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Music Businesses Media Media (Apple) Sony Apple

Japanese Musicians Defy Sony by Joining iTunes 320

Homework Help writes "Japanese musicians under contract by Sony are defying their contracts by using Apple's iTunes service to deliver songs. Rock Musician Hotoharu Sano points out: 'It is an individual's freedom where that person chooses to listen to music. I want to deliver my music wherever my listeners are.' Sony Music Entertainment and Apple are still locked in talks and no agreement has been reached so far. Apple's offering of its iTunes service at lower cost in Japan is greatly attributed to their success." From the article: " Before iTunes' arrival, Japan's top music download service, which is backed by Sony and includes Sony recording artists, averaged about 450,000 downloads a month. By offering its service for lower prices, Apple is undercutting such online music services. Japanese are accustomed to paying twice as much as Apple is charging in Japan, which are still higher than the 99 cents charged in the U.S."
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Japanese Musicians Defy Sony by Joining iTunes

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  • Artist's Rights (Score:1, Insightful)

    by dthrall ( 894750 ) on Thursday August 11, 2005 @10:28AM (#13294332)
    Its about time artists started to stand up to the recording industry for their rights. Now, if only the artists received fair compensations from the sales of their music.
  • by kinglink ( 195330 ) on Thursday August 11, 2005 @10:31AM (#13294371)
    Everything is more expensive in Japan, even Videos and Cds, but it's nice to see Apple realizes it doesn't have to be that much more, and is showing it by undercutting the cost of the service.

    It's the freaking internet, all they pay for is bandwidth and the music. Good to see that some companies remember that and are trying to avoid gouging. I just hope apple continues that path.
  • Wrong! (Score:5, Insightful)

    by gowen ( 141411 ) <gwowen@gmail.com> on Thursday August 11, 2005 @10:32AM (#13294374) Homepage Journal
    'It is an individual's freedom where that person chooses to listen to music. I want to deliver my music wherever my listeners are,'
    Yes, it is, initially.

    But you sold away that right in exchange from a large advance from Sony. You can't have it both ways. You can have your freedom or you can take the corporate dollar.

    When you sup with the devil, use a long spoon.
  • Re:Artist's Rights (Score:4, Insightful)

    by Threni ( 635302 ) on Thursday August 11, 2005 @10:33AM (#13294385)
    We've been through all this, as has George Michael and The Artist Formerly Known As Ponce. If you sign an exclusivity deal, then you can't generally distribute your music elsewhere. That's sort of the point, otherwise why would Sony sign someone up? People are free to not sign to Sony etc, but then they won't make very much money. You can't have it both ways - it's artistic integrity or money.
  • by goldspider ( 445116 ) on Thursday August 11, 2005 @10:34AM (#13294394) Homepage
    What is it these days??

    People sign things like NDAs, record deals, and professional sports contracts, and then expect us to be sympathetic when they decide not to honor their agreements?

    Want your music to be free (speech)? Great! Then don't sign a contract with a major label! It's that simple!
  • Re:Contract (Score:2, Insightful)

    by SeekerDarksteel ( 896422 ) on Thursday August 11, 2005 @10:37AM (#13294418)
    It would depend on each individual contract as well as the songs that they are putting up on iTunes. One article I read seemed to imply that the Sony artists were putting up songs on iTunes that were not from Sony records, but some may be, and that Sony was planning on breaking off their relations with artists who put songs on iTunes. It seemed to imply that what the artists are doing is not technically in violation of their contracts, but Sony sure as hell wasn't happy about it. Ultimately it'll probably come down to a case by case basis for each artist.
  • Re:Artist's Rights (Score:3, Insightful)

    by dthrall ( 894750 ) on Thursday August 11, 2005 @10:39AM (#13294432)
    I agree that they may not have the legal ground to take these actions, but I acknowledge this as a sign that artists aren't going to sit by the side and be docile. Artists need to take back some of their power.

    It would be best through legal means, but its still a great sign.
  • by Doc Ruby ( 173196 ) on Thursday August 11, 2005 @10:40AM (#13294438) Homepage Journal
    How long before the record companies realize they've just lost to Apple their most important asset: the direct relationship with the customer? They've monopolized that position, between artist and audience, for a century, which is where they get all their power and money. Now that Apple has judoed (judone?) them to the mat, will they start to fight really dirty? Probably against the only thing they still have control over: us, the people in the audience.
  • Re:Artist's Rights (Score:4, Insightful)

    by frodo from middle ea ( 602941 ) on Thursday August 11, 2005 @10:40AM (#13294444) Homepage
    Umm, that's why you have contracts, where you the artist sign away most of your so called rights.

    There are some basic human rights that you can't just sign away, atleast a sensible court will overturn them, but this right is definitely not one of them.

