Why MegaUpload was really shut down...

Yeah, good luck finding enough music which has the demand large enough to drive traffic in large enough quantities in order for the service Kim provides to be able to sustain itself.

Go ahead, search. Prove me wrong. Please......

Proof? Easy.

CDBaby ... They only pay $40 million + EACH year to unsigned artists.

I think (no troll) that that is more than ample proof the model can (and actually does) work. Sure, it's not Sony, BMI money, but it does pay the bills for some independent musicians.

Another thing. As long as there are hipsters, there will be an idiotically high demand for Indie Tracks (good and bad).

[Apologies for the link - post count is too anemic]
prnewswire c-0-m_news-releases_cd-baby-surpasses-200-million-in-royalties-paid-to-independent-musicians-133867178
 
Yeah, good luck finding enough music which has the demand large enough to drive traffic in large enough quantities in order for the service Kim provides to be able to sustain itself.

Go ahead, search. Prove me wrong. Please......

Proof? Easy.

CDBaby ... They only pay $40 million + EACH year to unsigned artists.

I think (no troll) that that is more than ample proof the model can (and actually does) work. Sure, it's not Sony, BMI money, but it does pay the bills for some independent musicians.

Another thing. As long as there are hipsters, there will be an idiotically high demand for Indie Tracks (good and bad).

[Apologies for the link - post count is too anemic]
prnewswire c-0-m_news-releases_cd-baby-surpasses-200-million-in-royalties-paid-to-independent-musicians-133867178
 
Good share! Thats some true shyit right there. Dont let anyone tell you otherwise :)
 
Proof? Easy.

CDBaby ... They only pay $40 million + EACH year to unsigned artists.

I think (no troll) that that is more than ample proof the model can (and actually does) work. Sure, it's not Sony, BMI money, but it does pay the bills for some independent musicians.

Another thing. As long as there are hipsters, there will be an idiotically high demand for Indie Tracks (good and bad).

[Apologies for the link - post count is too anemic]
prnewswire c-0-m_news-releases_cd-baby-surpasses-200-million-in-royalties-paid-to-independent-musicians-133867178

http://www.prnewswire.com/news-rele...-paid-to-independent-musicians-133867178.html
 
403790_352402311455702_341913269171273_1282613_1472402749_n.jpg
 
@novel

1.He hasn't even been on trial yet
2.He is facing multiple charges including money laundering.The more charges,the more time in prison you can get if convicted.
 
@GB5000: You think inside the box in this thread. You take the current rules as given and assume, there's no way around them. You may know your share about the current mechanics of the music industry, but to overcome this system, we need ideas that don't stop at the current limits. If Kim was willing to pump money into this, I think he could have had a real chance. I myself bought several times on bandcamp. Stuff that you cannot buy in an offline store (or even not in most online stores). If there was an even bigger platform, with most money actually getting to the artists, I would even have the added bonus of feeling good because my money doesn't go directly to some shareholders of UMG. Small artists make their money with tours, not with CDs. And to get albums to the people - how many people do you need for it? Truckdriver? Factory worker? Salespeople? Cashier? Today an automated shop is enough. After setup and maintenance, no people involved for the actual purchase. At that point, artists could get money again for selling albums. If there's a platform for it. I don't know for sure, but if I were an old MI dinosaur, this would be a reason to do everything I can to stop it.
Stop thinking crap like 'they won't do that'. People do evil things everyday to earn money and to keep it. Ever had a look at this forum?
 
if you have heard about anonymous...they had an op called#opmegaupload...great way to fund war on the govt
 
Anonymous recently hacked Sony (again) and released all songs, videos, movies ect for free in retaliation. I don't want to paste the link here, but look it up on Youtube or Google. Pretty funny.
 
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CDBABY royalty pay out is ~ $40,000,000/year but they have 200,000 artists,which they pay out 91% royalty rate to. That means the site is only getting ~$3.9 million a year from the music.

Indie is great if your doing music as a hobby,but if you want to make lots of money your going to have to get signed by a major label.
 
