The Punk Revolution Is Over

In another era rock, and particularly punk, stood for rebellion, angst, or at least an alternate way of looking at society from outside the commercial mainstream. But the wall between art and commerce has chipped away in recent years, as rock stalwarts (and upstarts) embed their music more and more with brands, campaigns and promotions. It's not "selling out" any more, just business as usual.
When "Lust for Life" stumps for the Carnival Cruise Line we've pretty much accepted that the punk ethos has faded, but the process can now be declared complete: Johnny Rotten is stumping for British butter brand Country Life. Why? "It's about great butter!!!"
http://laughingsquid.com/sex-pistols-john-lydon-stars-in-butter-commercial/

Congress Passes "Webcaster Settlement Act of 2008"

During the same frenzied sessions addressing a potential $700 billion financial bailout package, Congressional leaders have also found time for music, sending the Webcaster Settlement Act of 2008 to President Bush for signature on September 30. Contrary to its title, the measure merely provides the opportunity for settlement, by giving SoundExchange and webcasters authority (until February 15, 2009) to resolve and implement a new Section 114 "webcasting" royalty rate following Congress’ adjournment. On the theory that the parties would not seek authority unless they were prepared to act, there is reason for optimism that this contentious issue can be resolved by the time a new presidential administration changes the terrain once again.

Who Finds Solace in Black Monday?

Few of us can take solace in this Black Monday -- Bear Stearns is history, Lehman Brothers has declared bankruptcy, Merrill Lynch is getting gobbled, and even the goliath AIG has watched its stock go from 70 to 7, as it looks to borrow billions to stay intact.

But those who sit at the top of the remaining major labels can perhaps find respite in these developments: for a few moments anyway, the music industry is no longer the poster child for the demise of a business model built on excess and greed. The investment bankers will remain on the hot seat as the credit crunch eats its victims.

But this is no time to be complacent. The relentless march of the credit crunch also reminds us that the market ultimately has no conscience: if there is no one to save the venerable investment banks and financial institutions who have greased the wheels of our economy for over 150 years, certainly no one will blink an eye when a music label or two -- or three or four -- bites the dust, or "restructures" into a shadow of its former self.

Guy & Glen, Part II

EMI chief Guy Hands must hate Glen Campbell, whose "Meet Glen Campbell" has dropped like a ton of country bricks on the doorstep of your favorite music retailer.

You can just hear them screaming over at Capitol/EMI: "Whose idea was this?!?!? In case no one has noticed, we're getting squashed by a crushing mountain of debt, and the Stones have just split town! How are we supposed to make money on a pile of covers by a has-been of 70s-era countrypolitan schlock?

"How much did we pay this guy? Are they even our songs?! Are we really supposed to spend time and precious money getting "the word" out to the digerati on this crap? Did you actually pay for the "New or Noteworthy" display at Borders?

"How many units has this thing shipped? Is there anything happening on iTunes? You're paying attention to a record that can't crack the top 25 even on the Country chart?!?!?!? Were' not in the nostalgia business!!!!! Dump this like a hot potato and get your butts in gear! Or you're FIRED!!!!!!!"

Guy & Glen: Part I

EMI Chief Guy Hands must love Glen Campbell, whose "Meet Glen Campbell" marks the country legend's return to the Capitol label after many years. No ridiculous advances to pay, no new media wise guys demanding this digital campaign or that, just good ole' Glen playing it straight and true, finding its way onto the featured end caps at music retail, where Glen fans actually pick it up, take it to the counter and pay for it, just like the old days.

And no new songs to push either: "Meet..." is a cover project, with Campbell putting a personal touch on ten songs, including compelling versions of Tom Petty's "Walls" and Billie Joe Armstrong's "Good Riddance (Time of Your Life)". The project is reminiscent of Rick Rubin's work with the late Johnny Cash; it's not acoustic, but it brings an artist back to his own basics (including the swirling string backings) and demonstrates the continuing vitality and chops of a master craftsman.

The record won't change the world (even with a successful cover of U2's "All I Want is You"), but "Meet Glen Campbell" peaked at # 27 on Billboard's Country Album charts, a respectable re-entry for a stalwart of the Countrypolitan 1970s.

Dangers of Direct Webcast Licenses

Nashville attorney Fred Wilhems has launched a blistering attack on Tennessee Senator Bob Corker (R) with respect to his written statement presented to the Senate Judiciary Committee's hearing on "Music and Radio in The 21st Century."

Wilhelms argues that webcasters will ultimately avoid the high statutory webcasting rates set by the Copyright Royalty Board by entering into "direct licenses" with copyright holders (record labels). Under such a license, the broadcaster would agree to pay something less than the statutory rate under Section 114 of the Copyright Act. Labels would be happy with such a deal, "because the money comes straight to them, and doesn’t go to SoundExchange first. Under the Copyright law, they don’t have to split that money with the artists like they do on statutory payments. They can pay the artist whatever the artist contract calls for."

In addition to avoiding or reducing artist payments, Wilhelms says recording artists will suffer from the inevitable failure of smaller, niche-oriented webcasters, who simply cannot afford the rates set by the CRB. With less outlets for niche music, the webcasting landscape would start to look a lot like terrestrial radio -- constricted playlists, and control leverage exerted by the major labels with the lion's share of mainstream content.

Wilhelms' strident tone sometimes overwhelms his message, but in this case he's right on: It doesn't take a jaded industry lawyer to see the plausibility of this scenario, given labels' history of "artist relations."

All of which points up the importance of the manager's amendments offered by Representative Howard Berman (D-Calif.) in connection with H.R. 4789, the House version of the Performance Rights Act, which would extend sound recording performance royalties to traditional, terrestrial broadcasters. The amendments would require that 50% of "direct license fees" be paid to SoundExchange for distribution to recording artists, thus eliminating the direct license loophole.

XM-Sirius Deal Bad for Recording Artists

As reported through the Daily Swarm and Wall Street Journal, the now approved XM-Sirius Satellite Radio merger will likely lead to "a number of programming changes as the companies get rid of redundant programming." It remains to be seen whether such changes will benefit consumers, but recording artists will almost certainly lose royalty revenue from the decreased number of channels offered by a single, combined service.

Unlike terrestrial broadcasters, satellite radio pays recording artists and labels a "public performance royalty" each time a track is broadcast digitally. Less channels means less plays, and less money in the artists' royalty pool.