To the people of the world, from OK Go:

This week we released a new album, and it’s our best yet. We also released a new video – the second for this record – for a song called This Too Shall Pass, and you can watch it here. We hope you’ll like it and comment on it and pass the link along to your friends and do that wonderful thing that that you do when you’re fond of something, share it. We want you to stick it on your web page, post it on your wall, and embed it everywhere you can think of.

Unfortunately, as of now you can’t embed diddlycrap. And depending on where you are in the world, you might not even be able to watch it.

We’ve been flooded with complaints recently because our YouTube videos can’t be embedded on websites, and in certain countries can’t be seen at all. And we want you to know: we hear you, and we’re sorry. We wish there was something we could do. Believe us, we want you to pass our videos around more than you do, but, crazy as it may seem, it’s now far harder for bands to make videos accessible online than it was four years ago.

See, here’s the deal. The recordings and the videos we make are owned by a record label, EMI. The label fronts the money for us to make recordings – for this album they paid for us to spend a few months with one of the world’s best producers in a converted barn in Amish country wringing our souls and playing tympani and twiddling knobs – and they put up most of the cash that it takes to distribute and promote our albums, including the costs of pressing CDs, advertising, and making videos. We make our videos ourselves, and we keep them dirt cheap, but still, it all adds up, and it adds up to a great deal more than we have in our bank account, which is why we have a record label in the first place.

Fifteen years ago, when the terms of contracts like ours were dreamt up, a major label could record two cats fighting in a bag and three months later they’d have a hit. No more. People of the world, there has been a revolution. You no longer give a shit what major labels want you to listen to (good job, world!), and you no longer spend money actually buying the music you listen to (perhaps not so good job, world). So the money that used to flow through the music business has slowed to a trickle, and every label, large or small, is scrambling to catch every last drop. You can’t blame them; they need new shoes, just like everybody else. And musicians need them to survive so we can use them as banks. Even bands like us who do most of our own promotion still need them to write checks every once in a while.

But where are they gonna find money if no one buys music? One target is radio stations (there’s lots of articles out there. here’s one). And another is our friend The Internutz. As you’ve no doubt noticed, sites like YouTube, MySpace, and Blahzayblahblah.cn run ads on copyrighted content. Back when Young MC’s second album (the one that didn’t have Bust A Move on it) could go Gold without a second thought, labels would’ve considered these sites primarily promotional partners like they did with MTV, but times have changed. The labels are hurting and they need every penny they can find, so they’ve demanded a piece of the action. They got all huffy a couple years ago and threatened all sorts of legal terror and eventually all four majors struck deals with YouTube which pay them tiny, tiny sums of money every time one of their videos gets played. Seems like a fair enough solution, right? YouTube gets to keep the content, and the labels get some income.

The catch: the software that pays out those tiny sums doesn’t pay if a video is embedded. This means our label doesn’t get their hard-won share of the pie if our video is played on your blog, so (surprise, surprise) they won’t let us be on your blog. And, voilá: four years after we posted our first homemade videos to YouTube and they spread across the globe faster than swine flu, making our bassist’s glasses recognizable to 70-year-olds in Wichita and 5-year-olds in Seoul and eventually turning a tidy little profit for EMI, we’re – unbelievably – stuck in the position of arguing with our own label about the merits of having our videos be easily shared. It’s like the world has gone backwards.

Let’s take a wider view for a second. What we’re really talking about here is the shift in the way we think about music. We’re stuck between two worlds: the world of ten years ago, where music was privately owned in discreet little chunks (CDs), and a new one that seems to be emerging, where music is universally publicly accessible. The thing is, only one of these worlds has a (somewhat) stable system in place for funding music and all of its associated nuts-and-bolts logistics, and, even if it were possible, none of us would willingly return to that world. Aside from the smug assholes who ran labels, who’d want a system where a handful of corporate overlords shove crap down our throats? All the same, if music is going to be more than a hobby, someone, literally, has to pay the piper. So we’ve got this ridiculous situation where the machinery of the old system is frantically trying to contort and reshape and rewire itself to run without actually selling music. It’s like a car trying to figure out how to run without gas, or a fish trying to learn to breath air.

