Interesting. But I have to respond the same way I responded to recent criticism that Google received when they asked artist to contribute free themes for Chrome: the answer can only be found in the answer. If Microsoft and Google can identify an adequate, or even superior, supplier then they win. Pure and simple.
Markets are multifaceted, and sometimes the buyer is uniquely positioned to expand its choices, and thereby reduce its costs. We shouldn't begrudge them. Because it remains an arms' length transaction.
You say "devalue" but arrival at a cash price is only one of many indicia of a song's value. For example, Guns N' Roses licensed one of it's songs to The Wrestler, when they could have charged much more. They did so with the film's budget concerns in mind. Did that devalue the song? I would say not.
There were other forms of value to be derived, not insignificantly the involvement of pals, the prestige of Aronfsky, the likelihood of positive buzz.
I've seen the counter-argument: Google and Microsoft are huge companies. Why are they extracting discount prices from artists who could badly use the money. That point is not without its appeal, but at that point we're talking about charity rather than a true market dynamic. We already know buyers on the order of Microsoft and Google can pay much less for identical quality. So what do we call the surplus?
A subsidy. Not fair compensation, but a donation.
HearIt_ClearIt
· 5 months ago
Annie,
I'm on your side on this. I think it's ridiculous that a company who's revenues are in the millions and a market cap around 213 billion dollars can only afford to license a song for $500. I've had licensing deals with indie bands get denied for all-in deals of more than $500. I think the songwriting community should boycott this contest. Microsoft is expecting this Bing campaign brings in millions of dollars in ad revenue and they're predicting a boost in ad dollars for the third quarter.
I just hope a cue sheet is submitted so the songwriter (and publisher if the winner has their own or signed with one) can reep the benefits of performance royalties. Hopefully the songwriters and publishers are affiliated with ASCAP, BMI or whichever performing rights society is present in their country (since it does not look like the contest is limited to the United States.
All Comments
Markets are multifaceted, and sometimes the buyer is uniquely positioned to expand its choices, and thereby reduce its costs. We shouldn't begrudge them. Because it remains an arms' length transaction.
You say "devalue" but arrival at a cash price is only one of many indicia of a song's value. For example, Guns N' Roses licensed one of it's songs to The Wrestler, when they could have charged much more. They did so with the film's budget concerns in mind. Did that devalue the song? I would say not.
There were other forms of value to be derived, not insignificantly the involvement of pals, the prestige of Aronfsky, the likelihood of positive buzz.
I've seen the counter-argument: Google and Microsoft are huge companies. Why are they extracting discount prices from artists who could badly use the money. That point is not without its appeal, but at that point we're talking about charity rather than a true market dynamic. We already know buyers on the order of Microsoft and Google can pay much less for identical quality. So what do we call the surplus?
A subsidy. Not fair compensation, but a donation.
I'm on your side on this. I think it's ridiculous that a company who's revenues are in the millions and a market cap around 213 billion dollars can only afford to license a song for $500. I've had licensing deals with indie bands get denied for all-in deals of more than $500. I think the songwriting community should boycott this contest. Microsoft is expecting this Bing campaign brings in millions of dollars in ad revenue and they're predicting a boost in ad dollars for the third quarter.
I just hope a cue sheet is submitted so the songwriter (and publisher if the winner has their own or signed with one) can reep the benefits of performance royalties. Hopefully the songwriters and publishers are affiliated with ASCAP, BMI or whichever performing rights society is present in their country (since it does not look like the contest is limited to the United States.