Another Music Tech Startup Killed By Licensing - hypebot

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Matt

I have an idea for an innovative new car dealership, but BMW won't sell me cars at prices I think are innovative. Instead, BMW wants to sell cars for the boring old, non-innovative prices they have set themselves.

Another New Car Dealership killed by licensing!

Alex

A weak analogy.

BMW = A physical single-user machine that carries no downstream revenues.
Song = a multi-tenant cultural (shared) digital media license with loads of downstream revenue opportunities (which wahwah.fm was trying to help maximize through engaging technology).

Music is digital now. The attention economy rules. Foolish to crush an innovative company like this, rather than leverage it.

Junior Island Adventure

I have an idea for a contemporary new car shop, but BMW won't provide me automobiles at expenses I think are contemporary. Instead, BMW wants to provide automobiles for the boring old, non-innovative expenses they have set themselves.

Glenn

Constant renegotiations with labels shouldn't have been a problem in the U.S. -- they were using a statutory license for webcasters, rights?

I don't think this is necessarily a bad outcome. Outsourcing licensing to a service such as Spotify has the potential to open the door for a lot of innovation (EMI is trying something along these lines with its Sandbox initiative with the Echo Nest). It frees the startup from having to deal with rights owners who "don't have a clue about new models," to quote Eibach, while reducing the work load of labels' biz dev departments.

Ben Looi

I've always wondered why anyone would want to pay to tune in to an online radio station when conventional over-the-air radio is free. There's a difference between broadcast and narrowcast models, in terms of reach and cost. Ultimately it must be a viable business where revenue exceeds cost.

Cathy

Good. It should have failed. And kudos to the music companies who are starting to get wise. It is not in a music company's best interest to offer their entire catalog for anything less than a fair price. Exclusivity is more valuable than being everywhere for peanuts. The day publishers stop giving away the entire farm to tech companies is the day music becomes more valuable.

Kelland

This is the harsh reality that a lot music start up's face when they are not connected and funded. I interviewed WahWah earlier this year and I loved what they "were doing."

John Doe

Just because they did something many think its cool, they should still pay what the price is. It doesnt make sence that you can skip songs and then just pay a standard radio license. You should however have the possibility to pay a slightly higher fee to do such things.

"You talk to them and they don’t have a clue about new models". And maybe he didnt have a clue about the musicbusiness?

John Doe

Why? Maybe in 6 months time a just as innovative company make a service AND a businessmodel which is acceptable for everybody?

You're way to naive...

Bob D

Eibach simply said, “Overall, don’t do music.”

Eibach should take his own advice.

Matt - At my dealership, BMW had the nerve to ask me to pay for their cars after I sold them ! You would think they would be so thrilled at the free promotion I gave them, they just don't understand the new model.

Peter

Pay musicians what they are worth. Stop trying to use them as a product to make money off of and claim "they will get promotion" for giving away their product for free while you go and sell to advertisers for larger amounts, while you make a six figure salary, and collect huge investor benefits. Obviously someone is getting paid here and its not the talented artists who are creating music for you to use. Take a cut in your six figure salary or raise more capital before you go out and exploit. There are plenty of companies who pay the artists out for the use and its a LOT more promotion. Press sites overall are in the thousands to million hits range and they don't give away their product but they gain exposure and benefit from this.

"Overall, don’t do music.” - yes, if you don't get how much it costs to make a record or work an artist and think you should be able to just use for free, please don't do music.

Melissa

Peter

Also, if you think its an 'Old mentality' to want to get paid for something you spent a lot of money to produce and create, then why don't you work for free?

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