crazy ride, but great to see.

Conversely, any artists or investments that didn't take off as you'd hoped?

There has been a few along the way that didn’t go as planed, however it's not as though they were major failures, possibly the expectation was just too high. I always say aim low so you always succeed, so I should stick to that a little more!

What's your definition of a successful indie label? 

Being able to put out releases that you want to, regardless of the sales outcome.

What are some of the values that your label adheres to (or tries to adhere to)?

From the 100+ releases the label has put out, only one or two have been by bands I didn’t actually have a friendship of sorts with prior to releasing the release. I try to work with people I know or bands I like, if I like a band and they are happy for me to do their release, its all systems go. Often you will get a band that you can see is popular and doing well and would sell a lot of records, but if I don’t share the same enthusiasm as most, I'd prefer not to work with the band just for the sake of good sales. I like what I like and work with what I like, if others like it as well, it’s a bonus.

What measurable effect has illegal mp3 downloading/'piracy' had on your business?

It’s definitely getting to a point now where you see an effect of this, and unfortunately there seems to be little you can do about it. I think it has to come back to the person downloading things - in one sense so many bands and labels are putting out garbage releases, I don’t blame people for downloading them just to see if they like the release, however with all the convenience of MP3 players and the like these days, its hard to get someone to get out and buy anything. If bands put out good releases, it sells, so maybe bands should look at what they are doing a little more?

Logo of Sydney indie label Resist RecordsLooking to the future, do you see the role of your label changing at all?

Not at all, we just do what we do and hope people appreciate what it is we do.

Finally, give us a hot tip - which local band are you watching closely?

Canberra's I Exist is a young band I’m really into. They have an album out now, and expect a new album out some time in 2011. 

Thanks for your time, Graham! For the latest on Resist Records, head to their website.

Piracy

Why Do We Care? | 2010-08-22 05:31 | Written By: by Air Charts

Why does Music Matter?

AIR is an organisation that looks after the business interests of hundreds of independent record labels and tens of thousands of independent recording musicians in Australia.

Our members are the risk takers of the music industry. They’re the ones who think that releasing a minimalist 12 minute punk rock single on vinyl with a dance remix on the B-Side is a good idea. They’re the one’s that will find a way to release Black Metal from Tasmania, Drum & Bass from Perth, Indigenous Australian reggae from Tennant Creek, sugar sweet chamber pop from Sydney and post-hardcore from Brisbane to audiences that for some unfathomable reason adore it. We don’t hear them on commercial radio but they are at the heart of our musical niches and sub-cultures, but they are the boundary pushers and shape-shifters of Australia’s musical culture.

It’s AIR’s job to protect and nurture the growth and development of that culture in Australia and that’s why we care about piracy.

I often find myself talking to  fans of music as they try and justify their P2P filesharing habits. They know that music piracy is a bad thing but the victims of the crime are faceless, it’s an activity that can be done in the safety of your own home and in this country it’s more socially acceptable than smoking a cigarette!

“Anyway, it’s just a bunch of four greedy multi-nationals that “missed the boat” when the internet was invented isn’t it? Isn’t it?”

Well no. Over the past 5 years Australia has lost some of its stalwart niche record labels, legendary independent record stores in every city and one of our biggest independent distributors. All were highly profitable businesses in recent memory and all champions of lesser-heard music.

Indie people still have mortgages, rent and bills to pay, kids to feed and business to run. If the financial investment in music stops being returned then we have to shut up shop. People lose jobs and lives are thrown into disarray. When labels and creators have to find other means of making a living, then creativity dries up.

We're not naive enough to think that P2P sharing isn't without it's advantages. It's an amazingly effective distribution method. It's a way that thousands more people are going to hear your music. If you choose to distribute this music then all power to you, but the key word here is "choice". When people steal music online then they're depriving that artist of choice and control of their music.

In the end, for us, piracy is simple. If you've stolen a song then you're not prepared to pay the value of half a cup of coffee for it. You've put your own selfish interests in front of those of the musicians and indie labels that have had a hand in creating it. What you've decided is that your needs are more important than those of others. You ARE stealing and you are contributing to the demise of the perfomers that you love.

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© 2009 Australian Independent Record Labels Association Ltd (AIR)
437 Spencer Street, West Melbourne VIC 3003. To request permission to reprint, publidh or otherwise utilise any AIR chart, please contact AIR. The AIR charts are compiled by AIR from sales ranking supplied by the Australian Recording Industry Association for the period indicated.AIR is a national industry association, proactively serving and representing the interests and development of Australian independent recording labels across Australia and the world. For more info go to www.air.org.au
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