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The Rambler by Graham Henderson: In Conversation with Colin James

Graham_headphones3Blog ThumbnailThe Rambler is a column by Graham Henderson, President of Music Canada. Graham writes from time to time about developments in the music industry, new trends or just about music! Let’s face it, Graham has been around for a long time and has a lot to ramble on about.

In my first turn in the interviewer’s chair, I was thrilled to have had the opportunity to talk with Colin James as he celebrates 25 years in the music business. Colin has dedicated his life’s work to exploring rock, blues, and swing music, and he has been a key contributor to Canada’s music scene. He’s a six-time JUNO Award winner and the recipient of seventeen Maple Blues Awards, and was inducted to the Canadian Music Industry Hall of Fame last week during Canadian Music Week.

Special thanks to Jeff Cohen at Collective Concerts for allowing us shoot the video at Lee’s Palace, one of Toronto’s great live music venues.

Graham Henderson is the President of Music Canada. He also writes on an eclectic range of topics on his personal blog at www.grahamhenderson.ca.

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Media Advisory: The Next Big Bang, A New Direction for Music in Canada

Toronto, March 19, 2013: Music Canada President Graham Henderson will release a report presenting five key directions for the Canadian music industry during the State of the Industry address at Canadian Music Week on Thursday, March 21, 2013.

The music industry has undergone massive changes with the shift to digital technologies and platforms; all aspects of the industry have been disrupted. Yet many of the programs and supports designed to support this important cultural and economic sector were designed for the analog era.

With this in mind, Music Canada has, through months of research, interviews and expert submissions, developed seventeen policy recommendations in the following areas: music education, digital innovation, music tourism, export expansion and interconnected tax credits.

The Next Big Bang: A New Direction for Music in Canada
, will be released March 21st during a keynote address.

WHEN: Thursday, March 21, 2013 at Canadian Music Week, State of the Industry
WHO: Graham Henderson, President, Music Canada
WHAT: The Next Big Bang: A New Direction for Music in Canada
WHERE: Toronto Downtown Marriott Eaton Centre, Grand Ballroom C/D

One-on-one interviews can be arranged upon request. Also available for interviews will be the following contributors:

1. Jeff Leiper, Information and Communications Technology Council – Music Education
2. Darlene Tonelli – Digital Innovation
3. Nikki Rowling, Titan Music Group – Music Tourism
4. Peter Lyman, Nordicity – Tax Credits

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Global Forum 2013: Brand Supported Piracy with David Lowery, Chris Ruen, and Chris Castle

Writer and musician David Lowery and Author Chris Ruen do not shy away from identifying major companies that support the pirate sites that damage creators every day by distributing unlicensed copies of music and movies.

On March 22, 2013 at Canadian Music Week’s Global Forum, the pair will discuss brand-sponsored piracy, a practice whereby Fortune 500 companies, whether knowingly or unknowingly, purchase advertising inventory from illegal sites. Advertising revenues keep these sites in business while ad agencies, exchanges and networks also make money in the process. The only ones left without compensation are the artists, songwriters and filmmakers.

David Lowery of the bands Cracker and Camper Van Beethoven, has emerged as one of the strongest artist advocates through his contributions to the blog, The Trichordist. The blog has begun a “name and shame” campaign which identifies major brands that are supporting piracy by placing ads on illegal sites.

Chris Ruen, whose essays and criticism have appeared in The New York Times, Slate, The New York Press and Stereogum, recently published his first book, Freeloading: How Our Insatiable Appetite For Free Content Is Starving Creativity.

First brought to the attention of CMW delegates in 2011 by indie filmmaker Ellen Seidler, brand-sponsored piracy will be discussed during the Global Forum Networking Breakfast, a ticketed event, with moderator Chris Castle. David Lowery and Chris Ruen will be available for one-on-one interviews upon request.

For ticket and registration details, please visit www.cmw.net, or visit the registration office onsite at the Toronto Marriott Downtown Eaton Centre Hotel during posted hours.

The Global Forum is sponsored by Music Canada.