    When you sign that multi-million dollar deal with the recording company for them to push and market your talentless crap, you can't then just turn around and say "I have rights".

    Sony should sew this person for gazillions of dollars. Look at the brighter side, may be this will make future wannabe musicians think twice before they sign such deals, and then maybe just maybe the recording industry will give us a break from shitty tasteless crap called (pop/rap/punk/rock) music.

  • by garcia ( 6573 ) * on Thursday August 11, 2005 @10:40AM (#13294447)
    People sign things like NDAs, record deals, and professional sports contracts, and then expect us to be sympathetic when they decide not to honor their agreements?

    I'm not sympathetic at all but I'm all for artists standing up to the oppressive recording conglomorates. If this is the only way that they can get extreme exposure, fair compensation, and more rights then I'm all for it.

    The only way the industry will change is with revolution.
  • by justforaday ( 560408 ) on Thursday August 11, 2005 @10:41AM (#13294451)
    They should be able to put their music everywhere and anywhere - isn't that why they signed on with a label in the first place?

    No, they signed with Sony so their music could go anywhere and everywhere Sony decides it should go. If they wanted to retain that right, they shouldn't have signed with them. I'm always amazed that so many people can't seem to make this connection.
  • Re:Contract (Score:4, Insightful)

    by Dachannien ( 617929 ) on Thursday August 11, 2005 @10:43AM (#13294470)
    Presumably, if the artist didn't hold the copyright on the music, they would be unable to grant Apple a license to sell the music on iTMS, and Apple wouldn't start selling the music in the first place. The implication is that Apple is selling their music, which means that while Sony has some sort of exclusivity agreement with the artist, they don't hold the copyright on the music itself.

    In the US, this wouldn't fly. Apple would be opening themselves up to a slam-dunk lawsuit for contract interference. Maybe contract law is different in Japan, though.

  • Did they? (Score:5, Insightful)

    by mcc ( 14761 ) <amcclure@purdue.edu> on Thursday August 11, 2005 @10:46AM (#13294498) Homepage
    But you sold away that right in exchange from a large advance from Sony

    Are you sure? That would depend on the details of their contract and the details of Japanese contract law, wouldn't it? Depending on those details they may well have sold away the right to Sony to distribute their work on CD while retaining some sort of right to independently negotiate sales through other entities on new mediums.

    We don't have copies of their contracts, so we don't know. But something of this sort is clearly the case with Mr. Motoharu Sano who said the thing you quote; otherwise Apple certainly would not have allowed his music onto their store in the first place, as doing so would have been illegal.

    You can't have it both ways. You can have your freedom or you can take the corporate dollar.

    This seems to be the case right now, but only in a practical or logistics sense. Aside from purely practical matters, there seems to be no good reason why this is the case, and so there is no good reason to shrug things off and accept the way things are. Not all evils are necessary.
  • by uqbar ( 102695 ) on Thursday August 11, 2005 @10:48AM (#13294514)
    These days there is very little need for the majors. Everything that musicians need to produce, promote and distribute music is cheap. But the majors have a stranglehold on the media - it's far harder to get mainstream exposure when you aren't playing the payola game (e.g. Sony [mtv.com]).

    Still unless musicians stand up to the majors and say no to crap contracts, and unless fans start supporting musicians that go the tougher indy route (by not stealing their music when they should be buying), things will move slowly, if at all.

  • by Infonaut ( 96956 ) <infonaut@gmail.com> on Thursday August 11, 2005 @10:53AM (#13294552) Homepage Journal
    People sign things like NDAs, record deals, and professional sports contracts, and then expect us to be sympathetic when they decide not to honor their agreements?

    In business the breaking of contracts happens all the time. Those who break their bargains know that they're breaking contract, but the value of breaking the contract is higher than the value of keeping one that is too restrictive or favors the other party.

    The consequences are usually spelled out in the contract, so contract-breakers are essentially making a cost-benefit assessment and acting accordingly. You can call it a moral issue, but in American law no moral judgement or determination of guilt is made.

    Contracts and the breaking of them has been going on for a long time. I think we just hear more about it these days. As for being sympathetic to those who break their contracts, that's another story. When some rich athlete whines about a bad contract, he's certainly not getting my sympathy.

  • Re:Artist's Rights (Score:4, Insightful)

    by Threni ( 635302 ) on Thursday August 11, 2005 @11:03AM (#13294616)
    It's not illegal to do what they're doing - they're just opening themselves up to Sony taking advantage of possibly punitive breach of contract remedies. It would have been better for the artistes to have read their contracts before signing them. You don't get a job somewhere then spend all your time in an internet chat room, and claim that `it's not fair that you don't have any time during the day to do what you want` and `it's time we took a stand against companies who think they can tell you what to do on company time`.
  • by HangingChad ( 677530 ) on Thursday August 11, 2005 @11:06AM (#13294637) Homepage
    The margin they make on music sales is, by and large, dictated by the record labels. But when Apple deals directly with the artist they have the opportunity to formulate a split that more fairly compensates both parties.

