Tags
4AD, Beggars Group, Clive Gardiner, CMU, Coldplay, conference, Cosmo Lush, Danny Ryan, Ellie Lawson, EMI, FAC, independent, indie, Keith Harris, Kudos Records, major label, Marillion, Mark Kelly, Mark Mulligan, Matador, music, music industry, Music Tank, music week, Nordics, Pink Floyd, record label, Rough Trade, Simon Wheeler, Spotify, Steve Savoca, streaming, Sweden, The XX, We7, XL, Xylo Myloto, youtube
The debate was very lively and it was fantastic to get such an insight from the mixture of people that were included on the panel. It was a shame there was no-one from YouTube or another service on the panel, although SVP of We7, Clive Gardiner, was given some time to provide his feelings on streaming. There was a strong agreement from the label representatives that Spotify, in particular, is a brilliant way to monetize back catalogues, especially of heritage artists.
The commentary from Cosmo Lush, Senior VP Digital Business Development at EMI, was particularly interesting. Lush provided a wholly positive outlook on the growth that EMI’s artists have seen through streaming (Spotify) services. Lush stated that on the whole they have seen a growth in sales, particularly for their larger artists. In general they have found that their revenue is flat, they have not seen the dips which have been suggested, and Lush highlighted Spotify as a way to monetize back catalogue. For Nordic artist’s, ½ of their revenue is from streaming. Lush was questioned as to why Coldplay’s Xylo Myloto did not initially appear on Spotify, but did not enlighten the audience.
One of my highlights on the night were the points made by Simon Wheeler, Strategy Director at Beggars Group. Wheeler gave an open and honest insight on what the labels Beggars encompass (XL, Rough Trade, 4AD, Matador) have seen from streaming. Wheeler appeared wholly positive about its importance, stating that it was a democratic service; giving smaller artists the opportunity to be ‘found’. Although it may be a slow burner for smaller bands/ labels in terms of streams, the repetitive plays do add up. Drawing example to The XX’s debut album, Wheeler spoke of the fact it is still one of their Top 5 streamed albums, so even though it sold physically, it is still earning money in this service. Interestingly Wheeler also stated that 2/5 of their revenue generators are streaming services.
Spotify was definitely the key topic of the night, and it almost felt like Steve Savoca, Head of Content at the service, had a spotlight on him. Savoca pushed the idea that Spotify is a sharing service. He highlighting that service and value (of the music and service ad a whole) encourages people to upgrade to the premium tariff. Essentially agreeing with Wheeler, Savoca stated that the service provides music fans and artists, in particular ‘heritage’ artists, with an opportunity to discover and be discovered. He related the link up between Spotify and Facebook as providing fans with an opportunity to promote artists and ‘vote through clicks’. Savoca also stated that he felt that the service allowed for a lot more up-sell compared to YouTube, highlighting the question of why bands were happy to be on that service but anti-Spotify. It was really interesting to hear the sign-up facts from the Nordics, in particular the fact 50% of the population of Sweden pays for the service. Which maybe something more to do with a National pride for the service than anything else, and definitely not a figure I ever envisage being hit over here or in the US.
The panel was completed by Keith Harris (Music Tank chair), Danny Ryan, Managing Director of Kudos Records, Paul Loasby of One Fifteen Management and Mark Kelly, CEO of the Featured Artists Coalition (FAC) and member of Marillion.
Kelly’s feelings were extremely reflective of an artist who has been burnt by the industry. Kelly strongly highlighted his opinion that ISP’s should be feeding money back into creative industries to make up for the fact they have built a business on other people’s content. He also spoke of how he believes royalty’s should be changed in order for both streaming and physical to be more reflective of each other.
Loasby concentrated his discussion and opinions around his main client Pink Floyd, of whom he manages the licence of half of their content. Similarly, he spoke from a negative point of view, highlighting the lack of respect he sees for the importance of the value of music. Loasby repetitively and obviously showed his distaste for streaming services, both Spotify and YouTube. He stated that from over 14 million streams on Spotify (Pink Floyd), they had only seen a return in the five figure region, which was the prime factor in their content being taken-down. Interestingly he did speak of the amount of investment that Spotify has had and the fact this is not reflected back into the music through royalty payments. Were it to be, he mentioned how this would highlight the value of the music. Much to the shock of the audience, Loasby also stated that as soon as he can all Pink Floyd content will be removed from YouTube!
It did feel slightly naive that panel leader Keith Harris had to try and direct the conversation onto other streaming services throughout the evening. Harris really had to encourage the panel to have a discussion on YouTube! I wonder if this was due to the fact that only Spotify were there. There was a definite confrontation on the panel, from the way that the artists were sat the opposite end to the labels, whether this was intentional I’m not sure but I think there could have been more of a discussion between the two.
The inclusion of Mark Kelly and Paul Loasby on the ‘artist’ side, was also lightly disappointing. They were definitely two people from the same era, both of whom reflected a reminiscent opinion of the industry that used to be. Both seemed anti what the industry has become, and almost against having to grow alongside it. I think it would have been very interesting to have had a young artist/ representative in the panel, someone who is working with the new model industry and the problems/ positives of streaming, for example an artist like Ellie Lawson.
For more info, and to download Mark Mulligan’s keynote powerpoint: http://www.musictank.co.uk/events/streaming
There is more a detailed report from the evening on CMU’s website: http://www.thecmuwebsite.com/article/musictank-streaming-music-debate-many-supporters-some-detractors-and-an-awful-lot-of-unrealised-potential/
