Abstract
In Part I of this monograph, we examined the role that direct licensing played in making the music industry more competitive by eliminating the inefficiencies associated with copyright administration.
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Notes
- 1.
See Alexander (1994).
- 2.
- 3.
See Morgan (2014) in which he documents one of the first and relatively unknown crashes in music sales in the music industry.
- 4.
See also Murphy (2014, pp. 1–56).
- 5.
See McNally (2014, pp. 198–199) for more on the facts and figures of early radio. This book is a historical account of the contributions of African-Americans to the evolution of music in the United States and contains an extended music bibliography.
- 6.
- 7.
Pollock (2014, pp. 22–23).
- 8.
See Stanley (2014, pp. xviii–xx).
- 9.
See Pollock (2014, pp. 41–42).
- 10.
- 11.
Reich and Gaines (1999a). Emphasis added.
- 12.
- 13.
See Yagoda (2015, pp. 41–43).
- 14.
See Stanley (2014, pp. xviii–xx), McNally (2014, p. 243) and AFM History 1896–2009: http://www.afm.org/about/history.
- 15.
See Yagoda (2015, p. 215) and Broadway Season Statistics, http://www.broadwayleague.com/index.php?url_identifier=season-by-season-stats-1.
- 16.
See Pollock (2014, p. 35).
- 17.
See Stanley (2014, pp. xviii–xx).
- 18.
See Murphy (2014, pp. 339–347).
- 19.
See also Murphy (2014, pp. 1–46) for his historical account of the boom and bust time period in the record industry. In interesting anecdotes that we mentioned earlier, Murphy reveals on page 43 that due to the high cost radio equipment, there was an upsurge in pay-phone vandalism in 1920 all across America because teenagers were ripping out the receivers in phone booths on a massive scale to use as parts to make headphones. By the end of 1922, there were 20,300 radio stations licensed and of that amount, 15,780 belonged to amateurs, many of whom were youngsters clogging up the airwaves with music. Murphy also describes on page 46, ASCAP’s early lawsuit for copyright infringement against Bamberger & Company (now Macy’s), a department store and owners of WOR, a radio station in New Jersey. ASCAP’s disastrous boycott of radio stations in 1941 is described on pages 74–76. The book is quite fascinating with an emphasis on the boom and bust and rebirth of the music industry, but it does not contain footnotes and the bibliography is rather scant.
- 20.
See Murphy (2014, p. 347).
- 21.
- 22.
See Stockment (2009) for a review of the economic impact of royalty rates on Internet radio.
- 23.
See Murphy (2014, pp. 339–347).
- 24.
See Murphy (2014, pp. 339–347).
- 25.
See Murphy (2014, pp. 339–347).
- 26.
- 27.
See Budnick and Baron (2012, pp. x–xi).
- 28.
- 29.
See the analysis of the landmark Betamax court case also known as Sony Corp. of Am. vs. Universal City Studios, Inc., 464 US 417 (1984) in Samuelson (2006). Blockbuster Video became one of the pioneers in movie and video rental services and would later file for bankruptcy as it became difficult to compete with the digital offerings of Netflix movie-streaming services, DVR recorders on cable set-top boxes and cloud services that provide simultaneous access to multiple platforms such as smart phones, televisions, computers, and tablets.
- 30.
See the discussion in Gordon (2011, pp. 119–126).
- 31.
See Gordon (2011, pp. 119–126).
- 32.
See Gordon (2011, pp. 119–126).
- 33.
See also Langenderfer and Cook (2001) and MGM vs. Grokster, US Court of Appeals for the Ninth Circuit, Case No. 04-480, argued March 29, 2005 and decided June 27, 2005 for additional details.
- 34.
See Gordon (2011, pp. 125–126).
- 35.
The court’s decision can be found here: Viacom International, Inc. v. YouTube, Inc. (2013).
- 36.
See Gordon (2011, pp. 135–150), and Fogarty (2008). Various industry associations typically filed these lawsuits on behalf of their members. For example, the Recording Industry Association of America (RIAA) is the trade group that represents the major record labels. The National Music Publishers’ Association (NMPA) represents all the major music publishers. The Motion Picture Association of America (MPAA) members are owners of the motion picture studios.
- 37.
See RIAA Set For Historic 10,000,000th Google URL Takedown at http://www.torrentfreak.com/riaa-set-for-historic-10000000th-google-url-takedown-130204/.
- 38.
- 39.
See Passman (2012, pp. 242–243).
- 40.
See Edwards (2013).
- 41.
See Edwards (2013).
- 42.
See Edwards (2013).
- 43.
Big Data refers to voluminous streams (in terms of variety, scale, size, amount and form) of individual personal information collected from “clickstreams” or online browsing behavior, Internet Protocol (IP) addresses, mobile phone usage, social networks, blogs, online shopping patterns, and other electronic means.
- 44.
See Section III: The RMLC-ASCAP License Agreement for the Period 2010–2016, US vs. ASCAP & In re Petition of Pandora Media (2014, pp. 19–22).
- 45.
As of September 16, 2014, Clear Channel was re-branded as iHeartMedia to incorporate a growing digital trend into its identity.
- 46.
See Perlberg (2014) and Total US Ad Spending to See Largest Increase Since 2004: Mobile advertising leads growth; will surpass radio, magazines and newspapers this year at http://www.emarketer.com/Article/Total-US-Ad-Spending-See-Largest-Increase-Since-2004/1010982.
