{"id":3407,"date":"2014-02-13T00:00:00","date_gmt":"2014-02-12T23:00:00","guid":{"rendered":"http:\/\/srdevsite.soundreef.com\/music-rights-and-music-distribution-an-interview-with-timothy-trudeau-part-2\/"},"modified":"2021-05-07T12:49:27","modified_gmt":"2021-05-07T10:49:27","slug":"music-rights-and-music-distribution-an-interview-with-timothy-trudeau-part-2","status":"publish","type":"post","link":"https:\/\/www.soundreef.com\/en\/blog\/music-rights-and-music-distribution-an-interview-with-timothy-trudeau-part-2\/","title":{"rendered":"Music rights and music distribution: an interview with Timothy Trudeau: part 2"},"content":{"rendered":"

<\/p>\n

Tim Trudeau is CEO of <\/i>Syntax Creative. He
\nhas experience in all areas of the music industry \u2013 he started out as an
\nartist, and soon progressed to artist management, promoting other musicians and
\nbrand building. In the late \u201890s, a revolutionary distribution deal he made
\nmeant that his band Sackcloth Fashion could reach a national audience while
\nstill retaining all the rights to their music. By the time he was 25, Trudeau
\nwas the president of a record label that he co-founded. Many of the artists he
\nhelped launch are still touring full time and successful to this day.<\/i> Follow him on <\/i>Twitter<\/a> or <\/i>Facebook.<\/p>\n

In <\/i>part 1<\/a> of
\nour interview, he discussed Soundreef, how to sell music online, how the music
\nbusiness works and how to promote your music. In part 2, he moves on to music
\nroyalties, music distribution, and working with a collecting society.<\/i><\/p>\n

Division of royalties used to be based on there being a
\nphysical product to distribute. Trudeau has found that the move to digital has changed
\nthe way money is distributed.<\/p>\n

\u2018From my vantage point it has: we have more control over how
\nit\u2019s all working, we\u2019re seeing a lot more data than we ever saw before, we\u2019re
\nreceiving money faster than we\u2019ve ever received it before. With physical it was
\na lot of paper statements compiled together, and some accountant manually
\nprocessing it on their desk with a calculator and a ledger, and then stapling
\nthings together, mailing it to you.\u2019<\/p>\n

This has revolutionised the way artists get paid \u2013 Trudeau
\nsays the old way could work, although there was far more room for error than the updated system, which pushes people towards honesty and transparency. <\/p>\n

\u2018It doesn\u2019t mean that digital retailers and digital service
\nproviders can\u2019t lie about data, they build the technology in such a way to
\ntell the truth\u2026 if everything\u2019s programmed out right, in general, it\u2019s just not
\ngoing to have a lot of problems. It\u2019s going to be accurate. And so we\u2019re
\nfinding money faster.\u2019 <\/p>\n

Perhaps the biggest change, from a distributor\u2019s point of
\nview, is that they no longer need to deal with the costs and administration
\ninvolved in distributing a physical product. <\/p>\n

\u2018The physical component of music is extremely expensive\u2026 You
\nhave to figure in the cost of a fork lift, the fork lift operator. You have to
\nfigure whether to rent a warehouse. There are just tons of costs: the trucking
\nback and forth, the truck drivers and with digital, it\u2019s literally: here is a
\nfile that I am going to transfer from my computer to your computer. And yes,
\nthere\u2019s people involved still, and we have to pay them, but we have just
\ncompletely lowered the cost of doing music business.\u2019<\/p>\n

Many are sad about the demise of traditional formats, but
\nTrudeau sees them as being generally good.<\/p>\n

\u2018I\u2019m not opposed to it\u2026 I come from all sides of the music
\nbusiness, I\u2019ve been signed to a label as an artist, I\u2019ve owned a label and
\nsigned artists, I\u2019ve been a distributor doing deals with music stores, working
\nwith stores, having a store \u2013 I come from all sides of it, so I know there\u2019s a
\nlot of different opinions, depending on what side people come from, but for me,
\nI don\u2019t think that the digital space has cheapened music at all \u2013 I think it
\njust made it more honest.\u2019<\/p>\n

This is great news for artists, since it is sometimes
\nsuggested that the paper system left a lot of room for dishonesty \u2013 or at least
\nfuzzy calculations.<\/p>\n

\u2018Well right. You have sales calls are being charged by the
\nhour, and then you have \u2013 well I had \u2013 to take this music buyer out to dinner
\nand you can\u2019t really track all this stuff, but with digital, it\u2019s like: it
\ncosts this much to store it on a server, it costs this much to deliver it,
\nlet\u2019s say it costs about a quarter a track to deliver it to a store, and then
\nfrom then on, I mean, it\u2019s on them and they send reports and they send money,
\nso it\u2019s made it easier.\u2019 <\/p>\n

