YouTube Red, Google’s new subscription streaming service offers consumers (and pirates) ad free content to watch (and steal).
YouTube has decided to enter the subscription streaming fray with the announcement yesterday of its new (ad-free) premium channel, YouTube Red. Despite the unfortunate choice of a name —similar to a rather notorious porn site that has both the word “red” and “tube” in its title– YouTube is hoping its new endeavor will catch some of the ad-free streaming mojo enjoyed by the popular subscription based offerings of Netflix, HULU, and Amazon Prime. And, like the others, YouTube will develop its own slate of “YouTube Originals.”
This isn’t the first time YouTube has taken steps to compete head-to-head against streaming services. Earlier this year, when it announced the launch of its subscription-based Music Key service (designed to compete with the likes of Spotify and Pandora) YouTube quickly earned reputation as a bully when indie musicians were threatened with losing access to the YouTube platform (and monetization) if they refused to agree to contract terms inferior to those offered major labels. The East Bay Express’s Sam Lefebvre wrote about YouTube’s aggressive tactics with musician Zoe Keating:
According to a transcript of the conversation provided by Keating, YouTube told the successful independent cellist and songwriter that, unless she opted in to YouTube’s new streaming service, Music Key, by signing a proposed contract without stipulation, her ability to earn ad revenue from the 9,696 videos featuring her songs, and their roughly 250,000 monthly views would be effectively revoked; her music would appear on Music Key anyway; and furthermore, YouTube would have to block her from uploading new material from her current account. —East Bay Express
YouTube Music Key remains in Beta
It’s worth noting that Music Key remains in the beta testing phase and apparently, for the moment, isn’t taking new sign ups. No firm date has been set for its public debut either. Guess all that licensing (asking permission) stuff is taking longer than expected eh?
With the announcement of its new service, charges that the company is, once again, using heavy-handed tactics against creators, been raised according to Tech Crunch. Apparently YouTube hasn’t changed its approach, despite the blowback from their smarmy Music Key negotiations with indie musicians:
YouTube made its top video creators an offer they literally couldn’t refuse, or they’d have their content disappear. Today YouTube confirmed that any “partner” creator who earns a cut of ad revenue but doesn’t agree to sign its revenue share deal for its new YouTube Red $9.99 ad-free subscription will have their videos hidden from public view on both the ad-supported and ad-free tiers. That includes videos by popular comedians, musicians, game commentators, and DIY instructors, though not the average person that uploads clips. —TechCrunch
YouTube also sticks to its script in offering sketchy details as to just how creators participating in this new service will be paid. According to the NY Times, YouTube officials implied that they were launching the service as a benefit to creators:
YouTube executives said they were introducing a subscription service in part to give a new revenue stream to the Internet-famous “creators,” the most popular of which already make millions of dollars a year in advertising revenue. —NY Times
What that really means, of course, is really more profit for YouTube. Not surprising–but lets not pretend they have an altruistic mission when it comes to motivations at company HQ.
Will YouTube eventually find success competing in the subscription marketplace with the likes of Netflix and Amazon? Perhaps–but it can be hard for a leopard to change its spots.
For the past ten years we’ve come to know YouTube as a pastiche of content, some original, some stolen, some mash-ups including porn, terrorist recruiting videos, murder videos, pirated movies and music, cute puppies….you name it, it’s there. Will the site’s faithful users take kindly to having to sign dubious contracts to upload their content?
While the site is hugely popular–and according to Digital Music News now accounts for 40% of music listening, but only 4% of music revenue–will people pay for something they’ve become accustomed to for free?
By creating its own original content, YouTube/Google moves into the world occupied by Hollywood and Television. Now one has to wonder how YouTube/Google will greet the swarms of pirates attracted to fresh content. I imagine it won’t be long before pirate sites around the globe will be offering up downloads, torrents and streams of YouTube Red content and I’m sure links to the stolen goods will be easy to find. Just use Google search…
Andrew Sampson, developer of Aurous, claims his app is legal and compares its functionality to that of Google’s search engine. Of course we all know what Google’s record has been when it comes to linking to pirated content. Sampson told Billboard:
We’re pulling content from sources that are licensed. From a legal standpoint, what we’re doing is okay. All files are streamed from legitimate sources — we don’t host anything. We only share cached results over peer-to-peer…
…There are a lot of sites saying we’re the Popcorn Time of music. That’s not accurate. We can play content from all around the web, and we use a BitTorrent-style technology to share links to content — but not that actual content itself.
The problem is that much of the content on those so-called legit sources is NOT actually licensed. There’s plenty of pirated content on YouTube (one of the sources Aurous uses). As noted in a piece by Rich McCormick in Verge.
In addition to potentially acceptable locations, such as official promotional streams and music videos, these services could also draw from sources that would upset record labels: tracks illegally uploaded to SoundCloud, for example, or leaked albums put on YouTube weeks before their street dates. Ads, too, could be stripped out by Aurous, denying labels extra cash per play.
Of course Aurous has its defenders. Predictably the Electronic Frontier Foundation got into the act with this unfortunate Tweet using the hashtag #SOPApower.