    I doubt it adds up to much right now, but I see the day when places like iTunes are the music distribution channels of the very near future.

  • by mcc ( 14761 ) <amcclure@purdue.edu> on Thursday August 11, 2005 @11:13AM (#13294704) Homepage
    I am flatly flabbergasted at the number of people in these article comments who are expressing the observation that if you want to sell your music commercially you must give up your "rights"/"free speech"/whatever, and don't seem to see anything wrong with this situation.

    Just because this is the system the Good Lord Capitalism has handed down to us doesn't mean that it is a good system. These people didn't sign these contracts by choice, they signed it because cartels are by and large holding the world's music industries hostage and these cartels use their influence to force people to choose between giving up their artistic work to others and not being able to make artistic work at all. Not much of a choice at all, that.

    If we lived in an actually free market artists (or artists less rich than David Bowie anyway) would have choices, they'd be able to negotiate terms or obtain a distribution contract acceptable to them, rather than dictated by a record label. We don't. We live in a market dictated by the wielders of monopoly power.

    And don't try to claim they could go to independent record labels. I listen to practically nothing but independent music, I've done work in/with self-published music, and I know some independently-signed musicians. Independent music is a ghetto. It is something you do because you love the art and you love what you are doing. It is not really something you can turn into a career.
  • by Gruneun ( 261463 ) on Thursday August 11, 2005 @11:21AM (#13294766)
    1. Sign a contract with Company A to create products
    2. Take money from Company A to create products
    3. Sell products through Company B for more money

    This is no different than whiny athletes who sign with a sports team and refuse to play until their contract is renegotiated. The amount of gross funds you generate, the fans you gain, and disparity in how profits are distributed are all irrelevant. Everyone was happy when the contract was signed and the only thing that changes are the attitudes of people who incorrectly (and quite arrogantly) see themselves as the sole source of that profit. Take a step back, see who the true money-grubbing whores are, and stop glorifying thieves.
  • by pcidevel ( 207951 ) on Thursday August 11, 2005 @11:22AM (#13294773)
    So Steve did a great job by using the Internet to skip standard distribution channels for music ... Why this didn't work so well for games? http://www.steampowered.com/ [steampowered.com]

    Choose one or more:

    • Because iTunes has an expansive catalog of Music from several artists and various labels. Steam supports only Valve's games, it's not worth the hassle for a catalog of 4 or 5 (or even 10 or 20) games. Call me when I can order ANY game on steam.
    • Because iTunes realized that people would see less value in a "digital" only copy of the music, and thus charged significantly less for the digital music than you would normally pay for a CD in the store. Valve charges (practically) the same price for a digital only game as it does for a game with a box, permanent CD, and a printed manual. Stupid.
    • iTunes works, period. Steam was buggy and painful at release.
    • Songs require significantly less bandwidth than games. iTunes has instant gratification for people with broadband. I can order a song on iTunes and listen to it in a minute or two. Steam on the other hand is unusable by those without Broadband and is still pretty slow for those of us with fat pipes.
    • Even if not a single one of the items above is true, the market perception is that every item above is true. Thus Valve was unable to overcome the market perception of an inferior product for the same price. Apple on the other hand was able to defeat this market perception. Don't tell me "it's not fair", because it's Valves's job to overcome these perceptions if they want to succeed, they did not.

    I'm sure that if I had more than 5 minutes to post, I could easily have come up with twice that many items, but it should at least give you an idea.

    Notice that other game developers have used internet distribution and overcome these obstacles, but they also realized that digital only content has less intrinsic value and more difficulty for the end user than real content that one can purchase from a brick and mortar store, thus they charged less for their digital only games.

    Basically Valve said to their customers: "We would like for you, the customer, to take the burdens of distribution on yourself, have a lower quality gameplay experience, have a lower quality distribution medium, and we would like for you to do it with no tangible benefit for yourself. Ohh btw, thanks for saving us all kinds of cash in distribution, we think u r so h0t!" The customers replied: "Uhh WTF?!" I'm a pathetic lefty liberal hippy that doesn't believe in the crazy Libertarian/Republican propaganda that the "free market" always triumphs, but this is a clear case where the free market kicked Valve's ass, and rightfully so..

  • How it should be (Score:3, Insightful)

    by Nom du Keyboard ( 633989 ) on Thursday August 11, 2005 @11:41AM (#13294932)
    Japanese musicians under contract by Sony are defying their contracts by using Apple's iTunes service to deliver songs.

    And this is how it should be. Musicians promoting revolution. Clearly the record companies are not looking out for anyone except their own fat bottom lines, and it's about time they take the hit for that. Go for it!

