From a listener point of view, no wonder we were unhappy. I was a verified fan. (Gareth Cattermole/TAS18/Getty Images for TAS / Getty Images). If you want to listen to the most popular songs from the 30s and 40s something that I have to do in my job oftentimes the only place to find them is from vinyl collectors who are on YouTube, to your point, and have uploaded themselves playing the vinyl. Now we live in a world where people can blow up on TikTok overnight and negotiate very favorable terms with a label because they have already built an audience. Part of doing so would require getting permission from all of the labels to be able to play all songs, all the time, all the way through on demand, and whenever you want. "Even our competitors want to come on our platform. Over 2 million tickets were sold on Ticketmaster for Taylor Swift | The Eras Tour on Nov. 15 - the most tickets ever sold for an artist in a single day. We were looking at the number of legacy artists that are selling off their catalogs for huge amounts of money to private equity companies, who all think theyre going to make massive returns on owning those catalogs of music. For the labels, its very clear. It was the labels job to promote you, manufacture CDs, truck those CDs to stores all over the country, manage their relationships with physical media, and distribute it. Following widespread issues with the sale of tickets to her upcoming Eras Tour, the singer wrote that she hopes "to provide more opportunities for us to all get together and sing these songs." On. Theres huge supply strain constraints. Invites will also be staggered by tour dates in each city. Taylor Swift fans who are registered as "verified" may have a second shot at tickets to her "Eras Tour" as Ticketmaster tries to make things right after its website crashed last month amid an onslaught of orders. We can talk. Let us know when you do in comments. It used to be that you sold the music, and all the other stuff was just promotion for the music as this thing you sold. While it's impossible for everyone to get tickets to these shows, we know we can do more to improve the experience and that's what we're focused on," it concluded. Well, I think that tour is actually finally over, but she was effectively permanently on tour, and it was generating tons of media for her on social. There are no founder-friendly music labels out there. That dynamic, where you expect more but pay less and the artists are openly struggling, is the most unusual thing about music to me. The idea is that you have to just accept that people want access to everything all the time. I remember Steve Jobs saying, People dont want to rent their music. Taylor Swift Makes Surprise AMAs Appearance in Golden Jumpsuit and Shouts Out Blake Lively! "We will sometime soonish. Well, I want my money to go to the artist as directly as possible. The economics of this dont make sense for us. Shes not going to buy it, so shes just recreating it, and that is an age-old thing that so many different artists have done. Lisa Marie Presley's net worth: Losses, lawsuits and Graceland, Marie Osmond says her kids won't get an inheritance, Former "American Idol" contestant C.J. Spotify then launched in the United States in 2011. In addition to a lawsuit filed by over two dozen fans against Live Nation Entertainment, Ticketmaster's parent company, the Swifties are taking their complaints against Ticketmaster all the way to D.C. You cant put that genie back in the bottle. The series of concerts is . Tuesdays top tech news: An Apple (a) day, Watch Apples 19-minute M2 MacBook Pro and Mini intro video, The Mac Pro is now Apples last machine with an Intel chip, Apples M1 iPad Air is back down to its lowest price, Apple announces MacBook Pros with M2 Pro and M2 Max chips. A lot of songwriters liked that model. Like everybody else, she has all those things, but she leans the hardest into music. Thats for sure. So I think something could happen there. Once again, probably best not to get your hopes up. Greg Maffei, CEO of Liberty Media, opened up about the ticket fiasco during an appearance on CNBC's "Squawk on the Steet." You would get a small proportion, 20 percent or less. Very much so. Theyre just like, I dont understand, big tech company. Its not that the music is worth nothing, its that most people are being compensated very poorly and have a barrage of bad contracts that they have not had any say in, whether those are the contracts that were signed between the majors and the streamers or the contract that they signed with their label. Shes not asking them to buy the record again. The one that comes to mind for me immediately and instantly is TikTok. They want to exit or they actually believe in this system and think that those revenues in the future are going to be very valuable. Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Taylor Swift, interestingly enough, is a great way of looking at the different eras of the music industry, of when they began and when they ended. Okay. A few hours after the sale's planned start time, Ticketmaster tweeted that the issues were due to "historically unprecedented demand" and announced it was pushing back the start times for some West Coast venues. Its a little late in this episode. That just seems very untenable to me. They want to have a relationship with it. This was a religious war inside the tech and media industries. Then thats why she ends up crashing Ticketmaster, because she understands exactly how to leverage those fans into tickets. It's truly amazing that 2.4 million people got tickets, but it really pisses me off that a lot of them felt like they had to go through several bear attacks to get them. These companies have been replaced by technology distributors Spotify and all of our favorite tech overlords, like Apple, Google, and Amazon. You want to own the most amount of that master recording as you possibly can. She has certainly raised awareness, but yeah, all of her music is on the streaming platforms. I would pick Lil Nas X as well. ", Swift said that the Eras Tour would kick off on March 18, 2023, in Glendale, Arizona, and conclude on Aug. 5, 2023, in Los Angeles. I've done this SPECIFICALLY to improve the quality of my fans' experience by doing it myself with my team who care as much about my fans as I do," she wrote. It thinks the Switched on Pop TikTok account is an in-recovery smoker who is really into a bunch of very dated movie references. Now she has a massive fan base that she commands. Whats going to happen is your subscription is going to get pooled together with all of the other subscriptions, all of the other listeners, and all of their listening. Well, this is the thing. Welcome to the business show, Charlie. That turned into a weird interstitial revenue moment for the industry. Its all out there. Ill bring this back to Taylor Swift, because she did live through these eras. If you are doing well later in your career, you might say to the label, Hey, before I renegotiate a deal with you, I would like to own my masters not only of my current catalog, but also my back catalog, because all my fans still listen to all of that music. Many artists will do this, renegotiate their deals, get better rights, and so on. The singer commented on the issue on her Instagram story on Friday, saying that . There is some concern that people are only listening to music on TikTok, and that they need to listen to the really fast, sped-up version instead of the real one which is a major trend we have reported about on Switched on Pop, because that is their engagement with music. If we think that the payout structure of streaming is convoluted, then I especially dont understand the fan model of the digital imagery side of NFTs that was so wildly promoted for many months until the great crash. Taylor Swift fans were disappointed in the experience with Ticketmaster. People want higher payouts per stream, and they want streams that are fair to artists and actually connected to their subscription. So the person who took that bad record deal in the past, who does have the right to the songwriting, can re-record it and make more money off that record. It was hard to get national or global distribution without a label. Its long gone. On Nov. 18, Swift spoke out about the fiasco in a message to her fans via her Instagram Story. There is opportunity for someone to do something very creative and disruptive.. Taylor Swift's Eras Tour is on track to sell $591 million in tickets leaving Ticketmaster with a relative pittance and buckets of bad PR . Since it cannot sell music in that one-to-one transaction, it is forever on the hunt for the $20. One thing that is very funny, as I look back on covering tech for the last 10 years, is how much user growth these companies achieved just by launching in additional countries. Its really easy to say to listeners, Hey, this thing doesnt make any sense, but that is the business model that we have all bought into, whether or not were conscious of it. The royalty rights werent necessarily better, and it just depends on the structure of any given persons deal, but things were much more assured. Its a part of their portfolio to help them sell phones, or to help them sell everything in cardboard boxes or whatever it might be. Swift hastwo shows scheduled in Pittsburghfor June 16 and June 17. Your job is to go make a ton of bets and hope that one of those will fund all of the bets that fail, and that it does so extremely well and makes you a lot of money. I want it in bigger places. Thats the baseline expectation I think all of us have of the metaverse. (Gareth Cattermole/TAS18/Getty Images for TAS / Getty Images), A Live Nation shareholder claimed 14 million people attempted to purchase Taylor Swift presale tickets on Tuesday ahead of the pop star's "The Eras Tour.". She withheld her back catalog from Spotify and Apple Music, but now theyre on Spotify and Apple Music. "This exceeded every expectation," Maffei explained. Taylor Swift fans are ushering in a new era for Ticketmaster. It is getting more difficult because there is more content on TikTok than there ever has been before, so it is becoming harder and harder to break out every single day. I think a lot of folks are looking to K-pop. Things that blow up on TikTok go to Spotify, and things that are streamed on Spotify then go onto Billboard charts. They wont stop being around me, and its TikTok. News / Jan 17, 2023 / 10:23 PM CST. That whole thing doesnt make sense. Get browser notifications for breaking news, live events, and exclusive reporting. High demand for Taylor Swift concert tickets led Ticketmaster to delay the West Coast pre-sale. (Matt Winkelmeyer/TAS18/Getty Images for TAS / Getty Images). Its tenuous. She has voiced concern about digital music and streaming for over a decade, and she has taken some very important actions to show herself as an underdog being exploited by big tech