Dear gb5000,

I didn't read all of the thread and I need to sign off for a bit soon. I thought I would get this in before signing off, because it needs to be said.

This Kim Dotcom (that I just recently learned of) is not an idiot. You may be involved in the music industry, but Kim has the money to buy the knowledge you have and much much more.

Do you think someone with his financial background actually wasn't capable of financing research into his idea to see if it was workable? I mean seriously.. Have you actually read about how much money he has?

Believe me, I am sure he is aware of what you have mentioned in this thread and has obviously countered anything you may have touched on - as otherwise the artists would not have been supporting him as much as they were/are.

So while I respect you are in the music industry and know more than me about it, I would appreciate it if you also had some respect for people who obviously are switched on (Kim) because your assumptive statements and arguements in this thread sound silly. The guy is not an idiot.
 
My My, am I the popular one here!

OK, lets get it on then!

I am a second gen musician. I have owned a home project studio close to 20 years now. I have worked along side former staff producers at Motown and been involved in marketing some of my own stuff since 1995.

Nice to see a fellow insider/outsider.

Also, are those staff producers under Motown itself, or its publishing arm (if they even have one)? Motown hasn't had direct staff producers in years..........

Anyway, lets get to it.....

There is nothing they are doing that an artist can not do for them self or outsource and likely do better.

There is evidence to support your statement (cool kids, still independent to this day), but there is also evidence to support my statement (carmin, who jumped ship) that as soon as a Major comes calling for an independent artist, most jump ship over to the Majors to get more recognition for their project. So I'll call a draw on this one.


U got to be kidding me to come on a forum like this and say people here dont know about the music industry

Again, if they never worked for a MAJOR record label/Major Media company, I believe that, as offensive as some of these/you guys might take it, that statement is based on the calculated assessment that most have never seen how it works behind the scenes, and only get there information from news sites/opinion blogs slanted in the favor of their views (hence al the links coming from "tech sites", nice try :rolleyes: ) ...........

vs. actually being in the field and pushing records and breaking artists and making deals and discussing contracts and selling services as a producer or writer or actually being an artist themselves with major success. So yeah, I'll stick by that statement. And, I'll say it again, most guys in here have NEVER worked for a label as far as I know, other then Green Goblin.

Because of that, most of the responders in this thread can only argue from ONE perspective. So most of my words will go over your heads because you can't see the ripple effects of this "revolution music industry" has since your not in this industry to begin with.

I however, have seen what it has done from FIRST HAND EXPERIENCE. Both the good AND bad sides of it.

Its NOT all good guys, their are people in the creative fields hurting (I LIVE IN LA, I SEE AND TALK TO THESE GUYS EVERYDAY, SO I THINK I HAVE A BIT MORE PERSPECTIVE THEN YOU GUYS HAVE ABOUT THIS) because internet bootlegging (which was kept under control when it was only physical cd's being sold) on a MASSIVE scale has hurt the publishing AND sales and JOBS of creative industries over the past DECADE!!

You guys like numbers? LOOK UP THAT STATISTIC!!!

Anyway.......

Proof? Easy.

CDBaby ... They only pay $40 million + EACH year to unsigned artists.

I think (no troll) that that is more than ample proof the model can (and actually does) work. Sure, it's not Sony, BMI money, but it does pay the bills for some independent musicians.

Another thing. As long as there are hipsters, there will be an idiotically high demand for Indie Tracks (good and bad).

[Apologies for the link - post count is too anemic]
prnewswire c-0-m_news-releases_cd-baby-surpasses-200-million-in-royalties-paid-to-independent-musicians-133867178

LOL, thats a CD baby marketing stunt.

200,000 artist splitting up 40 mil a year comes to about 200 dollars PER ARTIST!!

Lets assume that 1000 of those artist make up about 90% of the money being made, thats about 36k per artist........

Now, lets take ONE major music company's profit margins, say, universal music....

From just their Itunes sales alone, they brought in close to 2 billion sales, THROUGH ITUNES ALONE....