  • by SnowDog74 ( 745848 ) on Thursday August 11, 2005 @11:44AM (#13294972)
    It's RIAA's worst nightmare. Not piracy... but artist independence. The entire reason that RIAA has been resisting internet music distribution since it became a reality in the mid-1990's is precisely because the industry's 50-year old distribution monopoly (Read "This Business of Music" [amazon.com] by Sidney Shemel and M. William Krasilovsky.) is directly threatened on such a wide-open medium with so few barriers to entry.


    The industry cannot compete on the internet effectively, and artists are awakening to the fact that in such a venue, they don't need to become the indentured servants of record companies just to see global distribution. The fact is, if they sell so much as one album on their own, they've made more money than 85 percent of the recording artists signed to major labels alone--who do not sell enough albums to recoup their recording advance.


    Using the royalty computation model explained in "All You Need to Know About the Music Business" [amazon.com] by Don Passman, an industry lawyer and professor, the average mid-level artist has to sell a quarter-million albums just to start seeing a dime of royalties.


    This luring of artists away from their record companies, into direct distribution, and cutting out about 9 or 10 middle-entities along the way, is basically "phase two" of the emergence of internet distribution as the dominant model.


    To make matters more interesting... Think about the implications here... In a world where even an artist selling 500 copies can make a better profit than a Britney Spears should her latest album sell less than enough to cover whatever six or seven figure advance she's been paid, there's going to be a much bigger selection of talented artistry out there... available for mass consumption. One won't have to resort to ridiculous marketing and promotions to make a buck... and that will make it harder for Britney Spears and the like to dominate the scene because they essentially bring nothing to the table


    Record companies with their moronic A&R departments so myopically focused on putting every last ounce of energy into pushing only the biggest international artists stand to lose everything... and their employees along with it (especially the overpaid, underimaginative executives).


    So, if you're still wondering why RIAA spends so much time, effort and money ice-skating uphill... It's because they have everything to lose, anyway. All they can do now is try to postpone the inevitable... and they're failing to do even that. But if they let down, it means they're going to have to get off their asses and find real jobs.

  • Comment removed (Score:3, Insightful)

    by account_deleted ( 4530225 ) on Thursday August 11, 2005 @11:49AM (#13295028)
    Comment removed based on user account deletion
  • by Nom du Keyboard ( 633989 ) on Thursday August 11, 2005 @12:01PM (#13295143)
    In a world where even an artist selling 500 copies can make a better profit than a Britney Spears should her latest album sell less than enough to cover whatever six or seven figure advance she's been paid,

    An obvious flaw in your argument is that Britney keeps the seven figure advance too. You won't make that much profit on 500 Internet sales.

    But for those of you who aren't Britney (thank God there aren't more of her running around) and will never see such advances, it's a good deal.

  • by Skater ( 41976 ) on Thursday August 11, 2005 @12:05PM (#13295184) Homepage Journal
    While I see your point about the contract, I don't think it's as black-and-white as you've made it out to be. Based on what I've read, if I were a musician, I pretty much have to sign with the major labels to get any air time (and thus royalties) on radio. Sure, I might get a few stations here and there to play my song, but by and large you have to go through an independent promoter, which is expensive, which means signing with a major label.
  • Re:Did they? (Score:2, Insightful)

    by gowen ( 141411 ) <gwowen@gmail.com> on Thursday August 11, 2005 @12:23PM (#13295329) Homepage Journal
    You think even the Businessweek article writer read the contracts in question?
    Do you think this would've made the news unless Sony were mightily pissed, and knew the artists were in breach?

    "Man breaks contract" makes the news.
    "Man exerts rights" doesn't.
  • by Nasarius ( 593729 ) on Thursday August 11, 2005 @12:30PM (#13295430)
    Did you ignore my link to Epitaph? Bad Religion, The Offspring, NOFX, Bouncing Souls, Dropkick Murphys, Rancid, Pennywise, and other non-Epitaph bands like Dead Kenendys, Anti-Flag, Screeching Weasel, and others have undoubtedly been successful. Some of those may not get constant radio play or platinum records, but they don't make the kind of music that fits such levels of "success" either. Indie pop labels are harder to find, but they do exist.
  • by SnowDog74 ( 745848 ) on Thursday August 11, 2005 @02:17PM (#13296677)
    You're correct on your definition of "right of first refusal".

    My comments should have read:

    Because the record label has Right of First Refusal in their contract with the artist, the label has the first opportunity to review and accept or reject the material. Unless and until the material is rejected, the material in question cannot be shopped to other record labels. Furthermore, if it is shopped to other record labels, there may be a clause that requires Label B to pay Label A either a flat fee or a percentage of gross receipts for the distribution rights... and on top of it, the artist still owes Label A the advance unless Label B purchases the loan from Label A, in which case the artist now owes Label B the advance.

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