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Continued missed opportunities for SACD & DVD-A... - Page 2

post #31 of 36
6/21/04 at 12:39pm
Quote:
I spoke with David Chesky. He says the big problem with title releases has been the threatening letters from The Harry Fox Agency regarding asking for 2-3x royaltees. This is affecting all of hirez from DVDA to DualDisc to SACD.


Aren't the royalties paid to artists something like 5 cents per tune? So if they simply caved in to Harry's demands, the price would go up a buck?

If so, either pay the man off, or pay him. Either way, get him out of the way.
Reply
post #32 of 36
6/21/04 at 12:39pm
Quote:
I spoke with David Chesky. He says the big problem with title releases has been the threatening letters from The Harry Fox Agency regarding asking for 2-3x royaltees. This is affecting all of hirez from DVDA to DualDisc to SACD.


Aren't the royalties paid to artists something like 5 cents per tune? So if they simply caved in to Harry's demands, the price would go up a buck?

If so, either pay the man off, or pay him. Either way, get him out of the way.
Reply
post #33 of 36
6/21/04 at 1:04pm
Quote:
Aren't the royalties paid to artists something like 5 cents per tune?


The Harry Fox Agency is demanding 3X this or more, which can come to $2+. That changes the economics greatly. Some labels only keep a dollar or two per disc after expenses, for example.

That is why it is such an issue. The labels must get a middle ground because all these music & video formats are converging and under the current rules there would be too much money paid out. They need to generate a profit and have some extra cash flow to support future recording sessions and promotions.

HFA is not doing a service to their clients either. It's better to give up some money to sell the disc in the first place IMHO given the current business climate.
Reply
post #34 of 36
6/21/04 at 1:04pm
Quote:
Aren't the royalties paid to artists something like 5 cents per tune?


The Harry Fox Agency is demanding 3X this or more, which can come to $2+. That changes the economics greatly. Some labels only keep a dollar or two per disc after expenses, for example.

That is why it is such an issue. The labels must get a middle ground because all these music & video formats are converging and under the current rules there would be too much money paid out. They need to generate a profit and have some extra cash flow to support future recording sessions and promotions.

HFA is not doing a service to their clients either. It's better to give up some money to sell the disc in the first place IMHO given the current business climate.
Reply
post #35 of 36
6/21/04 at 2:02pm
It's actually about 7.5 cents a song (with a sliding scale for extra long songs).

7.5 cents ain't what it used to be, and of course rightsholders always want more money after a few years. Don't fool yourself into thinking this is all about charging for each mix/layer on the disc, it's about getting more money for a new format. Just like how we didn't get any Beatles or Beach Boys CDs for four years after CD was introduced...the artists and the publishers wanted higher royalties for CD than vinyl/cassette...which makes sense in many different ways. New formats = new negotiations, this is nothing new because of high-res.

This is all jockeying for some kind of negotiated compromise, that's all. Ultimately we'll probably see something like 10 cents/song for a high-res hybrid, 15 cents if it includes surround. Something in the middle, more than today, but less than triple.
Reply
post #36 of 36
6/21/04 at 2:02pm
It's actually about 7.5 cents a song (with a sliding scale for extra long songs).

7.5 cents ain't what it used to be, and of course rightsholders always want more money after a few years. Don't fool yourself into thinking this is all about charging for each mix/layer on the disc, it's about getting more money for a new format. Just like how we didn't get any Beatles or Beach Boys CDs for four years after CD was introduced...the artists and the publishers wanted higher royalties for CD than vinyl/cassette...which makes sense in many different ways. New formats = new negotiations, this is nothing new because of high-res.

This is all jockeying for some kind of negotiated compromise, that's all. Ultimately we'll probably see something like 10 cents/song for a high-res hybrid, 15 cents if it includes surround. Something in the middle, more than today, but less than triple.
Reply
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