Update: Video from the Global Forum is now available below:

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The Rambler by Graham Henderson: Shining a Light on Brand Supported Piracy

Graham_headphones3Blog ThumbnailThe Rambler is a column by Graham Henderson, President of Music Canada. Graham writes from time to time about developments in the music industry, new trends or just about music! Let’s face it, Graham has been around for a long time and has a lot to ramble on about.

As Rambler readers will know, I have been monitoring Google’s promise to downgrade pirate sites in their search rankings since it was announced last August. I was initially skeptical about Google’s push, but willing to give them credit for this ‘better late than never’ effort. However, I was soon disappointed as my research showed that time and time and time again, licensed music sites and services were buried beneath dozens of links to dodgy sites that exploit artists’ work for financial gains. Unfortunately, Google’s 2010 claim that they would remove piracy related search terms from their Auto-complete feature was also exposed as bunk.

My findings were backed up today as the RIAA released their Google Report Card, a new document that shows how ineffective Google’s change was. The takeaway is clear: “Six months later, we have found no evidence that Google’s policy has had a demonstrable impact on demoting sites with large amounts of piracy. These sites consistently appear at the top of Google’s search results for popular songs or artists.”

Since Google’s pledge to downgrade pirate sites in their search rankings has been shown to be a complete farce, you’ll have to forgive me for taking their latest announcement with a handful of salt. According to the sparse details in the Telegraph, the Palo Alto search giant will now look to cut off financial payments to illegal download sites. Ellen Seidler, the independent filmmaker who became a reluctant advocate in the fight against piracy after finding her film hosted on thousands of illegal sites funded by advertising, has also announced her skepticism about Google’s latest move, asking “how much is just PR posturing versus real action?” Seidler’s blog, Pop-Up Pirates, has been documenting examples of brand supported for nearly three years.

Of course, there is a reason that these pirate sites are created: they make money from the advertisements. As Seidler said at Canadian Music Week’s Global Forum in 2011, “Online piracy isn’t about altruism, it’s about income.” Seidler’s presentation thoroughly explained how “legit” companies (such as ad service providers, advertisers, and payment processors) encourage and facilitate this theft while profiting from it. You can see video from her presentation on her Vimeo page.

Some of the screenshots below provide an example of how major brands are encouraging mass piracy by financing sites with their advertising dollars:

Here, Bell is supporting the exploitation of The Dears by placing an ad next to pirated copies of their album on 4Shared, a site that has received hundreds of thousands of copyright removal requests in the past month.

Bell - TheDears - 4Shared

Here, Lysol buys advertising on a page illegally distributing Drake’s Grammy award winning album ‘Take Care’:

Drake - Lysol - SongsloverIn this screenshot, the History Network funds advertisements next to pirated copies of The Tragically Hip’s music:

History Network - Tragically Hip - 4SharedOne of the most prominent critics of this ad-supported piracy is David Lowery of Cracker and Camper van Beethoven fame. Lowery will be one of the keynote speakers at the 2013 Global Forum at Canadian Music Week, which is coming up on March 22nd and is proudly sponsored by Music Canada.

Lowery has emerged as one of the most articulate voices championing artist rights in the digital age, penning a series of blogs at The Trichordist, including Letter to Emily White at NPR All Songs Considered and Meet The New Boss, Worse Than The Old Boss?.

The Trichordist has kickstarted discussion in this area, notably by launching a ‘name and shame’ campaign highlighting brands advertising on pirate sites. Music Canada has joined the campaign, tweeting at one brand per day to draw their attention to the problem. Canadian labels Last Gang Records and Six Shooter Records have also tweeted their support, as has the Featured Artist Coalition. The campaign has been gaining attention, and top brands have responded by ensuring their advertisements do not appear on pirate sites. For example, Levi’s was quick to respond to the news their ads were appearing next to pirated content. “When our ads were running unbeknownst to us on these pirate sites, we had a serious problem with that,” said Gareth Hornberger, Levi’s senior manager of global digital marketing. “We reached out to our global ad agency of record, OMD, and immediately had them remove them…. We made a point, moving forward, that we really need to take steps to avoid having these problems again.”