So what’s there to do? On the macro level, well, who the hell knows? There are a lot of interesting ideas out there, but this is not the place to get into them. As for our specific roadblock with the video embedding, the obvious solution is for YouTube to work out its software so it allow labels to monetize their videos, wherever on the Internet or the globe they’re being accessed. That’ll surely happen before too long because there’s plenty of money to be made, but it’s more complicated than it looks at first glance. Advertisers aren’t too keen on paying for ads when they don’t know where the ads will appear (“Dear users of FoxxxyPregnantMILFS.com, try Gerber’s new low-lactose formula!”), so there are a lot of hurdles to get over.

In the meantime, the only thing OK Go can do is to upload our videos to sites that allow for embedding, like MySpace and Vimeo. We do that already, but it stings a little. Not only does it cannibalize our own numbers (it tends to do our business more good to get 40 million hits on one site than 1 million hits on 40 sites), but, as you can imagine, we feel a lot of allegiance to the fine people at YouTube. They’ve been good to us, and what they want is what we want: lots of people to see our videos. When push comes to shove, however, we like our fans more, which is why you can take the code at the bottom of this email and embed the “This Too Shall Pass” video all over the Internet.

With or without this embedding problem, we’ll never get 50 zillion views on a YouTube video again. That moment – the dawn of internet video – is gone. The internet isn’t as anarchic as it was then. Now there are Madison Avenue firms that specialize in “viral marketing” and the success of our videos is now taught in business school. But here’s a secret: zillions of hits was never the point. We’re a rock band, and it’s a great gig. Not just because we get to snort drugs off the Queen of England (we do), but because the only thing we are expected to do is make cool stuff. We chase our craziest ideas for a living, and if sharing those ideas takes 40 websites instead of one, it doesn’t make too big a difference to us.

So, for now, here’s the bottom line: EMI won’t let us let you embed our YouTube videos. It’s a decision that bums us out. We’ve argued with them a lot about it, but we also understand why they’re doing it. They’re aware that their rules make it harder for people to watch and share our videos, but, while our duty is to our music and our fans, theirs is to their shareholders, and they believe they’re doing the right thing.

Here’s the source url for the Vimeo posting: http://vimeo.com/8718627

Go forth and put it everywhere, please. And buy our album. It’s great.

Yours Truly,

Damian (on behalf of OK Go)

by Tim Quirk
reposted from his band’s blog, www.toomuchjoy.com

I got something in the mail last week I’d been wanting for years: a Too Much Joy royalty statement from Warner Brothers that finally included our digital earnings. Though our catalog has been out of print physically since the late-1990s, the three albums we released on Giant/WB have been available digitally for about five years. Yet the royalty statements I received every six months kept insisting we had zero income, and our unrecouped balance ($395,277.18!)* stubbornly remained the same.

Now, I don’t ever expect that unrecouped balance to turn into a positive number, but since the band had been seeing thousands of dollars in digital royalties each year from IODA for the four indie albums we control ourselves, I figured five years’ worth of digital income from our far more popular major label albums would at least make a small dent in the figure. Our IODA royalties during that time had totaled about $12,000 – not a princely sum, but enough to suggest that the total haul over the same period from our major label material should be at least that much, if not two to five times more. Even with the band receiving only a percentage of the major label take, getting our unrecouped balance below $375,000 seemed reasonable, and knocking it closer to -$350,000 wasn’t out of the question.

So I was naively excited when I opened the envelope. And my answer was right there on the first page. In five years, our three albums earned us a grand total of…

$62.47

What the f**k?

I mean, we all know that major labels are supposed to be venal masters of hiding money from artists, but they’re also supposed to be good at it, right? This figure wasn’t insulting because it was so small, it was insulting because it was so stupid.

Why It Was So Stupid

Here’s the thing: I work at Rhapsody. I know what we pay Warner Bros. for every stream and download, and I can look up exactly how many plays and downloads we’ve paid them for each TMJ tune that Warner controls. Moreover, Warner Bros. knows this, as my gig at Rhapsody is the only reason I was able to get them to add my digital royalties to my statement in the first place. For years I’d been pestering the label, but I hadn’t gotten anywhere till I was on a panel with a reasonably big wig in Warner Music Group’s business affairs team about a year ago

The panel took place at a legal conference, and focused on digital music and the crisis facing the record industry**. As you do at these things, the other panelists and I gathered for breakfast a couple hours before our session began, to discuss what topics we should address. Peter Jenner, who manages Billy Bragg and has been a needed gadfly for many years at events like these, wanted to discuss the little-understood fact that digital music services frequently pay labels advances in the tens of millions of dollars for access to their catalogs, and it’s unclear how (or if) that money is ever shared with artists.

