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	<title>Comments on: That Tiny Sum? It's Your Digital Download Royalties After Packaging and Breakage Costs.</title>
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	<link>http://digitaldaily.allthingsd.com/20090309/that-tiny-sum-its-your-digital-download-royalties-after-packaging-costs-and-breakage/</link>
	<description>by John Paczkowski</description>
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		<title>By: The Good News &#171; The Day of Sharing</title>
		<link>http://digitaldaily.allthingsd.com/20090309/that-tiny-sum-its-your-digital-download-royalties-after-packaging-costs-and-breakage/comment-page-1/#comment-11968</link>
		<dc:creator>The Good News &#171; The Day of Sharing</dc:creator>
		<pubDate>Fri, 14 Aug 2009 22:20:29 +0000</pubDate>
		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=14424#comment-11968</guid>
		<description>[...] a world without record companies. No A&amp;R men, no breakage fees, no payola, no holdbacks, no jive. It isn&#8217;t hard to do. Straight to the consumer. You want [...]</description>
		<content:encoded><![CDATA[<p>[...] a world without record companies. No A&amp;R men, no breakage fees, no payola, no holdbacks, no jive. It isn&#8217;t hard to do. Straight to the consumer. You want [...]</p>
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		<title>By: Jon Healey</title>
		<link>http://digitaldaily.allthingsd.com/20090309/that-tiny-sum-its-your-digital-download-royalties-after-packaging-costs-and-breakage/comment-page-1/#comment-5693</link>
		<dc:creator>Jon Healey</dc:creator>
		<pubDate>Tue, 10 Mar 2009 20:38:31 +0000</pubDate>
		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=14424#comment-5693</guid>
		<description>Not to suggest that the labels treat artists reasonably, but.... isn&#039;t a distribution by any other name still a distribution? I haven&#039;t seen Eminem&#039;s contract, but I suspect that his royalty deal was the same for any format his music was sold in -- vinyl, CD, cassette, whatever. Digital is just another format. AFAIK, the licensing terms in record contracts were meant for a different scenario: deals in which the label sold the distribution (or performance) rights to another entity. Stuff like compilation records, TV commercials and streaming services. The relationship between Universal and Apple, by contrast, strikes me as a standard wholesaler-retailer relationship, similar to the one Universal would have with a Wal-Mart or Best Buy.

Yes, I know -- the costs are different. Artists shouldn&#039;t have breakage charges taken out of their digital royalties. But many of those charges were outdated in the CD era, yet they lingered in the contracts like pieces of gum that you couldn&#039;t scrape off your shoes. Like I said at the beginning, I&#039;m not arguing that the labels are reasonable. I&#039;m just saying that downloadable music sales are much closer conceptually to CD sales than they are to a label&#039;s deals with car manufacturers or movie producers.</description>
		<content:encoded><![CDATA[<p>Not to suggest that the labels treat artists reasonably, but&#8230;. isn&#8217;t a distribution by any other name still a distribution? I haven&#8217;t seen Eminem&#8217;s contract, but I suspect that his royalty deal was the same for any format his music was sold in &#8212; vinyl, CD, cassette, whatever. Digital is just another format. AFAIK, the licensing terms in record contracts were meant for a different scenario: deals in which the label sold the distribution (or performance) rights to another entity. Stuff like compilation records, TV commercials and streaming services. The relationship between Universal and Apple, by contrast, strikes me as a standard wholesaler-retailer relationship, similar to the one Universal would have with a Wal-Mart or Best Buy.</p>
<p>Yes, I know &#8212; the costs are different. Artists shouldn&#8217;t have breakage charges taken out of their digital royalties. But many of those charges were outdated in the CD era, yet they lingered in the contracts like pieces of gum that you couldn&#8217;t scrape off your shoes. Like I said at the beginning, I&#8217;m not arguing that the labels are reasonable. I&#8217;m just saying that downloadable music sales are much closer conceptually to CD sales than they are to a label&#8217;s deals with car manufacturers or movie producers.</p>
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		<title>By: Mitchell F. Senft</title>
		<link>http://digitaldaily.allthingsd.com/20090309/that-tiny-sum-its-your-digital-download-royalties-after-packaging-costs-and-breakage/comment-page-1/#comment-5675</link>
		<dc:creator>Mitchell F. Senft</dc:creator>
		<pubDate>Tue, 10 Mar 2009 08:49:59 +0000</pubDate>
		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=14424#comment-5675</guid>
		<description>First of all, much as the labels may need the gratuitous profit, I&#039;m with Eminem on this.