Also keynoting the Global Forum this year will be Chris Ruen, author of the new book, ‘Freeloading: How Our Insatiable Appetite for Free Content Starves Creativity’, which is an essential read for those working in the music industry.

Chris Castle will reprise his role as master of ceremonies at the 2013 Global Forum, which is sure to be an engaging conversation. I’d also like to announce that for the first time in the event’s history, the 2013 Global Forum will be streamed online and will encourage interaction through social media – which will hopefully bring the issue of brand supported piracy further into the mainstream discussion and encourage more brands to ensure they do not encourage or facilitate the exploitation of artists’ work.

Graham Henderson is the President of Music Canada. He also writes on an eclectic range of topics on his personal blog at www.grahamhenderson.ca.

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The Rambler by Graham Henderson: Analyzing Premier Wynne’s Inaugural Throne Speech’s Impact on Music

Graham_headphones3Blog ThumbnailThe Rambler is a column by Graham Henderson, President of Music Canada. Graham writes from time to time about developments in the music industry, new trends or just about music! Let’s face it, Graham has been around for a long time and has a lot to ramble on about.

After having gone MIA for a few weeks in terms of my contributions to the Rambler, I am back with an analysis of Premier Wynne’s inaugural throne speech.

The last few months have been good ones for music in Ontario. Under the leadership of Minister Michael Chan, the Ontario government launched an ambitious plan to turn Ontario into one of THE global destination for music tourism. And with good reason. Music tourism is Ontario’s hidden, un-accessed super power, fueled by our live music scene. This is timely and visionary because the Canadian Chamber of Commerce, just this week, identified Canada’s poor performance in the tourism sector as one of our top 10 barriers to competitiveness. You can read about Ontario’s plan here.

So what do we know about Ontario? We know from our economic impact study that there are more than 7400 employed in live music in Canada, and we have estimated that over HALF of them are here. We know that we have one of the largest, most diverse music scenes in the world. That gives us a built in advantage. We know from the Discovering Ontario report that tourism is the largest employer of young people in this province. We know from a report by the Ontario Arts Council that 9.5 million overnight tourists to Ontario participated in arts and culture activities during their trips in 2010. For almost half of them music was the motivation for their trip. It is also a fact that arts and culture tourists stay longer and spend more. And that’s without a coordinated marketing plan. Imagine what we could do if we had a plan and devoted even modest resources to this? Well, that plan in underway NOW.

Last Friday I was honoured to have been invited to Premier Wynne’s first “Jobs Roundtable”. Meeting participants were asked to share their insights and recommendations on what the government and businesses can do together to create jobs – particularly for youth – in the immediate term. I had three specific, achievable recommendations in the areas of tax credits, music tourism and music education. All of which seemed to have been very well received.

Then today came the Throne Speech which included, likely for the first time in history, a mention of music. While the reference was muted, it nonetheless came in a key economic section and in the same breathe as sectors that have long enjoyed powerhouse status in Ontario, automotive and agriculture. Here is the reference:

“[The Government] will look to stimulate productivity across all sectors, from automotive and agriculture to film, music, and digital media; from small business to start-ups and social entrepreneurs.”

The proposals we have put in front of the Government would help to do exactly this, and in an achievable, manageable way. Ontario’s music cluster is ripe for growth. Over 80 percent of the economic activity of the sound recording industry in Canada takes place here. This sector is one of Ontario’s competitive advantages, as the Ontario Chamber of Commerce has noted. Revenues for the Ontario sound recording industry totaled $408 million in 2010. Ontario has not yet fully capitalized on the strategic advantage it enjoys in the global music industry. Targeted provincial support is needed. According to an independent analysis, strategic productivity and jobs-focused supports for Ontario’s sound recording industry would trigger 60 million dollars in additional spending, generate 1,300 new jobs and result in almost $300 million in new economic output. This proposal was highlighted in the Ontario Chamber’s Emerging Stronger 2.0 document.