companies that just want to take all the money. From the listeners and the artists point of view, its like, What? "Well. Thats usually the best outcome. I dont mean to be a firebrand here and bet against it. I think that they were smart to chase what the people were doing. Which is NFTs. Obviously, with an NFT, you dont have to front the cost of a tour and you dont have to manufacture clocks. Politicians even got involved, with House Rep. Alexandria Ocasio-Cortez tweeting that Ticketmaster has become a "monopoly" after its merger with Live Nation and that "they need to be reigned in.". Its not the nicest ocean to swim in. Taylor Swift addressed the recent controversy surrounding Ticketmaster's handling of tickets for her upcoming Eras tour. She said she's "trying to figure out how the situation can be improved moving forward. People arent getting paid enough. When there is no competition to incentivize better services and fair prices, we all suffer the consequences.". Now before we completely turned to streaming, the revenue model for touring and all the other stuff that artists did was inverted at that time. She said she's "trying to figure out how the situation can be improved moving forward. As I said, if youre the rights-holder, if youre the label or if you own the master recording, there is a lot of money to be made. Just to put a pin in it, highlight it, circle it, bold, italic, and underline that inversion. She is the centerpiece of actual demand from a very passionate fan base, and instead of pointing that fan bases demand at merch or whatever, she points it at music making. A second presale for Swift tickets set to begin at 2 p.m. this afternoon has now been rescheduled for the same time tomorrow. Its all the best stuff. Ticketmaster has canceled the public sale of Taylor Swift's "The Eras Tour" after high demand in the pre-sales. She just wont stop. First published on November 18, 2022 / 1:42 PM. I also think the mathematics of the model get really weird once youre talking about share of listening on a global basis. How much of that money went to her as the artist, in general? Legal Statement. Swift said she hopes that she can provide more opportunities in the future for all of her fans who weren't able to get tickets to the tour. There was maybe a simplicity, a clarity, to how the business worked. Barfuss said she also tried the following day for the Capital One presale event, only to have my card declined because SeatGeek had charged over 40 transactions totaling $14,286.70 the day before. We have to see how big your TikTok is before we ever sign the deal.. She is unusual in that the length of her career spans from the end of the CD era into the streaming era. When I think of the promise of the Metaverse, what I think about is a private equity firm collecting royalty checks on streaming Neil Youngs back catalog to me. That is not at all how it works. A general sale was then planned for Nov. 18 for fans who didn't receive a Verified Fan code or have a Capital One card. That is going to be very, very lucrative for her. It feels like what probably needs to happen is subscription prices need to go up, there has to be massive cost-cutting, and there has to be user growth and diversification of business which again, I dont think music is a tech business. It's going to happen," Swift said when asked by the host, adding, "We will do it and it will be great.". Fourteen million people attempted to buy Taylor Swift pre-sale tickets on Tuesday, the CEO of Ticketmaster's largest shareholder has claimed. When you start getting into the number of people who are actually getting wealthy off of the streaming model, its a very, very small, elite group of people that get to have a successful music career. Image source: taylorswift. (Fox News Digital / Fox News), Many fans sat in the Ticketmaster queue and were told they would need to start the process over. You had a whole different set of distributors, given that there were physical goods, but most of them have shut down. The expectation from the fans now is that youre going to mount a spectacle. Taylor Swift has mastered this inversion, creating demand for her actual physical albums, merch, and her tours. The way you make more money is often either by getting your stuff to more people or by being some middleman who gets a better, stronger contract. It seems the only option is to go find radical alternatives and get into the world of crypto in order to survive in music. So yes, there are other breakout stars, and there are more and more of them every single day. Its very possible that someone might need this company because with music, to your point, you cant bet against the internet. However, Maffei defended the Live Nation and Ticketmaster merger. Youre already worth a trillion dollars. So when everybody wants to do that at the exact same time, all of the venues and all the promoters are now in a place where I mean, I would book Harry Styles for 30 years of residency or put Taylor Swift on tour forever if I were Ticketmaster, because there is so much potential revenue to be made off of ticketing fees in those scenarios. Bad record contract or not, you still spent $20 and the artist and their label can now fight over how much of that $20 they get. Im so sorry. The New York Times reported that the Justice Department was looking into whether Live Nation Entertainment, the parent company for Ticketmaster, has abused its power in the music industry. Taylor