Steve Jobs Craps Pants, Cries In Corner Over Royalties

Posted by on Oct 1, 2008 | Comments (3)

Apple has announced that if the iTunes Music Store is forced by a Library of Congress-appointed Copyright Royalty Board to increase their royalty rate for publishers and songwriters by six measly cents per song, then boo hoo, waah waah, they’re going to have no choice but to shut down the iTunes Music Store altogether.

From Wired:

“If the [iTunes music store] was forced to absorb any increase in the… royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss—which is no alternative at all,” wrote Apple iTunes vice president Eddy Cue in a statement filed with the board last year, according to Fortune. “Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”

It’s easy to see that Apple is bluffing its ass off in an attempt to get record labels to absorb the six cents. But what’s even more infuriating is that they have the full stupid support of music fans who’ve been indoctrinated for the last ten years to believe that anything except 100-percent free music is the product of the evil recording industry and who clearly don’t know the difference between the record label, the recording studio, the RIAA, and the publisher.

One comment is indicative of many:

“As much as I have been an apple hater over the years and despise the i-tunes concept becuase of the DRM, kudos to them for taking such a hard line stand. The studios know the end of i-tunes will pretty kill their last existing business model. It’s about time somewith the power has the moxy to tell the RIAA F-YOU”

Now, I’m aware that Internet comments are by nature an intellectual cesspool, but what worries me is that everyone takes this knee-jerk “fuck the record industry” stance without understanding that this mechanical royalty rate increase is a move to actually help the artist. Of the four categories above—label, studio, RIAA, and publisher—there’s one that does right by the artist, and that’s the publisher. Nearly all songwriters work with a publishing company which pays them songwriting royalties. And everyone knows that songwriting royalties are the best and most feasible way for musicians to support themselves.

I’ve personally known musicians who’ve released 10 albums and hardly seen any paychecks at all. Then, bam! One day their song gets covered by a more famous artist, or used in a commercial, or played in the background on a made-for-TV-movie that airs in Australia, and all their hard work finally pays off—to say nothing of the many obscure artists who share songwriting credit for hip-hop samples, or those important figures who’ve maybe never even recorded a song but have written hit after hit.

Six cents might not sound like a lot, but try telling that to David Axelrod, the Los Angeles musician whose “Holy Thursday” was tapped for a sample on Lil’ Wayne’s mega-selling The Carter III. Try telling that to Rowland Salley, whose beautiful “Killing the Blues” was included by Alison Krauss and Robert Plant on their mega-selling Raising Sand. Try telling that to Tom Waits, whose “The Long Way Home” from Norah Jones’ mega-selling Long Way Home earned him more royalties than his entire brilliant 1972-1980 catalog combined.

So to Steve Jobs: Quit your crying. In the immortal words of Seth Tobocman, you don’t have to fuck people over to survive. Pay the six cents and earn yourself a little goodwill.

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  1. gerry
    October 2, 2008


  2. Shawn R. Britton
    October 22, 2008

    As a a reissue record company employee of over 20 years AND a recording musician, I say “PAY THE ROYALTIES!”. Artists need to be compensated for their work, or they will have to find another source of income. Apple can afford to pay royalties, and consumers can afford a few pennies more for the downloads. If you can afford a computer for iTunes downloads, then you can afford to support your favorite recording artist. Would you want to work for no pay? I thought not.

    Peace Out,

  3. dan richards
    November 22, 2008

    Steve Jobs can cry about all the taxes he will save from “taking a large loss” in Itunes!
    My heart goes out to you for understanding a truly desperate situation a lot of artists are in financially. Even though some like David Axelrod get the credit, he would at this stage of life enjoy a little bit of the “dough” these so called samples should bring him
    and do not even imagine they do!
    Publishers and record labels are as greedy as the oil companies. It takes a lot of money to find a lawyer to go after your own dough. At least as an artist the fact remains you cannot eat on reviews;regardless of how good they are!


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