While music was not specifically mentioned again, arts and culture was highlighted as one of the aspects of our society that makes Ontario a great place to live:

“It will prove once again that Ontario is a great place to work and live, but also to visit, to invest in, to believe in. It will celebrate our hard work, our ingenuity, our diversity, our arts and culture, and protect the beauty of our natural environment.”

And this is the message that we have delivered repeatedly to all levels of government for the past year or more. Arts and culture and in particular music, serve to both attract and retain talented people. This in turn has a significant impact on business recruitment, retention, and expansion, as well as local entrepreneurship. An economic plan that stimulates the music community will in turn help to stimulate the economy at large. The Throne Speech noted that creative jobs are in every region of Ontario noting as an example that “We have authors and artists and actors in Timmins…”

On the subject of education, the Throne Speech noted that:

“Our young people will experience a world of which we can now only dream, and we must all work together to ensure they are equipped with the appropriate tools for their time. They must be literate in the languages of tomorrow; encouraged to pursue the paths of their choosing and prepared for the challenges ahead. We must emphasize critical thinking, creativity, teamwork and an entrepreneurial spirit.”

What is encouraging here is that while not specifically mentioned, music education is widely regarded as a key component in developing young minds and preparing them for careers in not just music, but in science, technology and mathematics. But as I pointed out at the Jobs Roundtable, music education is Ontario’s abandoned “game changer”. There are many people reading this who will understand me when I point out that music has a transformative power to open minds, to enhance collaborative skills and to change lives. Highly successful people in various fields, including Commander Chris Hadfield, have spoken of the important role music education played in preparing them for their career. It should not be discarded and lost in the shuffle. Music Canada recently announced a major donation to music education through our partners at MusiCounts. A $250,000 dollar grant to acquire musical instruments for at risk music programmes. You can read about it here.

Our hope, therefore, is that this government will easily grasp the role music can play in helping to achieve its educational objectives. We will certainly stand ready to help.

All in all, another great day for music in Ontario.

Graham Henderson is the President of Music Canada. He also writes on an eclectic range of topics on his personal blog at www.grahamhenderson.ca.

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Music Canada Proud to Support 42nd Annual JUNO Awards

Toronto, February 19, 2013: Music Canada is proud to return as sponsor of the Album of the Year Award at the 42nd Annual JUNO Awards.

“Canadian bands and artists continue to demonstrate the depth and diversity of talent in this country, as they attract audiences here at home and around the world, forming one of Canada’s greatest exports,” says Graham Henderson, President of Music Canada. “At Music Canada we are fortunate to work alongside amazing artists like those nominated for this year’s Album of the Year Award, in an effort to promote and protect Canada’s vibrant music community, which not only makes an unparalleled cultural and social contribution but is also an economic powerhouse for Canada.”

The Album of the Year Award will be presented at The 2013 JUNO Awards Broadcast at The Brandt Centre on Sunday, April 21st, 2013 in Regina, SK.

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Ontario Arts Council releases comprehensive profile of Ontario’s Arts and Culture Tourists and Their Economic Impact

Today, the Ontario Arts Council (OAC) released the Ontario Arts and Culture Tourism Profile, a report conducted by Research Resolutions & Consulting Ltd. and commissioned by the OAC. The report provides a comprehensive profile of Ontario’s arts and culture tourists and their economic impact. 

The report finds that 9.5 million overnight tourists participated in arts and culture activities in 2010, representing over one fifth of the 42.8 million overnight trips to Ontario that year. Of those 9.5 million arts and culture tourists, 66% were Canadian, 23% were American, and 1.1 million were from overseas. Arts and culture was a major draw for international tourists, with arts and culture tourists representing 39% of all American overnight visitors to Ontario in 2010, while 63% of tourists from overseas took part in arts and culture activity while visiting Ontario. 

The OAC report shows that arts and culture tourism has a significant economic impact in Ontario, with arts/culture tourist spending generating $3.7 billion in GDP in Ontario in 2010, supporting 67,000 jobs and $2.4 billion in wages and generating $1.7 billion in taxes for all levels of government. 

For more than 44% of the 20.8 million North Americans travelling to Ontario, at least one arts and culture activity was the main reason for their trip. 

