A new iTunes streaming service could be a disaster for songwriters

Two rumours in short succession have hinted that the digital music scene is moving firmly away from the buy-to-own (or rather, pay-to-permanently-license-with-terms-just-short-of-ownership) model – of iTunes, the Amazon MP3 Store and Bandcamp – towards the model which services like Spotify and its American competitors Pandora and Rdio use, where users pay a monthly fee for unlimited access to music.

The Telegraph reports that the BBC is considering launching an iPlayer-style service to make its archive available:

The service, dubbed Playlister, will give licence-fee payers free access to hundreds of thousands of music recordings without paying any additional fees.

The BBC has talked about the idea of making its vast archive of music recordings public in the past, but has always run into trouble clearing the rights.

However, it is understood to be in talks with Spotify and similar music services, such as the French-run Deezer and Apple’s iTunes music store in an effort to side-step the problem.

Those services have already signed bulk rights deals with music labels, who opt in because they would prefer to make some money from the online streaming service rather than watch the shift to digital formats obliterate their sales altogether.

Last month, the Wall Street Journal reported that Apple is planning a similar streaming music service:

Apple Inc. is in talks to license music for a custom-radio service similar to the popular one operated by Pandora Media Inc., according to people familiar with the matter, in what would be a bid by the hardware maker to expand its dominance in online music.

Apple’s service would work on its sprawling hardware family, including the iPhone, iPads and Mac computers, and possibly on PCs running Microsoft Corp.’s Windows operating system, according to one of these people. It would not work on smartphones and tablets running Google Inc.’s Android operating system, this person added, highlighting the mounting battle for mobile dominance between the two technology giants.

This second type of service is possible because the licensing required to do it is less like a sale, and more like running a radio station. In the US, for instance, services like Pandora are required to have a cap on how frequently any one user can play any one song, to encourage people to buy songs they particularly want to play.

But as an interesting post at Digital Music News, from attorney Steve Gordon, argues, one of the most important differences between the two types of license is that in the radio-style licenses, songwriters are increasingly struggling to get any payment at all:

If Apple wants to launch their much anticipated, Pandora-like music service, they must negotiate directly with Sony/ATV for public performance rights. That's the word on the street, and if true, a dangerous turn of events. The reason is that until recently, performing rights organizations – ASCAP, BMI and SESAC (the "PROs") – offered blanket licenses on behalf of almost all the publishers, including all the majors. This dramatically changes that, with negative repercussions for songwriters.

In other words, just because you might get your music legally these days, don't think that the creators themselves are out of hot water.

Tim Cook launches new iPods at a press event last month. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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John McDonnell's seminars are restoring Labour's economic credibility

The Shadow Chancellor's embrace of new economics backed by clear plans will see Labour profit at the polls, argues Liam Young.

It’s the economy, stupid. Perhaps ‘it’s the economy that lost Labour the last two elections, stupid’ is more accurate. But I don’t see Bill Clinton winning an election on that one.

Campaign slogan theft aside it is a phrase Labour supporters are all too familiar with. Whatever part of the ‘broad church’ you belong to it is something we are faced with on a regular basis. How can Labour be trusted with the economy after they crashed it into the ground? It is still unpopular to try and reason with people. ‘It was a global crisis’ you say as eyes roll. ‘Gordon Brown actually made things better’ you say as they laugh. It’s not an easy life.

On Saturday, the Labour party took serious steps towards regaining its economic credibility. In January a member of John McDonnell’s economic advisory committee argued that “opposing austerity is not enough”. Writing for the New Statesman, David Blanchflower stated that he would assist the leadership alongside others in putting together “credible economic policies.” We have started to see this plan emerge. Those who accuse the Labour leadership of simply shouting anti-austerity rhetoric have been forced to listen to the economic alternative.

It seems like a good time to have done so. Recent polls suggest that the economy has emerged as the most important issue for the EU referendum with a double-digit lead. Public confidence in the government’s handling of the economy continues to fall. Faith in Cameron and Osborne is heading in the same direction. As public confidence continues to plummet many have questioned whether another crash is close. It is wise of the Labour leadership to offer an alternative vision of the economy at a time in which people are eager to listen to a way by which things may be done better.

Far from rhetoric we were offered clear plans. McDonnell announced on Saturday that he wants councils to offer cheap, local-authority backed mortgages so that first-time buyers may actually have a chance of stepping on the housing ladder. We also heard of a real plan to introduce rent regulations in major cities to ease excessive charges and to offer support to those putting the rent on the overdraft. The plans go much further than the Tory right-to-buy scheme and rather than forcing local authorities to sell off their council housing stock, it will be protected and increased.

It is of course important that the new economics rhetoric is matched with actual policy. But let’s not forget how important the rhetoric actually is. The Tory handling of the economy over the last six years has been dismal. But at the last election they were seen as the safer bet. Ed Miliband failed to convince the British public that his economic plan could lead to growth. The branding of the new economics is simple but effective. It does the job of distancing from the past while also putting a positive spin on what is to come. As long as actual policy continues to flow from this initiative the Labour leadership can be confident of people paying attention. And as economic concerns continue to grow ever more pessimistic the British public will be more likely to hear the Labour party’s alternative plan.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.