These are radical changes, making the market more accessible.<\/p>\n

\u2018With the push of a button, our music is available in the
\nentire world, and in the olden days \u2013 we\u2019re only talking ten years or more ago
\n\u2013 we had to sign with different distributors in different territories, and then
\nwe would have to go setup a bunch of CDs on a palette with customs forms filled out as well as international tax forms\u2026 Just to get CDs for sale, just to get
\nthem on the shelf in Australia, to get them on the shelf in Europe. Then after
\nthat was done, who knows if you would ever get paid.\u2019<\/p>\n

But getting paid isn\u2019t all that artists want. <\/p>\n

\u2018From an artist\u2019s standpoint, getting paid is important, but
\nalso there\u2019s a side of you that just wants the music available and just wants people to have access to it, and in the digital space that is finally possible. This
\nyear, there were countries I\u2019ve never even heard of that are purchasing music
\nthat I\u2019ve seen on reports now. That\u2019s to my shame \u2013 I should be learning more
\nabout geography \u2013 like the rest of my neighbours here in the United States.\u2019<\/p>\n

Trudeau has extensive experience of working with collecting societies<\/a> such
\nas ASCAP and BMI, but wonders how well they fit with the new digital model of
\nmusic distribution.<\/p>\n

\u2018They have their place. I\u2019m not sure what that place is any
\nmore\u2026 They do seem like they\u2019re always behind the eight ball and always reacting
\nand slowed down, so I get a statement from them about something that happened a
\nyear ago.\u2019 <\/p>\n

Payment from other sources seems to be a lot faster.<\/p>\n

\u2018Maybe we uploaded a video to YouTube and we got paid a
\nmonth later on what was happening there, so when we see the success in the form
\nof payment from YouTube we\u2019ve already moved on to our next thing that we\u2019re
\nworking on. We get a cheque from ASCAP or someone else and we\u2019re like \u201cOh yeah,
\nthat\u2019s right, that was fun when that happened two years ago.\u201d\u2019<\/p>\n

He suggests that collecting societies might have got caught
\nup in the same situation as other music institutions. <\/p>\n

\u2018I think they\u2019re in the same boat that the major labels are
\nin. At one point in time you had three or four companies controlling all of the
\nmusic business essentially, and of course they still are making money, they\u2019re
\nstill a huge part of the pie obviously. But you know, same with broadcasting
\nand a few companies that were sort of controlling all of that, so if you wanted
\nto broadcast music then you had to have a licence with one of these, or all of
\nthese companies. And it served its purpose, they were established for good
\nreasons. They were established because you did have people who were writing
\nsongs and absolutely getting stiffed from getting paid, so I think the original
\nintent was good, but 100 years later\u2026\u2019<\/p>\n

It sounds like it\u2019s quite difficult for them to keep up with
\nthe changes.<\/p>\n

\u2018One of the things our business does is \u201cfingerprinting\u201d. In
\nthe olden days people would manually survey some broadcasts and generate cue
\nsheets. They use that to create a base and then pay out writers and publishers
\noff of that. Of course independents were the last to be heard on the handful of
\nsurveyed stations. Since we\u2019ve been doing fingerprinting, you wouldn\u2019t believe
\nthe amount of stuff that is caught that is just never caught by the manual
\nprocess. It\u2019s either revealing something that\u2019s always been that way or, in
\ngeneral, we\u2019re all moving faster now and having a lot more outlets, and so PROs  are having to catch up and build technology\u2026 They
\nknow that that\u2019s where they need to head if they want to keep their writers and
\ntheir publishers happy.\u2019<\/p>\n

Sometimes collecting societies can get cut out entirely. <\/p>\n

\u2018We, as a publisher, did a direct deal with Google for
\nYouTube and there\u2019s really not a reason for us to wait for the PROs to get our
\nmoney when we can get it directly from Google. We get more by doing direct deals
\nand we don\u2019t have to wait and have such a huge portion taken out.\u2019<\/p>\n

Did he have any problems with the local collecting societies
\nyou were using when you registered music with Soundreef? <\/p>\n

\u2018I don\u2019t remember whether that happened because we get so
\nmany letters from collecting societies! Basically, we get them trying to slap
\nour hands and say, \u201cYou can\u2019t do a deal with them because\u2026\u201d. There was one
\npoint in time where there was a huge amount of money that was, I guess, put
\nback, that they had already paid us out and then they said, \u201cSorry, we\u2019re going
\nto put a negative amount on your account because you did a direct deal with
\nthis person or that person.\u201d For us, we have it and it\u2019s there, and it fills in
\nsome gaps, but in reality, our business moves a little faster \u2013 we get the
\nletters and we just file it and we go, \u2018Okay.\u2019. We just keep it moving because
\nI don\u2019t have time to circle around things that are\u2026 where we\u2019re fighting over a
\nnickel here or a nickel there\u2026 I\u2019d rather be chasing after huge opportunities
\nthan doing that! They\u2019re the ones that are spending money on their legal team
\ndoing all that and if they\u2019ve got it figured out to where that nickel should
\nhave been split in half well, if they\u2019re going to spend money doing that then
\nhave it \u2013 it\u2019s yours.\u2019<\/p>\n