I agreed that was a big issue, but said I had more immediate and mundane concerns, such as the fact that Warner wouldn’t even report my band’s iTunes sales to me.

The business affairs guy (who I am calling “the business affairs guy” rather than naming because he did me a favor by finally getting the digital royalties added to my statement, and I am grateful for that and don’t want this to sound like I’m attacking him personally, even though it’s about to seem like I am) said that it was complicated connecting Warner’s digital royalty payments to their existing accounting mechanisms, and that since my band was unrecouped they had “to take care of R.E.M. and the Red Hot Chili Peppers first.”

That kind of pissed me off. On the one hand, yeah, my band’s unrecouped and is unlikely ever to reach the point where Warner actually has to cut us a royalty check. On the other hand, though, they are contractually obligated to report what revenue they receive in our name, and, having helped build a database that tracks how much Rhapsody owes whom for what music gets played, I’m well aware of what is and isn’t complicated about doing so. It’s not something you have to build over and over again for each artist. It’s something you build once. It takes a while, and it can be expensive, and sometimes you make honest mistakes, but it’s not rocket science. Hell, it’s not even algebra! It’s just simple math.

I knew that each online service was reporting every download, and every play, for every track, to thousands of labels (more labels, I’m guessing, than Warner has artists to report to). And I also knew that IODA was able to tell me exactly how much money my band earned the previous month from Amazon ($11.05), Verizon (74 cents), Nokia (11 cents), MySpace (4 sad cents) and many more. I didn’t understand why Warner wasn’t reporting similar information back to my band – and if they weren’t doing it for Too Much Joy, I assumed they weren’t doing it for other artists.

To his credit, the business affairs guy told me he understood my point, and promised he’d pursue the matter internally on my behalf – which he did. It just took 13 months to get the results, which were (predictably, perhaps) ridiculous.

The sad thing is I don’t even think Warner is deliberately trying to screw TMJ and the hundreds of other also-rans and almost-weres they’ve signed over the years. The reality is more boring, but also more depressing. Like I said, they don’t actually owe us any money. But that’s what’s so weird about this, to me: they have the ability to tell the truth, and doing so won’t cost them anything.

They just can’t be bothered. They don’t care, because they don’t have to.

“$10,000 Is Nothing”

An interlude, here. Back in 1992, when TMJ was still a going concern and even the label thought maybe we’d join the hallowed company of recouped bands one day, Warner made a $10,000 accounting error on our statement (in their favor, naturally). When I caught this mistake, and brought it to the attention of someone with the power to correct it, he wasn’t just befuddled by my anger – he laughed at it. “$10,000 is nothing!” he chuckled.

If you’re like most people – especially people in unrecouped bands – “nothing” is not a word you ever use in conjunction with a figure like “$10,000,” but he seemed oblivious to that. “It’s a rounding error. It happens all the time. Why are you so worked up?”

These days I work for a reasonably large corporation myself, and, sadly, I understand exactly what the guy meant. When your revenues (and your expenses) are in the hundreds of millions of dollars, $10,000 mistakes are common, if undesirable.

I still think he was a jackass, though, and that sentence continues to haunt me. Because $10,000 might have been nothing to him, but it was clearly something to me. And his inability to take it seriously – to put himself in my place, just for the length of our phone call – suggested that people who care about $10,000 mistakes, and the principles of things, like, say, honoring contracts even when you don’t have to, are the real idiots.

As you may have divined by this point, I am conflicted about whether I am actually being a petty jerk by pursuing this, or whether labels just thrive on making fools like me feel like petty jerks. People in the record industry are very good at making bands believe they deserve the hundreds of thousands (or sometimes millions) of dollars labels advance the musicians when they’re first signed, and even better at convincing those same musicians it’s the bands’ fault when those advances aren’t recouped (the last thing $10,000-Is-Nothing-Man yelled at me before he hung up was, “Too Much Joy never earned us shit!”*** as though that fact somehow negated their obligation to account honestly).

I don’t want to live in $10,000-Is-Nothing-Man’s world. But I do. We all do. We have no choice.