- 47.
- 48.
See Christman (2008).
- 49.
See Biddle (2013). On May 8, 2014, the Financial Times reported that Apple Inc. were in negotiations with Beats Music to purchase the company for US $3.2 billion.
- 50.
Although the iPod and MP3 players are both music players, the iPod is a specific brand of an MP3 player made by Apple that has a unique set of design features that utilize the software.
- 51.
See Passman (2012, pp. 74–82).
- 52.
See Gordon (2011, pp. 125–126).
- 53.
See Gordon (2011, pp. 153–160). One such platform was the broadcast television program, American Idol (and the other imitators) that created more impressions than the traditional radio format of breaking new artists.
- 54.
See Gordon (2011, pp. 125–126).
- 55.
See Christman (2014).
- 56.
See International Federation of the Phonographic industry (IFPI), Digital Music Report 2013, pages 5–6, accessed online at http://www.ifpi.org/content/library/DMR2013.pdf and Vermeulen (2014).
- 57.
See Downes (2011).
- 58.
See Walmart selling Apple’s iPhone 5 at big discount: http://www.reuters.com/article/2012/12/15/us-apple-walmart-iphone-discount-idUSBRE8BD1D120121215.
- 59.
See Peoples (2013).
- 60.
- 61.
See How to Overcome a Binge-Watching Addiction: The key to the cure? Understanding how TV scripts and your willpower work, Wall Street Journal, September 26, 2014 and available online: http://www.wsj.com/articles/how-to-overcome-a-binge-watching-addiction-1411748602. Binge-watching has apparently become “addictive” for some consumers and it probably means that these consumers may be leaving advertising supported networks for good.
- 62.
See Netflix analyzes a lot of data about your viewing habits that is available here: https://www.gigaom.com/2012/06/14/netflix-analyzes-a-lot-of-data-about-your-viewing-habits.
- 63.
See Carr (2014b).
- 64.
- 65.
See Ulin (2014a, pp. 42–43).
- 66.
The details on the related lawsuits against Apple and the five book publishers for fixing the prices of certain e-books in violation of the Sherman Antitrust Act are discussed here: State of Texas vs Penguin Group & In Re: Electronic Books Antitrust Litigation (2014).
Judge Denise Cote—presiding in the Apple/book publishers antitrust case—is the same judge who is enforcing ASCAP’s consent decree. She is the author of many of the ASCAP-related court opinions and orders cited in this book.
See also The Piracy Problem: What can YA publishers and authors do to get more readers to buy books instead of illegally downloading them?, Publishers Weekly, July 21, 2014. p. 20.
- 67.
See Checking in on the Digital Royalty Debate, Publishers Weekly, December 9, 2013, pp. 5–6.
- 68.
See http://www.worldcat.org for a listing of the 72,000 libraries and lending institutions for physical and e-books.
- 69.
What are to become of physical lending libraries that were once the repository for printed books and displaced librarians are just some of the secondary effects of the digital revolution that remain unanswered.
The books will probably be stored at inaccessible off-site locations that may take days to retrieve.
- 70.
See Amazon Not as Unstoppable as It Might Appear, New York Times, December 18, 2014, p. B1.
- 71.
See Anders (2013).
- 72.
See http://www.apub.com/about.
Amazon has also developed a traditional publishing organization, which is similar to the “legacy” publishers, and consists of 14 imprints.
- 73.
See Gapper (2014).
In early November 2014, it appeared as though Amazon had settled the E-book and print sales pricing dispute with major publishers Simon & Schuster and Hachette.
See also Amazon Versus Hachette: The Whole Story: http://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/63304-amazon-versus-hachette-the-whole-story.html, Publishers Weekly, November 2014, for a regularly updated series of articles on the dispute and its resolutions.
- 74.
See Gapper (2014).
- 75.
There are many other e-book publishers and a list can be found here: Which E-Book Publisher Is Right for You,? Publishers Weekly, February, 14, 2014 and accessed online http://www.publishersweekly.com/pw/by-topic/authors/pw-select/article/61059-pw-select-february-2014-which-e-book-publisher-is-right-for-you.html.
- 76.
See Christman (2008), State of Texas vs Penguin Group & In Re: Electronic Books Antitrust Litigation (2014), McKinney (2014), and Streitfeld (2014);
What Is the Agency Model for E-books?—Your Burning Questions Answered, available here:
http://publishingtrendsetter.com/industryinsight/simple-explanation-agency-model;
Will the Agency Model Survive? Hachette, Amazon and the future of agency pricing, Publishers Weekly, May 19, 2014. p. 6; and
Endgame: With a final order issued, the Apple e-book price-fixing case is winding down—what happens now?, Publishers Weekly, September 9, 2013, pp. 5–6. and
Hyatt, M. (2010), Why Do E-books Cost So Much? A Publisher’s Perspective, November 2, accessed online: http://michaelhyatt.com/why-do-ebooks-cost-so-much.html.
- 77.
See Gapper (2014).
- 78.
See Gapper (2014).
- 79.
See Facebook Reports Third Quarter 2014 Results that is available here: http://www.finance.yahoo.com/news/facebook-reports-third-quarter-2014-200100790.html.
- 80.
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Pitt, I.L. (2015). Introduction. In: Direct Licensing and the Music Industry. Springer, Cham. https://doi.org/10.1007/978-3-319-17653-6_7
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