From MTV to YouTube: When the Net Pays Everyone But the Musician

In 1996, taped to the wall of my now defunct record label spinART Records’ 800 square-foot, four-ikea-desk-loaded-with-unsold-CD-and-vinyl office was a $1 check from MTV. I fought hard for that stupid check. MTV wanted to use a song called “Supermerica” by a band called Poole that I released. Usually TV shows pay good money for the use of a song, but not MTV-- they required labels to allow them to use the music for free in their TV shows when you submitted a music video to be considered for programming on their network. I still don’t know why they even bothered saying they would pay a dollar. It really pissed me off. I had fronted money and worked my heart out along with the band to promote, market, manufacture and release their album and along comes a multi-national billion dollar media corporation and demands to be able to use the music for a stinking dollar. I refused to do it. The music had value to me, it was the thing we sold and the thing the band made the majority of their money off of. I could not just give it up for free. But, Harry (lead singer of Poole) convinced me to let MTV have it in anticipation of the promotional value they might get out of it. The show aired, the song appeared in the background for about 30 seconds, the show ended, MTV made money from the advertisers and the song was not mentioned anywhere. This was the way it worked. The labels fed MTV free music and videos and in return hoped to get their videos aired which in turn would drive huge music sales. And MTV made a fortune off the advertising.

And this is more or less why Warner Music recently demanded that all its videos and music be removed from YouTube. Warner previously granted YouTube the legal rights to use its content and YouTube generated a lot of money from it via advertising. Now Warner wants to be paid more by YouTube. If the Google-owned YouTube does not comply, it opens itself up to potentially tens of millions of dollars in copyright infringement fines. Universal did this same thing successfully some time ago.

Corporate greediness. The only way to increase your value is to offer value to others. The internet will crap on corporate america if it doesn't shape up.