Pandora, Muxtape and Royalties: tell us what you think

This past Wednesday, we had a great discussion on the ArtistDish about the recent news regarding Pandora and Muxtape (you'll be able to hear the entire podcast in a few days). It's definitely a complicated situation that's going to require time to sort out, coupled with creative solutions and compromises from both sides to solve, as similar situations are on the horizon, and no one has a monopoly on the solution.

So, I wanted to poll my readers to see what you all think about the issues and how to solve them. As a former musician that tried to make a living in a band, I'm definitely pro-artist, and an advocate for musicians and bands trying to earn money from their digital music, so I applaud Pandora for paying royalties to date. Not to mention, I'm a huge fan of Pandora, and I use their service everyday. I also really enjoyed using Muxtape.

But, I'm also a technologist developing a music tech company that I hope will be cash flow positive by the end of 2009. With that said, it seems like a potential conflict of interest could arise if music tech companies try to determine what royalties should be for artists (e.g. COGS as it relates to the cost of song plays relative to earnings from advertising). However, royalty decisions should also not be left for the RIAA, Congress and/or major labels/artists to determine on their own either.  Rather, I submit that the long tail of the music industry (i.e. independent musicians and bands) needs to come together and join the conversation as well - you can begin now:

The Ethics of Filesharing

Below are two really good videos on the ethics of filesharing. No matter which side of the argument you support (pro-artist/revenue model or pro-consumer/free model), these expert interviews are thought provoking, providing an intelligent discourse without emotional pleas from those that just want to have it their way. As I've stated before, there has to be a middle ground. Both videos come from Artists House Music, which is arguably the best site out there for indie musicians and I highly recommend you subscribe to their feeds.

The first video, an interview with Professor Russell Rains discuses the general ethical issues surrounding filesharing with an emphasis on the legality of filesharing.

The second one is with Lawrence Lessig, also an attorney and a professor, and the founder of Creative Commons. He discusses the pros and cons of filesharing. Note how he believes that filesharing is currently being misused and he does not support that kind of activity, but he also offers insight into a potential middle ground between utilizing P2P filesharing networks as a technology, while at the same time protecting the rights of the artists. I couldn't agree with him more, and I've been saying this for years, as that's what it will take to make it viable for both parties. While it's an older interview, it's still very good and applicable, and should be watched by all consumers and musicians:

IMHO, P2P as a technology will only continue to grow, but it may not remain free. As Professor Lessig alludes, P2P filesharing networks will become an integral part of the Internet, but there will also be built-in technology that will protect the rights of the artists - it's just a matter of time before that part of the equation is developed, and no, I'm not talking about DRM.

As always, I welcome your comments.