JPF Home Page Forums General Messages Mentor Questions Forum Newsweek Interview with Michael Laskow

PD,

You're talking about 2 separate models. The "penny" model has nothing to do with downloaded purchased tracks. It never has.

To clarify:

The "Penny" model has to do with paying the owners of a track (i.e. everyone with a financial interest) a penny each time a track is played, either by programming, or by request. This would NOT include "ownership" of the track. If you have it in a portable player, that track would become deactivated when the subcription stopped. The best part of this for our community is that the majority of indie artists own most or ALL of their song rights, (SR copyrights and publishing). That means that for many, they get the entire penny without sharing. For major labels using various contracts and where the are publishers involved, they will all be dividing the pennies. Because of this, how long do you think the "label and publisher" roles will continue to exist? The answer will probably be only to the extent that they invest money into promotion in return for their percentage. This model is posed as one workable theory. It is not a reality.

The single song purchase (i.e. such as iTunes) pays on a different standard and in a different way. Most are 79-99 cents a download, and allow those tracks to be burned to CD's and used like a purchase from a store of a CD (though not completely until it is burned.. iTunes has some convoluted limitations to the number of cpus you can put it on, having to use an iPod with it etc..) But once you get it onto a CD, you can put it back on your computer to use (legally, i.e. not to put into filesharing systems) however you want.

Then there is the subscription models. This model is coming with Virgin Digital (as an on demand feature AND streaming, not just streaming like XM radio), and this model is portable (i.e. you can take it with you on a player that is compatible (which will likely be about anything on the planet other than an iPod)). The Laskow model could be put into place on this type of format, but again, his was a theory and suggestion only and has no connection to what Virgin Digital is doing. When I learn how this model will compensate on demand tracks, I will let everyone know (or if anyone else hears it first).

Finally, there is the streaming model. This is already in place at Radio Free Virgin and XM and many other services. It works the same as terrestrial radio with PRO's paying royalties. There's the issue of adding a performance component to this (which Radio doesn't have to pay) and that is part of what all the hand wringing has been about for a couple years in regard to internet radio. I think much of this is still up in the air, and even if a law/rate is passed, appeals and other factors still muddy it all up. RFV (and I imagine the others) pay the PRO fees for airplay. What I haven't been able to verify from anyone is whether the PRO's actually track Internet Radio Play at all or simply carry over their Radio Surveys from terrestrial. I fear that's what they are currently doing, and hopefully they'll change with the times. Tracking on the net has to be far more accurate than survey's of radio stations.

Brian