AllmanBrothers - Medialoper

According to at least one major label, they are both!! It just depends on whether you’re an artist or a consumer . . .

I know that it’s old news that Cheap Trick and the Allman Brothers are suing Sony over download royalties: a while back, Kassia did an excellent analysis on it.

The other day, however, I came across a posting on P2Pnet.net (love that name!) that discussed this very topic. The posting had an excerpt from an article in the Internationl Herald Tribune that reminded me just how two-faced the record companies really are when it comes to this issue, and why you have to take it with a grain of salt when they say that they’re (all together now) “just trying to protect the artists” with their draconian download restrictions.

Way back in the early eighties, a revolution happened. Giddy with the power of new technology, motion picture studios rushed to release their back catalogs on the new-fangled videocassettes (and some on laser discs, but that’s a story for another day). They knew full well that this was a foolhardy decision, but with dollar signs in their eyes, how could they resist this new revenue stream?

Why foolhardy? Because the existing agreements with talent, from a participations and residuals perspective, didn’t cover this new distribution channel. With residuals, somehow the studios won and were allowed to continue to calculate payments as a percentage of a 20% royalty calculation. As I noted earlier this week, the guilds aren’t likely to take this forever.

Allman-Brothers

Are Downloads Licensed Music or Traditional Record Sales?

This Lawsuit Isn’t Just A Cheap Trick