Although he avoids the finer details when dealing with his
\nown business, he understands why people think this is important.<\/p>\n

\u2018Again, people might disagree with that approach and say
\nit\u2019s the principle, and I don\u2019t necessarily disagree with that, it\u2019s just that
\nthere\u2019s only so many hours in the day, so for us, we like to just focus on
\nwhere the revenue is coming from, the major places, and then put our energy
\ninto that.\u2019<\/p>\n

Having seen so many radical changes in his work, what does
\nTrudeau see happening to the music business in the future?<\/p>\n

\u2018I\u2019m excited about the future \u2013 to me it looks good! You
\nhave people who complain that subscription models might be taking out retail
\nand so on and honestly, I\u2019m not buying a lot of the disgruntled artists or
\nmusic business people who are running around saying this is killing this
\nindustry and this is killing that because to me, the statements don\u2019t lie and
\nwe continue to have success at all these different places and I think\u2026 I\u2019m
\npleased!\u2019 <\/p>\n

In contrast to many in the music industry, Trudeau thinks
\nSpotify is definitely a good thing. <\/p>\n

\u2018You have a lot of people that are anti-Spotify or
\nanti-Deezer\u2026 To me, they\u2019ve been great partners because they\u2019re making
\nmusic available to places and people that normally wouldn\u2019t have purchased the
\nrecord anyway. To me it\u2019s extra money! To me \u2013 say what you want about Spotify,
\nI\u2019m not saying they\u2019re perfect or anything and that they haven\u2019t made various
\nmistakes – but in general, what we have seen is they are creating a brand new revenue
\nstream for us, from people that didn\u2019t buy music anyway, so not music
\ncollectors \u2013 people that don\u2019t care about holding something in there hand or
\nexploring the artwork. Also, they truly have found a way to monetise pirates. I
\nthink that\u2019s wonderful.\u2019<\/p>\n

For Trudeau, the future is definitely bright. \u2018I look
\nforward to more innovation, I look forward to what\u2019s after Spotify, what\u2019s
\nafter the thing that\u2019s after Spotify, I look forward to it because we\u2019re big
\nenough to survive, but we\u2019re small enough to manoeuvre through the changes in
\nthe industry.\u2019 <\/p>\n

This can be problem for bigger organisations. \u2018What I think
\nof major corporations is that too many of them are like the Titanic and we\u2019re
\nlike this speedboat and we see a giant iceberg ahead and we just go, \u201cOh, okay,
\ngo left,\u201d and it\u2019s no big deal.\u2019<\/p>\n

But the model isn\u2019t perfect yet \u2013 changes still need to be
\nmade. \u2018What I would like to see would be more innovation\u2026 you do have more
\ntechnical people that are in charge of things that maybe are a little more
\nemotional, or taste driven, and that can be complicated at times, but you have
\na lot of people who are left-brain, right-brain, working with the technical
\npeople who are coming from music. I look forward to that.\u2019<\/p>\n

How would he like to see things change for artists? <\/p>\n

\u2018Number one, I would love to see artists get more educated,
\nunderstanding things a bit better \u2013 stop thinking that everyone is always
\nstealing from them, \u2018cos it\u2019s not necessarily true.\u2019<\/p>\n

He also suggests there needs to be a bit more understanding about
\nhow much it takes to get an artist in front of a large audience. <\/p>\n

\u2018One artist performing one song on one stage, in front of
\npeople, you know to the consumer maybe it looks like this artist has worked
\ntheir butt off to do that, but they have no idea about the team of thirty or
\nmore people that work around the artist. So we have to make sure that everyone
\nis getting paid \u2013 not just the artist \u2013 for all their work. It\u2019s the same thing
\nwith movies: the most visible people are obviously the actors, but you have so
\nmany people who worked on building the set or doing the special effects or
\ndoing the editing or making the music. They\u2019re not always visible, and we need
\nthem to be getting a decent amount so that they can continue to do that.\u2019<\/p>\n

\u2018For us, we\u2019re mostly excited!\u2019<\/p>\n<\/p>\n

Based in San Diego
\nCalifornia, <\/i>Syntax Creative offers services ranging from administering
\ncopyrights, worldwide distribution, marketing and social strategy, creative
\ndirection, and launching a brand from concept to creation. Follow Timothy
\nTrudeau <\/i>on <\/i>Twitter<\/a> or <\/i>Facebook.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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