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Music label Numero Group opts out of iTunes Match

Chicago-based music label Numero Group is the first record label to publicly opt out of Apple's iTunes Match service, which lets users redownload any songs they have in their iTunes library to any device they own. In a short blog posting, Numero Group said that "we feel that a great risk is being taken by Apple and the major labels that have accepted the terms of this new product wholesale with not a thought beyond the 150M those so-called 'big four' will probably divide and pay to their top executives. By that, we mean that laws that protect compositions and copyrights for songs are, more or less, being trampled under these agreements."

In an interview with Ars Technica, Numero Group co-owner Rob Sevier explained that, for small record labels like his, there's not much benefit to allowing Numero tracks on iTunes match. Sevier told Ars that iTunes Match effectively "legitimizes" piracy and easily turns people into "pirates" for a one-time fee of $25. For a small record label like his, which may only sell 10,000 copies of a song, the potential for people to download pirated copies and then turn them into "legitimate" copies via iTunes Match isn't worth the risk. "We are primarily a physical goods company," Sevier said. "Because of that, we don't get too bogged down in bootlegging; we just can't stay up all night and worry about it. But for Apple to say that all your bootlegs are welcome, it just bothers us."

Sevier also discounts the notion that iTunes Match is a way for smaller labels to take part in revenue sharing, which would potentially make up for any illegal music matched on iTunes. He says that the potential revenue from iTunes Match won't make up for the increased rate of piracy, which could be as high as 1000 percent in his estimates. "It's not going to be enough to matter. I don't think that any of this will even filter down to artists. It doesn't matter what kind of label it is, it's just going to be an administrative mess dealing with all these micropayments. There's no way it's going to cover the hourly wage of someone working in the accounting department to even deal with."

Servier expects some of his customers to be unhappy about not being able to have their songs matched on iTunes, but he feels that someone needs to protect the smaller artists, songwriters, and producers. He also states that he could have quietly opted out of iTunes Match, but decided to blog about his decision in hopes that his decision will spur other labels in the industry to fully think out what joining iTunes Match may mean for the artists they represent.



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Chicago-based music label Numero Group is the first record label to publicly opt out of Apple's iTunes Match service, which lets users...
 

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Rob E.

I feel like I'm missing something. Seems like what they are opting out of is the ability to have their songs automatically matched and added to a user's iCloud account. The assumption is, it seems, that if you didn't buy the track through, you stole it. But even IF that were true, anyone paying for the match service can manually upload any non-matching tracks, right? So what they're really doing is adding a small, extra step for anyone who got their music from a non-iTunes source (legitimate or otherwise), and cutting themselves out of whatever (admittedly likely very small) amount of the iCloud fee that Apple is sharing with the labels. So an extra step for users, less money for them, and this addresses piracy how?

June 17 2011 at 10:35 AM Report abuse rate up rate down Reply
Erick E Watson

HEY REMEMBER WHEN NAPSTER WAS A BAD THING???

June 17 2011 at 7:47 AM Report abuse rate up rate down Reply
Mabhatter

The thing is that emusic and some others had this deal (more or less) for years... Then got told by " the industry" it was not possible and might count as "streaming" where they would have to pay more per extra download than they charged. A huge chunk of their main independent labels left? Then turned around and jumped ship to Apple?

I wonder how shops like emusic will play with Apple's stuff now? As much as I like the integration, I have a subscription to emusic for several years with hundreds of songs. I dont like Apple hijacking that model to lock everything to the phones.. Unless I can finally download stuff DIRECTLY to my library from other sites now.

June 16 2011 at 10:21 PM Report abuse rate up rate down Reply
hfwbr

This is fear-borne myopia. Labels have one of two choices: let piracy continue to eat at their revenue stream and have nothing to show for it, or come up with creative solutions like Match that at least give them some revenue to share.

$25 (per year, not a "one-time fee") may be as much as most pirates would or could spend on albums per year in a piracy-free world anyway, so it's not like the labels are losing much in the final analysis. If anything this is a play to restore some fiscal normalcy. It's short-sighted not to want to participate in that.

The other side of the coin is that pirates will continue to get more material than they're otherwise entitled to. That's really what's bugging Numero. That issue remains between the pirates and their consciences—and the law.

June 16 2011 at 9:41 PM Report abuse +1 rate up rate down Reply
Maccles

Sounds like someone tried to do a sweeter deal with Apple, and Apple just slapped him down and said - no you get the same deal as everyone else signed up for!

June 16 2011 at 8:40 PM Report abuse rate up rate down Reply
macron1

So what are they opting out of? My understanding of iTunes match was that if your song was not present in iTunes, it would just upload a copy from your library.

By this label "opting out" does it mean a song from this label wont be uploaded AT ALL, or i will i not be able to stream one of this labels songs until i upload my copy?

June 16 2011 at 8:26 PM Report abuse rate up rate down Reply
iHardlyKnewHer

So somebody correct me if I'm wrong, but this changes absolutely nothing from a user standpoint, correct? If a song match isn't found on iTunes Match (i.e. if it isn't from one of the labels that chooses to participate in the program) then a copy of the mp3 is actually uploaded to the server and you will still have access to the song through iCloud. So unless I'm not understanding something correctly, the only thing that opting out does is make sure that instead of Numero receiving a cut of the $150M, they will receive nothing. Sounds like a silly move to me.

June 16 2011 at 8:23 PM Report abuse rate up rate down Reply
cobaltage

iTunes Match has virtually no impact on small labels anyway, as far as I can see. In general, someone who listens primarily to unsigned artists or artists from small record labels is never going to sign up for iTunes Match to begin with. If they want, they can always upload their own audio files to one of the several cloud services.

The owner of this record label is smart to come out and make a stand against iTunes Match. It can only draw attention to his label while enabling him to make a statement about the recording industry, without hurting his label in the slightest. It's very appropriate to be skeptical of the big four recording companies and how they use "artist compensation" as a justification for protecting their own interests, while not necessarily cutting artists a check when it "retrieves lost revenue." In other words, it makes a lot of sense that someone who runs an indie label would be opposed in principle to the major corporate labels.

June 16 2011 at 8:19 PM Report abuse rate up rate down Reply
Akira Sezou

who???

June 16 2011 at 6:57 PM Report abuse rate up rate down Reply
SpinThis!

TUAW missed the beef of Sevier's complaint.

Sevier isn't blaming Apple; he's blaming current copyright laws. Publishing to iTunes doesn't automatically make you money, especially if the writer and publisher are not the same and he needs to pay other parties involved. It turns out he may end up paying more in mechanical royalties then he would have gotten from Apple's match service. Perfectly reasonable stance until the grey area is cleared up.

June 16 2011 at 6:54 PM Report abuse rate up rate down Reply
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