But if I may digress then work my way back to my point: It amazes me how a mass of journalists reporters and editors -- can fail to determine probably the most important (possible) fact after the verdict: Whether Team Eminem will be making a post-trial motion to toss the verdict (really, it has to be insensible) and/or appeal it. It&#039;s one of these findings, I would think, a jury, not a judge, had to make in the first instance, which doesn&#039;t mean the verdict &quot;has&quot; to be &quot;right&quot;. This shouldn&#039;t be the end of the issues, so to speak, but the beginning of the end. The first battle&#039;s been lost, not the war.

John, you care to provide an update as per the above maybe??</description>
		<content:encoded><![CDATA[<p>First of all, much as the labels may need the gratuitous profit, I&#8217;m with Eminem on this.</p>
<p>But if I may digress then work my way back to my point: It amazes me how a mass of journalists reporters and editors &#8212; can fail to determine probably the most important (possible) fact after the verdict: Whether Team Eminem will be making a post-trial motion to toss the verdict (really, it has to be insensible) and/or appeal it. It&#8217;s one of these findings, I would think, a jury, not a judge, had to make in the first instance, which doesn&#8217;t mean the verdict &#8220;has&#8221; to be &#8220;right&#8221;. This shouldn&#8217;t be the end of the issues, so to speak, but the beginning of the end. The first battle&#8217;s been lost, not the war.</p>
<p>John, you care to provide an update as per the above maybe??</p>
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		<title>By: Mac Beach</title>
		<link>http://digitaldaily.allthingsd.com/20090309/that-tiny-sum-its-your-digital-download-royalties-after-packaging-costs-and-breakage/comment-page-1/#comment-5651</link>
		<dc:creator>Mac Beach</dc:creator>
		<pubDate>Mon, 09 Mar 2009 18:17:16 +0000</pubDate>
		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=14424#comment-5651</guid>
		<description>Haven&#039;t they dismissed the OJ Simpson jury yet?</description>
		<content:encoded><![CDATA[<p>Haven&#8217;t they dismissed the OJ Simpson jury yet?</p>
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		<title>By: alan miles</title>
		<link>http://digitaldaily.allthingsd.com/20090309/that-tiny-sum-its-your-digital-download-royalties-after-packaging-costs-and-breakage/comment-page-1/#comment-5645</link>
		<dc:creator>alan miles</dc:creator>
		<pubDate>Mon, 09 Mar 2009 17:04:35 +0000</pubDate>
		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=14424#comment-5645</guid>
		<description>By focusing on the percentages you miss the bigger picture, which is that digital music brings in just a fraction of the revenues CDs do.

This fraction needs to cover all of the fixed costs a label incurs to find, develop, and market talent.  Only a small number of bands go on to make money for the label and effectively subsidize the whole operation.

While successful bands may resent having to subsidize an operation that brings new music to the marketplace, they also implicitly signed into this system when they themselves were unknown.

I certainly hope a new digital model emerges that not only supports famous existing acts but also breaks new ones.  As much as I love Eminem, I hope there&#039;s newer music to listen to when I&#039;m 80.</description>
		<content:encoded><![CDATA[<p>By focusing on the percentages you miss the bigger picture, which is that digital music brings in just a fraction of the revenues CDs do.</p>
<p>This fraction needs to cover all of the fixed costs a label incurs to find, develop, and market talent.  Only a small number of bands go on to make money for the label and effectively subsidize the whole operation.</p>
<p>While successful bands may resent having to subsidize an operation that brings new music to the marketplace, they also implicitly signed into this system when they themselves were unknown.</p>
<p>I certainly hope a new digital model emerges that not only supports famous existing acts but also breaks new ones.  As much as I love Eminem, I hope there&#8217;s newer music to listen to when I&#8217;m 80.</p>
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		<title>By: That Tiny Sum? It’s Your Digital Download Royalties After Packaging Costs and Breakage [Digital Daily] &#124; heave-ho.org</title>
		<link>http://digitaldaily.allthingsd.com/20090309/that-tiny-sum-its-your-digital-download-royalties-after-packaging-costs-and-breakage/comment-page-1/#comment-5637</link>
		<dc:creator>That Tiny Sum? It’s Your Digital Download Royalties After Packaging Costs and Breakage [Digital Daily] &#124; heave-ho.org</dc:creator>
		<pubDate>Mon, 09 Mar 2009 14:30:43 +0000</pubDate>
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		<description>[...] Read the original:  That Tiny Sum? It’s Your Digital Download Royalties After Packaging Costs and Breakage [Digital Da... [...]</description>
		<content:encoded><![CDATA[<p>[...] Read the original:  That Tiny Sum? It’s Your Digital Download Royalties After Packaging Costs and Breakage [Digital Da... [...]</p>
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