Universal has roughly about 200 artist on their roster, which, divided up, would give each artist OVER atleast 2 to 3 million in profit (I shaved off alot of that profit for universals take of that pie, but without universals take, the figure come to about 10 mill PER ARTIST!)

That money made by universal goes back into signing other talented artist WITH DEMAND and reinvested to bring you guys even more entertainment.

CDbaby does NOT reinvest the money made into discovering and developing other artist.
So its main concern is mostly profit, regardless of who it helps distributes.

Now, if I'm an independent artist and I have the choice of selling my music by myself or having an established company do it for me, which one, based on the numbers above, would you think I would choose?

BTW, remember that is from Itunes ALONE.....I haven't even factored in the profit from traditional CD sales, nor other digital outlets like Amazon or its publishing departments.

So yeah, you were saying :rolleyes:

There are 3 major labels now when I started there were 7

Umm, yeah dude, because profits disappeared AFTER naspter and pirate bay and megauplaod started distributing paid content for FREE. Its in industry based on selling content, what do you think was gonna happen?

What would happen if CPA companies started not paying their affiliates for leads?

What happens if all leads become FREE?

Same concept, different industry!

And its not about your opinion on how the music sounds, some people love things other people can't stand, that has been true since the test of time. So you can't use that argument.

Listen revenue sharing is nothing new I am sure Kim could have done that. Who pays for this inefficiency so far? The consumer and the artists. Now that margins are tight and money is drying up fingers are pointed at megaupload etc. Give me a break all that needs to happen is to trim the fat off your business and create a QUALITY product people are willing to purchase at a fair price and they will. No one will be out of any money it will just be redistributed more fairly. I wish someone could start addressing the real issues and get some REAL MARKETERS involved in music again because that is what it needs.

There you go again with that quality product BS. Look, what I like may not be what you like, and visa versa. But as long as I buy and support that artist with my time, money, and attention in someway shape of form, it will live on regardless of what you think.

This has NOTHING to do with the quality of music. Again, when you give a product that once had a price tag on it away for FREE (which is what Megaupload was doing KNOWINGLY as per the email messages they sent to there buddies), it will kill ANY business.

Your ISP doesn't give you free internet, does it? Unless your in startbucks or the library, you have to pay for that shit. Thats how ISP's DESPITE having libraries and starbucks giving away internet for a limited number of hours in the day stay in business. Common Sense, right?


97% of the guys signed to a major end up none recouped: This means that the morons at major labels never even make back the money they advance to 97% of the "artist" they sign

not every investment made in business becomes a success. Thats common business sense.

Also, did you forget to mention that the top 5% of artist who the record industry profits off (and who successfully recoup their advance) makes up for those who do not pull in a profit?

Which therefore is REINVESTED (there is that word again) into newer artists to give them a shot at making more money for themselves AND the company in order to start the process all over again?

You forgot that one, huh?

1. Stop PD from taking money to play only major label releases

Even IF they do that (and they have), it will still end up being the run the same way its run today, or yesterday, or in motowns "heyday", without the blatant payola.

Also,Have you tried being a Radio PD? Try having every unknown artist in town pitching to get himself to get on radio just because "I have talent, so therefore you should put me on." They get hundreds of requests like this every week, so eventually, some sort of barrier would have to be put into place. Otherwise, if you appease one, you would have to appease them all, as everyone who does music (most anyway) think they are the next Justin B.

plus, lets not forget that music is NOT radios primary business. All you have to do is follow the money to find this out. Radio dosen't give a FUCK what music it plays. What it does care about, however, is those advertisers who want to have that popular rhianna song playing right before you display their commercial. Because advertisers pay the bills, so radio has to listen to what they say. Otherwise, radio would go out of business.

You should know that...........

2. Stop A&R from serving as managers + publishers and just swapping their personal projects with an A&R from another label

This is one thing I can agree with you on, as that still goes on today.

3. Stop using autotune in every f'n song. You can not break new artists that sound like the last 10

Again, YOUR OPINON.

4. Go find some real writers who can cover diverse topics and styles and or find multi talented ARTISTS and not autotuned models and reality show has beens.