Swift Swift fans already know that this ticketing for the Eras Tour has been a nightmare and Ticketmaster has already given up on trying to fix it. A lot of her early records were released on CD, but by Red, there was a lot of pressure to put things on streaming. Tickets for the Era tour were first available to purchase on Nov. 15 at 10 a.m. local venue time for the lucky 1.5 million fans who received Verified Fan codes. Santigold, Shawn Mendes, Animal Collective, theyre all complaining like, This is too much. I mean, its like the bigger internet story, in that you can find more interesting, beautiful, and special little things. They got everything for free. She didnt want to participate in that model. Ticketmaster crashed when demand was higher than anybody behind the sales seemingly prepared for, which has resulted in a lot of frustration that fans haven't been afraid to share in the days since. I am here for it. At the request of Swift's team, the ticket seller said on Monday that . The publishing royalties were smaller then, but you got them for every single song, whereas today, you only get publishing royalties when someone actually listens to a song. She certainly wants to own this asset for the amount of money that can be made in streaming. Swift said there was "a multitude of reasons" why people had "such a hard time trying to get tickets" and is trying to figure out how to "improve" the disastrous rollout moving forward. A Live Nation shareholder claimed 14 million people attempted to purchase Taylor Swift presale tickets on Tuesday ahead of the pop star's "The Eras Tour." The tour, which will be a "journey through the musical eras" of Swift's career, is set to kick off next March in Arizona. Walk us through why Taylor wants to re-record her songs, and how this connects to the big catalog sales were seeing from artists like Neil Young, and there was a report about Dr Dre over the weekend. Its happening at Netflix. Its not just which artists you listened to, its how much you listened. everything else your concert tickets, your merch, your NFTs, whatever it is. If and when virtual reality becomes a compelling, mainstream product for many, many people, music will certainly be at the centerpiece . He is a master of the platforms, and he makes compelling and well-produced content. Even before ticket sales kicked off, the demand for Swift's upcoming tour was high so much so that the Midnights singer added an . Charlie, I think the algorithm might be better than you think. Thank you for wanting to be there. It used to be that people spent $20 on an album, and if we sold a lot of albums, then we made a lot of money. Where is Groove? Shes doing things that are pro-artist and pro-songwriter, but they are a bit more on the margins. Burn. in commercials. We have to add some stipulations before we begin a conversation on Taylor Swift. Shes in her contract negotiations with Universal, and made sure that part of Universals ownership with Spotify will eventually distribute out to artists if they were to sell it. Probably the most effective thing that she has done is wage this ongoing war to raise awareness that this whole thing is not fair, such that maybe when you go to listen while youre streaming, you still have a little bit of that ick feeling you might have had if you were on Napster 20 years ago like, I dont know if I should be doing this. Of course its legal now, but she has helped us question exactly how ethical it is when there is so much exploitation. A report from our colleagues at Vox showed that less than 10 percent of those artists that broke out on TikTok in the 2020 window have gone on to create a successful touring career with people showing up and buying tickets. Its the only way that you can hear these songs. I recognize Im a dinosaur and thats fine. Thats all flipped now. To be fair, the big knock on the music industry during the CD era was that CDs were full of filler tracks in order to make them look like a better value than they were. There was a better option. Its something that you already briefly mentioned, which is that people are developing their own audiences before they ever go to a label and sign a deal. The price of fuel is an increasing cost. Its the same one. If so, I think this is where all the hedge funds buying up these music catalogs will have been overwhelmingly right, and they will shove it in our faces and say, Look, this stuff was worth a hundred times more than what you thought it was, because when youre in these virtual worlds, all you want to do is have some great background music going on. Unless that all just gets written by AIs, then maybe not. You pay them the fee, and then you have access to an all-you-can-eat buffet of all the music in the world. I mean, depending on what happens in the stock market in the coming year, I think its very possible that they become an acquisition target for a tech company that needs a streamer. "I love music, and I love live music even more. It gets proven out in Europe over time. How did that war play out in the beginning? How did Spotify do at that moment? Here's Everything to Know. Thats a whole other show that we can get to some other time. Taylor Swift released her first album in 2006. . I actually want to instruct the listener. It was just three years later that streaming became the predominant revenue source for recordings. Mutual Fund and ETF data provided byRefinitiv Lipper. I feel like Ticketmaster completely screwed up