Managers Corner Feb 12

Keith S | February 1, 2012 | 0 Comments

The Manager’s Corner– SOPA

by Chris Daniels

I’ve managed my own band since the 1980s and despite the amazing change in technology, success in the music business is built around four tried and true elements: great music, really hard work, and timing (often mistaken for luck). The other key element is getting the help you need to make that luck happen. These days that help is everywhere. The book I wrote for my UCD class on artist management is called “DIY: You’re Not in it Alone” and that is exactly what you need to understand.

The big buzz around the music business concerns a proposed bill in Congress called SOPA (Stop Online Piracy Act). But as of this writing it looks like the bill is going to go through a considerable rewrite, and or a review, of an alternate set of proposals that might help resolve the bills problems, but not the controversy. The short version of the issues being reviewed, are the possible ‘overreach’ that the bill might unintentionally cause with massive sites like Wikipedia and others–whose sites contain links to copyright-infringed material.

OK, that doesn’t sound that hard to fix, right? The “safe harbor” principle that exists in current Digital Copyright law could be extended to SOPA, right? Well, I wish that were the case, but the reality is, according to Lateef Mtima from Howard University School of Law, unintentional infringers could potentially be held criminally liable. “Perhaps the most dangerous aspect of the bill is that the conduct it would criminalize is so poorly defined. While on its face the bill seems to attempt to distinguish between commercial and non-commercial conduct, purportedly criminalizing the former and permitting the latter, in actuality the bill not only fails to accomplish this but, because of its lack of concrete definitions, it potentially criminalizes conduct that is currently permitted under the law.” (Jack Minor, November 18, 2011. Greely Gazette)

What about our little patch, the music business? I teach at the University of Colorado Denver and I routinely ask my students, “Do you illegally download music?” The answer is mixed, some do and some don’t. But the argument that is made by those who do, is that (1) it’s easier, (2) there’s more music there, and (3) by doing it, the student ‘spreads the word’ about some great new band and that is great for music and the music business. Hmmmmm?

So here is a reality check for our little corner of the digital piracy problem. Since 2004, all digital downloads have increased 1000% and the revenue coming in from those downloads has dropped 31%. A research paper by the folks at Big Champagne and the UK’s MCPS-PRS royalty collector found that “2.3 million people chose to download the album from sites such as BitTorrent rather than Inrainbows.com site” where they could get it for free

So in our little patch, the fact is that people who do not pay something, even a tiny Spotify streaming fee, are cutting into your DIY revenue stream. So what are ya gonna do?

Deal with it! Let’s face it; you are not going to be able to influence Congress to make this bill work right for the up-and-coming young songwriter. As muddle-headed as the rationale is for stealing music, the fact is, the Internet ‘natives’ are unlikely to change. So you are going to have to find ways to add new sources to your revenue streams that make up for the money young acts used to get selling CDs at gigs and on consignment at great stores like Twist & Shout and Albums on The Hill. Unlike the ‘major acts’ that can make their money getting 95% of the ticket revenue from a concert at the Pepsi Center (after expenses) ‘baby bands’ are playing for between $50 and $700 at Herman’s Hideaway and Larimer Lounge with three other bands on the bill. So you are really going to have to be smart in planning out how to make the most of your music’s potential for revenue…assuming that is what you want to do.

In the coming months, the Manager’s Corner will focus on as many of these avenues as possible including publishing, merch, kick start and other funding opportunities, touring and busking, playing ‘covers’ and a number of other ways to increase your revenue streams.

My own belief is that things like SOPA need not distract us. Deal with what is in front of us. We are at a good turning point if musicians, and the managers and agents who represent them, learn to think creatively about getting the most for the ‘content’ they create. And for the artists, now is the time to become the very best you have ever been. The competition is fierce; you have to be that much better than everybody else, and have business smarts at the same time. ‘Too much’ you say? Naw, I don’t think so. Look at the music coming out of Colorado right now. It’s some of the best in the country!

Tags: Chris Daniels, sopa