Again, YOUR OPINON!

I know some professional writers who have hits out NOW with top 10 artists you can't get away from if you turn on your local pop station radio who would LOVE to write from the heart and put out your so called "REAL MUSIC".

The problem? Demand. Unless a mass shift in demand takes place (and by demand I mean artist who music people are actually paying for), its not gonna happen.

And again, each demographic has a different demand. So you can't just have a "one size fits all" answer to this.

I will say that the success of Adele is turning that tide however.........

Small artists make their money with tours, not with CDs. And to get albums to the people - how many people do you need for it? Truckdriver? Factory worker? Salespeople? Cashier? Today an automated shop is enough. After setup and maintenance, no people involved for the actual purchase. At that point, artists could get money again for selling albums. If there's a platform for it. I don't know for sure, but if I were an old MI dinosaur, this would be a reason to do everything I can to stop it.

Read what I wrote above for a better understanding of how the system works.

Also, you still need constant promotion and marketing, and again guys, NOT JUST INTERNET PROMOTION either. I've explain why in other posts, so I won't go into it here.

Lord there are a MILLION things they have been doing wrong for the last 30 years at major labels and I don't see how anyone can defend them as a musician or a business man of any sorts. Just the fact that Kim was able to run a site for 7 years before it was taken down speaks volumes to how Pathetic and out of touch they really are at this point.

The fact that kim didn't give a PENNY....

NOT......

ONE....

PENNY....

of revenue that he's earned from using other peoples content to drive traffic and memberships to his site speaks volumes about his character.

I don't care about what he SAID he was going to do, I care about his actions over the past 7 years.

Dude had the site for years without even ONCE (atleast to my knowledge) trying to contact the content creators to discuss payouts. So yeah, based on that, I don't think his intentions are as pure as you guys want to believe.

When he starts making an effort WITHOUT GOVT. INTERVENTION to give back some of that money he's made over the years to artist, designers, writers, movie studios, and the like, then we can talk about what a swell guy he is.

Until then, I'm not buying it.
 
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megaupload was one of my favourite dl sources.....no download speed limit and no captchas....i liked it...
 
Ok gb5000, lets just put an end to this, because your statements are just not backing up your original claim. You originally told us that MegaBox wouldn't be able to succeed because of the numerous lawsuits that would rain down upon them, and basically it had an impossible business model that didn't make sense without the partnership of major music labels.

We disagree. We feel that MegaBox would in no way shape or form risk any lawsuit, and told you that you simply didn't understand MegaBox business model. You chose to ignore those posts, and keep trying to pick on little things that do not matter.

Why don't you tell us, in the most basic form, how you think MegaBox was supposed to work, and what their basic business model was, and then point us to why it would be impossible to succeed, and would face many lawsuits. Then we will correct you.
 
Ok gb5000, lets just put an end to this, because your statements are just not backing up your original claim. You originally told us that MegaBox wouldn't be able to succeed because of the numerous lawsuits that would rain down upon them, and basically it had an impossible business model that didn't make sense without the partnership of major music labels.

We disagree. We feel that MegaBox would in no way shape or form risk any lawsuit, and told you that you simply didn't understand MegaBox business model. You chose to ignore those posts, and keep trying to pick on little things that do not matter.

Why don't you tell us, in the most basic form, how you think MegaBox was supposed to work, and what their basic business model was, and then point us to why it would be impossible to succeed, and would face many lawsuits. Then we will correct you.

Sure!

I'll try keep this short so you don't have to read too much.

Lets say Megaflop wants to allow visitors on their site to download the latest 50 Cent record.

They set up a deal with 50 cent himself to distribute his past catalog (which is still his must popular catalog) to pay him directly and proceeds as follows.

Since Interscope owns the copyright of those said records, as soon as Megaflop starts paying 50 (or even before all this goes down) without consenting or going through Interscope first, the Record Company Interscope and its parent Distributer Universal would proceed to file cases first against
50 for violation of contractual agreements, then file against Megaflop for selling and using content owned by Interscope without proper rights being granted first.