Music was a major driver of Ontario tourism, as 6.5 million North American tourists took in music performances including classic, jazz, opera, popular/rock ‘n roll and country while visiting the province, making up approximately 31% of all North American tourists to Ontario. Music performances were the largest tourism driver among all Arts activities, with more attending concerts than theatre, art galleries, or ballet.

Of the 6.5 million tourists who attended music performances in Ontario, 44% of them said that the concert was their primary reason for traveling to Ontario, comprising a total of 2.9 million tourists who said that a concert was their main reason for traveling to Ontario.

The report also found that Arts festivals such as international film festivals, music, and/or literary festivals, drew 3.8 million tourists to Ontario. Music festivals were by far the biggest draw among Arts festivals, attracting 54% of these fans. The report says that “apart from music festivals, theatre is the only arts/culture trip driver to attract at least one third of group members (37%).”
While taking in arts and cultural activities, Ontario’s North American tourists also participate in many other types of activities during their trip, with 84% of them also participating in Outdoor experiences such as a nature park, and 75% of these tourists adding Shopping as part of their trip.

The Music Performance tourist group had the highest proportion of younger tourists (18 – 34 years) among all groups surveyed, with 36% of respondents in the younger age range, compared to 30% in the tourism market as a whole. 
The report also shows that the value of arts and culture overnight tourists is high, with arts and culture tourists outspending typical overnight tourists in Ontario by nearly two-to-one, spending $667 per trip in Ontario, compared to $374 spent by the typical overnight tourist.

The economic benefits of arts and culture tourists reach many other sectors, the report shows: 

  • Arts and culture tourists contributed $1.1 billion to the lodging sector, close to two-fifths of all spending on lodging by overnight tourists during the year (38%)
  • Arts and culture overnight tourists spent $1.1 billion on food and beverages, making up one-third of all overnight spending by overnight tourists (34%)
  • Arts and culture overnight tourists contributed $0.6 billion to the retail sector, or two-fifths of all spending by overnight tourists in Ontario (43%)
  • Over half of all spending by overnight tourists in Ontario came from arts and culture tourists (51%), who contributed $0.5 billion

In an OAC release, Michael Chan, Minister of Tourism, Culture and Sport said “Cultural tourism is a powerful force that is transforming global travel and trends. Our diverse arts, culture and heritage has helped us attract visitors from within our borders and beyond to explore and experience our exciting province. Our government is committed to evolving our tourism strategy to align with our cultural assets – for example, harnessing live music experiences that will drive our economy and firmly place Ontario on the international map as a premier cultural travel destination.”

“The conclusions that can be drawn from this ground-breaking study confirm that the instincts and vision of Minister Michael Chan are bang on,” said Graham Henderson, President of Music Canada. “Despite the fact that music tourism has never been seriously promoted in Ontario in its history, among ALL arts activities, music remains the largest driver of tourism. It is also worth noting that music is an essential underpinning for cultural events perhaps not categorized as a music event; Toronto’s Caribbean Carnival, for example. We might also have regard to the category of “Arts Festivals.” Within this category, music festivals outclass all other sectors by a substantial margin.

And this is all without a PLAN or any focus. As our Austin study has shown, when a city or state puts its mind to it and develops a strategy, great things happen. In 5 short years, the economic impact of music in Austin jumped from $616 million to $1.3 billion. Fortunately, that is all about to change for Ontario, and the music community eagerly awaits the announcement by Minister Chan tomorrow at the Horseshoe.”

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Toronto City Council Makes Landmark Commitment to Arts Funding: Music Canada

Toronto, January 16, 2013: On behalf of our members and partners, Music Canada wishes to congratulate Mayor Rob Ford and the Members of City Council for their commitment to increase funding to the broad spectrum of arts in Toronto, including the city’s diverse and authentic music cluster.