The Boring Reality

Back to my ridiculous Warner Bros. statement. As I flipped through its ten pages (seriously, it took ten pages to detail the $62.47 of income), I realized that Warner wasn’t being evil, just careless and unconcerned – an impression I confirmed a few days later when I spoke to a guy in their Royalties and Licensing department I am going to call Danny.****

I asked Danny why there were no royalties at all listed from iTunes, and he said, “Huh. There are no domestic downloads on here at all. Only streams. And it has international downloads, but no international streams. I have no idea why.” I asked Danny why the statement only seemed to list tracks from two of the three albums Warner had released – an entire album was missing. He said they could only report back what the digital services had provided to them, and the services must not have reported any activity for those other songs. When I suggested that seemed unlikely – that having every track from two albums listed by over a dozen different services, but zero tracks from a third album listed by any seemed more like an error on Warner’s side, he said he’d look into it. As I asked more questions (Why do we get paid 50% of the income from all the tracks on one album, but only 35.7143% of the income from all the tracks on another? Why did 29 plays of a track on the late, lamented MusicMatch earn a total of 63 cents when 1,016 plays of the exact same track on MySpace earned only 23 cents?) he eventually got to the heart of the matter: “We don’t normally do this for unrecouped bands,” he said. “But, I was told you’d asked.”

It’s possible I’m projecting my own insecurities onto calm, patient Danny, but I’m pretty sure the subtext of that comment was the same thing I’d heard from $10,000-Is-Nothing-Man: all these figures were pointless, and I was kind of being a jerk by wasting their time asking about them. After all, they have the Red Hot Chili Peppers to deal with, and the label actually owes those guys money.

Danny may even be right. But there’s another possibility – one I don’t necessarily subscribe to, but one that could be avoided entirely by humoring pests like me. There’s a theory that labels and publishers deliberately avoid creating the transparent accounting systems today’s technology enables. Because accurately accounting to my silly little band would mean accurately accounting to the less silly bands that are recouped, and paying them more money as a result.

If that’s true (and I emphasize the if, because it’s equally possible that people everywhere, including major label accounting departments, are just dumb and lazy)*****, then there’s more than my pride and principles on the line when I ask Danny in Royalties and Licensing to answer my many questions. I don’t feel a burning need to make the Red Hot Chili Peppers any more money, but I wouldn’t mind doing my small part to get us all out of the sad world $10,000-Is-Nothing-Man inhabits.

So I will keep asking, even though I sometimes feel like a petty jerk for doing so.

I do not share this information out of a Steve Albini-esque desire to rail against the major label system (he already wrote the definitive rant, which you can find here if you want even more figures, and enjoy having those figures bracketed with cursing and insults). I’m simply explaining why I’m not embarrassed that I “owe” Warner Bros. almost $400,000. They didn’t make a lot of money off of Too Much Joy. But they didn’t lose any, either. So whenever you hear some label flak claiming 98% of the bands they sign lose money for the company, substitute the phrase “just don’t earn enough” for the word “lose.”

** The whole conference took place at a semi-swank hotel on the island of St. Thomas, which is a funny place to gather to talk about how to save the music business, but that would be a whole different diatribe.

*** This same dynamic works in reverse – I interviewed the Butthole Surfers for Raygun magazine back in the 1990s, and Gibby Haynes described the odd feeling of visiting Capitol records’ offices and hearing, “a bunch of people go, ‘Hey, man, be cool to these guys, they’re a recouped band.’ I heard that a bunch of times.”

**** Again, I am avoiding using his real name because he returned my call promptly, and patiently answered my many questions, which is behavior I want to encourage, so I have no desire to lambaste him publicly.

***** Of course, these two possibilities are not mutually exclusive – it is also possible that labels are evil and avaricious AND dumb and lazy, at the same time.

I reach for my gun every time I hear Orff’s ‘Carmina Burana’; and I hear it everywhere: TV, film, amateur videos on Youtube. I can’t think of a more pervasive piece of music utilized in media. Ever. Why is it? How is it? Yes, it’s an exhilarating composition with driving rhythms, bombast, and is widely accessible, given it was written in the 1930s. I just don’t understand the preeminent role it plays, how absolutely over saturated it has become. Gotta put baby to bed? Brahms ‘lullaby’. Gettin’ married? Wagner’s ‘wedding march’ (the actual wedding march from ‘Lohengrin’, at least). Need a musical solution for your action movie/horror movie/car commercial/etc.? Look no further, as ‘Carmina Burana’ can automatically connect with your target audience!

How does it connect? We’ve heard it all before, is how, as it omnipresent. The question really should be, how is it connecting? What is its connotive value? Since we’ve heard it before, wouldn’t something more unique work better? Isn’t ownership an issue? It’s your project, so why emulate and dilute? Get creative. Take a risk.

Leave ‘Carmina Burana’ to the concert hall, at least while the rest of us catch up.