Posted in 2009 #26, Newsletter by Al Verik
Net Neutrality has not really ever been clearly defined to the public but it is probably the biggest issue facing the Independent Music Label Community in terms of promoting and selling our music in the digital economy. It’s all about access on the Internet.
Net Neutrality proposes that access be made available to all content providers and consumers on an unfettered basis except for illegal software services, like Kazaa, which have no licenses for the content they make available and should be denied access as they do not compensate music creators or those that invest in that creation.
Independent Music Labels have always faced barriers to entry when looking to promote and sell our music. In the old simpler days when the focus was on AM/FM Radio to promote music, Independents could not get access due to the labyrinth of the large staffed major label national and promotional staffs, expensive Independent promoters with radio station relationships, expensive major label contests and fly-in’s, etc. that grabbed and still grabs most AM/FM radio spins. And all of these still exist on a smaller scale today. At brick and mortar retail the high cost of cooperative advertising needed to get pricing and position did, and still does, result in reduced retail space for Independent Music Labels.
The advent of the digital era changed the access story. The Internet allows music labels to go directly to consumers to promote and sell their music via web radio, social networking sites, label websites, etc. Music promotion is available in many ways and via digital retailers and cell phones music can be sold with no shelf space limitations. The value of this access to Independent labels is demonstrated by the almost 40% of market share Independent labels have at digital streaming sites like Pandora, Yahoo!, SomaFM, etc., as reported by SoundExchange and the 39% digital share of retail sales per SoundScan (versus 31% at traditional retail). As WiMax and Generation Four phones roll out there will be upgraded Internet access and better music search engines, this will only improve independent access unless…
Unless access to the Internet is restricted via someone controlling access as a Gatekeeper and possibly charging for content providers to put their content on the Internet and charge consumers to see the content. It should be obvious to all who would want this type of world and they are working behind the scenes to create these types of barriers.
Our friends at Future of Music Coalition have a great write-up on Net Neutrality on their website. We will work with FMC and other allies to lobby lawmakers to ensure equal access for all!!!
