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Is There an Upside to Downloading?

Posted By Barry Ritholtz On March 29, 2005 @ 8:55 am In Finance,Music | Comments Disabled

The Grokster case gets heard today in the Supreme Court. One of the tactics the music industry has used is to throw down the plight of the starving working musician. It plays on the emotions, personalizes the impact of piracy, replacing the corporate victim with reconizable face.

Except, of course, that its all a lie. Consider this Congressional testimony:

"Hello, my name is Roger McGuinn. My experience in the music business began in 1960 with my recording of “Tonight In Person” on RCA Records. I played guitar and banjo for the folk group the “Limeliters.” I subsequently recorded two albums with the folk group the “Chad Mitchell Trio.” I toured and recorded with Bobby Darin and was the musical director of Judy Collins’ third album. In each of those situations I was not a royalty artist, but a musician for hire.

My first position as a royalty artist came in 1964 when I signed a recording contract with Columbia Records as the leader of the folk-rock band the “Byrds.” During my tenure with the Byrds I recorded over fifteen albums. In most cases a modest advance against royalties was all the money I received for my participation in these recording projects.

In 1973 my work with the Byrds ended. I embarked on a solo recording career on Columbia Records, and recorded five albums. The only money I’ve received for these albums was the modest advance paid prior to each recording.

In 1977 I recorded three albums for Capitol Records in the group “McGuinn Clark and Hillman.” Even though the song “Don’t You Write Her Off” was a top 40 hit, the only money I received from Capitol Records was in the form of a modest advance.

In 1989 I recorded a solo CD, “Back from Rio”, for Arista Records. This CD sold approximately 500,000 copies worldwide, and aside from a modest advance, I have received no royalties from that project.

The same is true of my 1996 recording of “Live From Mars” for Hollywood Records. In all cases the publicity generated by having recordings available and promoted on radio created an audience for my live performances. My performing work is how I make my living. Even though I’ve recorded over twenty-five records, I cannot support my family on record royalties alone.

In 1994 I began making recordings of traditional folk songs that I’d learned as a young folk singer. I was concerned that these wonderful songs would be lost. The commercial music business hasn’t promoted traditional music for many years. These recording were all available for free download on my website [1] on the Internet.

In 1998 an employee of MP3.com heard the folk recordings that I’d made available at mcguinn.com [1] and invited me to place them on MP3.com [2]. They offered an unheard of, non-exclusive recording contract with a royalty rate of 50% of the gross sales. I was delighted by this youthful and uncommonly fair approach to the recording industry. MP3.com not only allowed me to place these songs on their server, but also offered to make CDs of these songs for sale. They absorbed all the packaging and distribution costs. Not only is MP3.com an on-line record distributor, it is also becoming the new radio of the 21st century!

So far I have made thousands of dollars from the sale of these folk recordings on MP3.com, and I feel privileged to be able to use MP3s and the Internet as a vehicle for my artistic expression. MP3.com has offered me more artistic freedom than any of my previous relationships with mainstream recording companies. I think this avenue of digital music delivery is of great value to young artists, because it’s so difficult for bands to acquire a recording contract. When young bands ask me how to get their music heard, I always recommend MP3.com [2]."

Source:
Before the U.S. Senate Judiciary Committee July 11, 2000 [3]
“The Future of Digital Music:  Is There an Upside to Downloading?”
Statement of Roger McGuinn
Songwriter and Musician (Formerly with The Byrds)
http://www.ibiblio.org/jimmy/mcguinn/Senate.html


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URL to article: http://www.ritholtz.com/blog/2005/03/is-there-an-upside-to-downloading/

URLs in this post:

[1] website: http://www.mcguinn.com

[2] MP3.com: http://www.mp3.com

[3] Before the U.S. Senate Judiciary Committee July 11, 2000 : http://www.ibiblio.org/jimmy/mcguinn/Senate.html

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