“Toronto is by any measurement, one of the most successful music markets in the world, evidenced by the diverse and authentic live music offerings found throughout the city on any day of the week. The business of music employs thousands of people, attracts visitors from down the road and beyond our borders, and makes the city a desirable place to live, work and invest. With today’s decision, City Council demonstrates that it recognizes the importance of the music cluster and opens the door to a new level of communication and cooperation. We commend the leadership of Mayor Ford and Councillors Gary Crawford and Josh Colle, who were integral to making this happen,” says Graham Henderson, President of Music Canada.

The 2013 Capital and Operating Budgets include a boost in arts funding derived from the billboard tax. Among the priorities listed in the motion put forward to the Executive Committee by Councillor Gary Crawford was “support for Toronto’s music cluster.”

“As one of the country’s premier music festivals, North by Northeast would like to offer sincere thanks and congratulations to the Mayor and City Council for recognizing the tremendous economic, cultural, and civic value of music on Toronto. The City’s firm support of artists, venues, festivals, and fans will help grow our already vibrant music scene into a global phenomenon that will attract and inspire the world,” says Andy McLean, Managing Director/Co-founder, North by Northeast.

“Toronto’s music community is one of the most vibrant and vital in all of North America, and we are both grateful for the City’s commitment to its health and excited about the possibilities it opens up for the continued growth of the sector. This announcement represents an investment in economic development, social health, and cultural heritage, all of which will return great dividends to the people of Toronto,” says Jesse Kumagai, Director of Programming for The Corporation of Massey Hall and Roy Thomson Hall.

Music Canada has published a report identifying opportunities for greater growth and promotion of the music industry in Toronto and is working with a coalition whose members include live music venues, festivals, concert promoters, music labels, recording studios, managers and artists.

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For more information:

Amy Terrill – Vice President Public Affairs, Music Canada
aterrill@musiccanada.com 647-963-6044

Music Canada is a non-profit trade organization that represents the major record companies in Canada, namely Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Music Canada also works with some of the leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists in the promotion and development of the music cluster.

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Music Canada Congratulates Toronto’s Executive Committee on Support of Toronto’s Music Cluster

Toronto, January 11, 2013: Music Canada congratulates Mayor Rob Ford and the Executive Committee Members for their forward-thinking decision to approve a multi-year funding strategy which will increase the per capita funding of arts and culture; prioritize key initiatives including support for Toronto’s music cluster; and implement the Creative Capital Gains Report.

“This decision will lead to a stronger economic future for the City of Toronto,” says Graham Henderson, President of Music Canada. “It is through the leadership of Mayor Rob Ford, Councillor Gary Crawford who framed the motion, as well as all members, past and present, of the Executive and Economic Development Committees, that we will succeed in leveraging Toronto’s vibrant music cluster in order to stimulate employment, develop Toronto’s international brand as a music city, and attract further investment. We have developed a music strategy where everybody wins and are thrilled to have overwhelming support at City Hall.”

Among the recommendations in the Creative Capital Gains report was to develop a strategy to promote and foster Toronto’s music cluster. In February 2012 Music Canada presented research to support this initiative to the Economic Development Committee which passed a motion instructing staff to work with Music Canada and other music industry representatives to develop a plan.

“The progress made today would not have been possible without the enlightened decision-making by Economic Development Committee Chair Michael Thompson and Councillors Josh Colle and Shelley Carroll, as well as the bold initiative taken by Councillor Mike Layton who seized on the music opportunity created by the Creative Capital Gains report. This is an exciting step forward and we look forward to the support of City Council next week,” says Henderson.

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For more information:

Amy Terrill – Vice President Public Affairs, Music Canada
aterrill@musiccanada.com 647-963-6044

Music Canada is a non-profit trade organization that represents the major record companies in Canada, namely Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Music Canada also works with some of the leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists in the promotion and development of the music cluster.

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The Rambler by Graham Henderson: Pandora opens the box

Graham_headphones3Blog ThumbnailThe Rambler is a column by Graham Henderson, President of Music Canada. Graham writes from time to time about developments in the music industry, new trends or just about music! Let’s face it, Graham has been around for a long time and has a lot to ramble on about.