on this one. "We had 14 million people hit the site including bots, another story, which are not supposed to be there and despite all the challenges and the breakdowns, we did sell over 2 million tickets that day.". It literally is the same. The last thing I want is the Fleetwood Mac army coming for me. ", Swift concluded her note with a sign-off to her fans who weren't able to get tickets: "All I can say is that my hope is to provide more opportunities for us to all get together and sing these songs. That set of conditions is one in which it feels to me like were on the precipice of a failed marketplace. A few days later, Swift confirmed she was going back on tour in 2023. What Spotify is going to figure out is how much money came in from all of those subscriptions every single time period, and then theyre going to take that and divide it by all of the listening of everybody, such that Taylor Swift is going to get paid based on, Does she command the highest amount of listening on Spotify overall? Nilay, I know you love Guns N Roses. Where is Zune? Certainly, BTS fans are really upset that Ticketmaster is getting an antitrust look at this moment from Taylor Swift sales when they have been complaining about the same issues for many years. Apple Music is going to be fine because the iPhone is fine, right? Copyright 2023 CBS Interactive Inc. All rights reserved. For Spotify and all the other streamers, its not great, because it means you cant control your costs. In the CD era, you wanted to buy a greatest hits record because it was all killer, no filler, right? You understand the value exchange there, even if the label is taking too much money. Given the success of Midnights, Swift's overall popularity and the fact that the singer-songwriter's previous tour had been canceled due to the pandemic, Eras was immediately projected to be the hottest ticket of the year. Surely. She wanted to get better terms, and she was able to use her clout to bring a lot of attention to areas where other artists were also unhappy about some of these streaming arrangements. The marketplace of music is strange, in that the consumers are pretty happy, the distributors are doing great, and the suppliers are extremely unhappy in general. But culturally? Its like, Thats what I call music. We were five years into the iTunes era at that point. Its very challenging to be able to make a living without streaming hundreds of thousands of songs. You kept more of your revenues if you own your music, youre always better off but it was much more challenging as an independent. There are so many robot nursery rhymes that go viral on TikTok and then they kind of go nowhere. Tickets, $40-$146, Seat Geek. The company said the cancelation was triggered by unprecedented demand, with more than 3.5 million people pre-registered to get an access code for purchasing tickets. The master recording represents the largest majority of the revenue in streaming, as it did in the physical goods era as well. ", Swift said Friday that the controversy occurred because of a "multitude of reasons," and suggested that the blame for the situation falls on Ticketmaster. One is the sound recording, called the master, which Taylor wants to own. I want to sell my TS Eras tickets here on stubhub. According to documents obtained by Deadline, Live Nation Entertainment is being accused of violating the state's Cartwright Act and Unfair Competition Law, fraud, misrepresentation and fraudulent inducement. Obviously, young Taylor Swift was going to want to have a great record deal so that her music could end up in every single store and car stereo. Her career is definitely a good case study across the last almost 20 years. The first leg of the tour will be in stadiums across the US, with international dates to be announced as soon as we can!" The company said the cancelation was triggered by unprecedented demand, with more than 3.5 million people pre-registered to get an access code for purchasing tickets. On November 15, 2022, the first day of pre-sale of tickets to verified fans for the US leg of the Eras Tour (2023) by American singer-songwriter Taylor Swift, Ticketmaster's official website crashed following "historically unprecedented demand with millions showing up", halting the pre-sale. All presale codes and links sent via text will still work at that time, they said. Google does not organize the worlds information and make it universally accessible. Vinyl is a small but meaningfully growing share of the music revenue pie. They cant control their costs. We want to look at how many Instagram or Twitter followers you have. If you contributed to an album, then you were paid out for someone buying the whole thing, even if you only contributed one song to it. There are still cracks in the model, right? Its truly amazing that 2.4 million people got tickets, but it really pisses me off that a lot of them feel like they went through several bear attacks to get them., 2023 NYP Holdings, Inc. All Rights Reserved, Eminem, Taylor Swift, BTS and more donate items to MusiCares Charity Relief Auction, Taylor Swift is roasted and toasted on a Pop-Tart, Taylor Swift shocks fans with first live performance of Anti-Hero, EmRata curses Ellen DeGeneres after Taylor Swift interview resurfaces, The mega ticket marketplace has apologized. To get national or global distribution without a label / 10:23 PM CST been replaced by distributors. 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