Mayhem & Chaos Blog

DRM

SoundExchange's real motivations come to light: DRM

Remember me asking why in hell SoundExchange would charge exorbitant web casting rates?

Now we know why: It was a tactic to gain leverage over web casters! The real aim? DRM!

By forcing exorbitant rates on web casters the web casters are on the hook and will want to find some way of relief. The way of relief that SoundExchange is going to offer is to adopt DRM in order to prevent stream ripping. Now it all makes sense!

Ars Technica writes:

Jonathan Potter, executive director of DiMA, said in a statement that SoundExchange is leveraging high royalty rates to push DRM. "DiMA and our members are happy to cooperate on issues of common interest even if outside the scope of the CRB decision, but SoundExchange has demanded enforceable technology mandates that are unreasonable, unworkable, and way off-topic," he said.

And now the name calling starts:

SoundExchange Executive Director John Simson lambasted what he calls the "Digital Media Association's (DiMA) pattern of misinformation, mischaracterization and political maneuvering ,"

The pot calling the kettle black. Die SoundEchange, die! You people make me sick. I hope you're all out of a job sooner than later!

Music industry watch

Matadors Buy Early, Get Now release

While net radio get strangled by the powers-to-be, some records companies are getting smarter about selling music. Joe talks about Matador Records' "Buy early, Get now" promotion for the upcoming New Pornographers release:

If you order a copy of the album for delivery on the release day, they’ll give you a password to stream the album from the Matador site now, along with allowing access to some MP3 B-sides and live tracks. They’re also offering a 4-CD box set, which upon delivery will include one pressed copy of Challengers and 3 screen-printed, sexily packaged CD-Rs, on which the buyer will be instructed to burn various B-sides, live tracks from the tour in support of the new album, tour photos, music videos, and other material released on the password-protected album website after the record comes out. (That’s right, they’ve figured out a way to include tracks from the future in the box set.)

This approach is really clever -- bravo! Let's take a look at why it is so brilliant:

1. You're involving your fans and getting them something special before the CD is released. They are not treating their customers like criminals.
2. Matador Records is capitalizing on the fan's desire to get the record as early as possible and that can be turned into $$$. They are actively working to find new revenue streams. Granted, all this material will show up on P2P networks post-haste, but serious fans will buy early simply to support the band. Matador should do everything in its power to foster fan's support for the band.
3. They are embracing technology! They are streaming the music before the CD is released. Matador is breaking so many rules with this -- but breaking the rules is exactly what you need to do if you care to survive!
4. While I don't know what sort of contracts Matador has, I suspect that if Matador plays its cards right, it can use the money raised from the pre-sales to support the actual roll-out of the CD. I'd be really curious to see how the contracts for this shape up -- how does the artist income change under this new system?

This album release process certainly promises to change the status quo a little bit -- I'd like to see how this goes for the band and the label. And what the fans think of it. Regardless, I am glad that someone is being brave and trying something new. Kudos to Matador!