It is not time to yet celebrate the trashing of Tim Westergren’s embarrassing bout of Congressional panhandling…but we are getting close. I can’t imagine that anyone in our industry is unaware that rather than update its business model, Pandora sided with entrenched media and Internet companies and went to Congress in an effort to force a reduction in royalty rates paid to performers. Separately, Pandora has sued ASCAP to lower royalty rates paid to songwriters — just for good measure.

Pandora’s Tim Westergren and Joe Kennedy complained to Congress that Pandora pays a high proportion of revenues in royalties. The problem with this argument is that Pandora CREATED the profit squeeze they complain of by adopting a business model that artificially limited advertising to a single minute every hour. Had Pandora adjusted their model by airing one minute more, Pandora’s profits would dramatically improve.

As David Lowery relates in the Trichordist, the Committee opened up a can of whup-ass on Pandora. Tim Westergren, who just a week or so ago happily showed up at the Future of Music conference (with tousled hair and a hoodie), dodged the Congressional lion’s den altogether. #Coward. Instead, Pandora sent its CEO, Joe Kennedy, to the slaughter.

And a slaughter it was. From all sides of the spectrum abuse was heaped on the idea that Congressional lawmakers should get involved in a private dispute over the payment of royalties–at rates that Westergren himself crowed only a few short years ago was a fine solution for Pandora. In fact, the entire event pinwheeled out of control when lawmakers started asking inconvenient questions about why performers were not receiving royalties when their music was performed on terrestrial radio. This plum presented itself to lawmakers because, inexplicably, Pandora had enlisted lobbying support from terrestrial broadcasters. Of course, terrestrial radio in the US does not pay a performance royalty for sound recordings played on their air. No one knows this better than the Members of the very Congressional subcommittee holding yesterday’s hearing. Rep. Sensenbrenner told Pandora that the subcommittee has devoted more time to this issue than any other in his long service. So for Pandora to throw in their lot with the broadcasters was a very odd choice of bedfellows that put the lack of a performance royalty for US terrestrial radio squarely on display – Member, after Member, after Member raised this issue.

As far as Pandora’s issue with rates–the Subcommittee members nearly unanimously asked “when is a deal a deal” and recited back to Pandora Tim Westergren’s own words from three years ago in which he had celebrated the end of the “royalty crisis!”

It is also worth noting that Rep. Jason Chaffetz, the bill’s author, got little or no support from his co-sponsors. Only one co-sponsor spoke and had little to say in defense of the bill. After sitting through an hour and a half of uniformly negative statements by his colleagues, Rep. Chaffetz became so agitated that he actually insulted the mother of the head of SoundExchange in an extraordinary breach of Congressional decorum. Moms are sacrosanct…even in the bear pit that is Congress. Stay classy, Congressman.

I have always thought Pandora’s choice of name might come back to haunt them. Those of you with even a passing familiarity with the classics will recall that the Titan Epimetheus (brother of the more famous fire-stealer, Prometheus) was given a “gift” by Zeus – it was the beautiful, god-crafted Pandora. Now his brother Prometheus had warned him NEVER to accept gifts from Zeus (the two were not exactly on good terms since Prometheus had been chained by Zeus to a rock for all eternity while his liver was repeatedly eaten out by a Vulture.)

Epimetheus forgot his brother’s advice. He accepted Pandora from Zeus and he was even more delighted when he saw that with Pandora came an unusual, sealed chest.

He was told NOT to open it under any circumstances. One day when her husband was away, Pandora, consumed with curiosity (a fatal flaw “programmed” into her by Zeus himself), was unable to resist her impulses – she opened the chest. The moment she did, out flew a ghostly parade of demonic forms that represented every evil Zeus had wished to visit upon mankind. Men and Women had, for example, been free from work – they lolled around living off the largesse of heaven and the gods. After the chest was open, they were condemned to actually WORK for a living.

Well, Westergren, it appears, has opened his own version of this chest….and what demon has he unleashed. It looks Pandora is going to have to WORK to adapt their business model to the market…there will be no heavenly handouts from the congressional gods. But he can hope: Pandora did.

Graham Henderson is the President of Music Canada. He also writes on an eclectic range of topics on his personal blog at www.grahamhenderson.ca.

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