Repeat that scenario for EVERY POPULAR SONG out there, and you have what will be known as MEGAFLOP!!

Now, lets just say that Kim trys to buy rights to sell those records from 50's company BEFORE going directly to 50.

Welp, you have another problem. See, Kim forgot to pay for ALL those years he gave that shit away free FIRST.

So the first thing a company who owns content you gave away for free for YEARS will say is "what about that money you've already made from our content already? We want some of that back FIRST, THEN we'll make a deal!"

Now, THIS will determine if his his Megabox will really be successful or not. Because if he says "well, screw you guys, I'm gonna keep what I already made, I already have that money tied up in my 10 cars and my house renovations (true story)"...

The record company will say "ok then, then your not allowed to let your users download our content".

If he does that anyway, since most of his traffic comes from users downloading that content, off to court he goes!

Repeat this for every SONG/MOVIE he want to allow his site visitors to download.

Not that simple, huh?

OK, your turn.......
 
Lets say Megaflop wants to allow visitors on their site to download the latest 50 Cent record.

They set up a deal with 50 cent himself to distribute his past catalog (which is still his must popular catalog) to pay him directly and proceeds as follows.

Since Interscope owns the copyright of those said records, as soon as Megaflop starts paying 50 (or even before all this goes down) without consenting or going through Interscope first, the Record Company Interscope and its parent Distributer Universal would proceed to file cases first against
50 for violation of contractual agreements, then file against Megaflop for selling and using content owned by Interscope without proper rights being granted first.

Repeat that scenario for EVERY POPULAR SONG out there, and you have what will be known as MEGAFLOP!!

Now, lets just say that Kim trys to buy rights to sell those records from 50's company BEFORE going directly to 50.

Yep, looks like you completely misunderstood how MegaBox was going to work. It is almost insulting that you thought Kim was that stupid to try to sell music belonging to Interscope or whatever and pay 50cent for it.

Did you miss this entire part of the article? Or just not understand what it meant?

You can expect several Megabox announcements next year including exclusive deals with artists who are eager to depart from outdated business models.

MegaBox intended to create ORIGINAL music with artists who signed deals to release music exclusively through MegaBox and/or granted MegaBox full distribution rights to their original music which was entirely owned by them.

Any writing or producing of the music would either be paid for by the artist or MegaBox entirely so that they didn't have any rights or expectation of further money from that piece of work.

If MegaBox had any intentions of allowing users to purchase works of music produced through a major record label, it would be done through already established sources such as Amazon, with MegaBox acting as an affiliate of sorts.

In a test-drive this morning, we also found lots of major label content, but only managed to stream 30-second clips (we'll leave that discussion to the various armies of lawyers...)

Don't take what you see in the screenshots of the site to mean that they were actually hosting, streaming and selling works owned by major record labels. Even the people who actually tested the site, which was complete beta/testing mode, couldn't get it to stream more then a 30-second sample clip of the song.

Hmm, by mere coincidence I am sure, the sites 7digital and Amazon also have 30 second clips of all of the songs they have for sale available to stream by anyone visiting the site.

MegaBox would only pay artists for downloads of songs they have complete rights over, entirely owned by them. The agreement that artists would need to make in order to upload the songs, would mean that MegaBox would only need to worry about simple DMCA requests, and the artist would be legally liable in case of lawsuit.
 
So the artist is going to be spending their money to promote themselves with a CDBABY and MegaBox type business model?
 
So the artist is going to be spending their money to promote themselves with a CDBABY and MegaBox type business model?

We really don't know. The best assumption we can make, is that the majority of artists would have to promote themselves, and rely on word of mouth/viral spreading to make major sales, with Top 10 lists to promote certain artists. Major artists would rely on their popularity + MegaBox would sign special agreements with them to direct extra traffic to their songs and possibly even offer them a guaranteed amount of money in order to sign the BIG names.

Traffic/Visitors/Promotion wasn't anything MegaBox was concerned about. They could just use Megaupload and their other sites to promote Megabox artists.
 
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