Per usual, folks at the EFF seem to believe there’s something noble in enabling online piracy. As it repeatedly demonstrates through its advocacy, the EFF’s view is that musicians don’t really have the right to earn money off their hard work.
I imagine, however, that those employed at the EFF to think up with these insightful Tweets appreciate the paychecks they earn. According to documents published on Pro Publica, in 2013 the EFF spent $3,402,997 on salaries for its 49 employees. (That averages out to nearly 70k per employee).
For the record the EFF’s total revenue in 2013 was a tidy $9,444,822. The organization’s net assets were listed over 15 million. I wonder what additional pro-artist advocacy the Content Creators Coalition could do with 15 million bucks?
Though I certainly don’t begrudge those at EFF the right to earn a decent living by Tweeting about SOPA (an act of Free Speech) plenty of musicians would undoubtedly be thrilled to earn a salary anywhere close to the EFF 70K average.
That the EFF continues to demonstrate such disdain for artists by defending a piracy app like Aurous right out of the gate isn’t surprising, but it’s also not a strategy based on public good. Rather, it’s a strategy that’s good for the tech industry–an industry built on the credo of take first, (maybe) ask permission later.
EFF’s SOPA perseveration
Because it does the bidding of the tech industry, it’s not entirely surprising to see that the EFF media team relies on raising the SOPA battle cry again and again. After all, SOPAs defeated is is generally considered the tech industry’s greatest lobbying win yet.
Let’s remember that SOPA was introduced in 2011. Last time I checked it’s 2015. Despite the fact SOPA is long dead and buried, EFF’s talking points continue to rely on SOPA as a worn out buzzword to rally the troops. I would caution the EFF powers that be to remember what happened to the boy who cried “wolf” too many times.
Ultimately there’s something unseemly in an organization that boasts net assets of over 15 million dollars working so hard to undermine artists’ (often meager) livelihoods. Taking down Aurous will NOT “break the internet.” What it will do is help protect the work of musicians so that they can earn a living wage through the legal distribution of the work.
The IP Awareness Foundation report on piracy demonstrates that an effective war against piracy is one fought on multiple fronts
Piracy rates decrease 4% overall
Some positive news on the piracy front from Australia in a report just released by the Intellectual Property Awareness Foundation. The study finds that Australian piracy rates (among those 18 to 64) have decreased 4% in the past year.
Following the report’s release some of the headlines focused on new streaming services like Netflix as the reason for the decrease, but IP Awareness Executive Director Lori Flekser says other factors like the high-profile Dallas Buyers Club lawsuit, and legislation allowing blocking of pirate sites and a soon-to-be-enforced requirement that ISPs send customers “copyright infringement” warnings if they download pirated content.
Flekser expressed the belief that to successfully fight online piracy, the battle needs to happen on multiple fronts:
Piracy has always needed a range of measures to tackle the problem as we all know there is no silver bullet. This fall in piracy rates is definitely largely attributable to the combination of the government’s new legislation, plus the ongoing efforts of the creative industries to continue delivering great content at accessible prices to Australian consumers and the work being done to educate consumers about the impact of copyright theft…
…Strong copyright laws are needed to ensure the vibrancy and growth of the creative sector which in turn contributes to the economy, provides jobs and stimulates local culture. Copyright facilitates innovation rather than hinders it.
Despite the positive trends found by the study, there’s also indications that so-called “persistent pirates” have dug in and are stealing at greater rates than in the past. Some key findings from the study include:
• 25% of Australian adults aged 18-64 pirate – a decrease from 29% in the previous year.
• Persistent pirates continue to maintain high levels of frequency with 40% claiming to be pirating more than they did 12 months ago.
• Those who have pirated are far more likely than those who have never pirated to be aware of anti-piracy initiatives such as the Copyright Amendment Bill 2015 (43% vs 24%), Dallas Buyers Club litigation (51% vs 42%) and proposed notification scheme (48% vs 32%).
• Streaming services show growth – from 26% in 2014 to 32% in 2015, with high levels of awareness of new services. 33% of respondents accessing a subscription service are taking advantage of a free trial, with 66% of those indicating their intention to take up a paid service in future.
• Of those who claim to be pirating less frequently, 33% identify legal alternatives as the main reason for declining piracy rates, while 63% cite other reasons including moral considerations (21% – feeling bad about pirating/acknowledging piracy is theft) or self-interest (16% – worrying about being caught or getting a virus) or no longer having time (13%)
Flekser also noted that education plays an important role in lowering piracy rates and she was quick to praise Australian government officials for their work in helping safeguard the rights of creators:
We applaud the leadership shown by Government in passing critical legislation, and the public discourse from Ministers Turnbull and Brandis, which has shone a light on this issue and given the creative industry the opportunity to have its say amidst the very vocal blogosphere and wide media coverage of a well intentioned but not always well-informed consumer advocacy campaign…
It’s always positive news to see piracy numbers decline anywhere in the world. And while it’s too early to predict where all the chips may fall, one hopes that U.S. lawmakers will look to Australia’s approach as a potential blueprint for designing a successful attack on piracy here.
Our representatives in Congress need to understand that taking legislative action against online piracy profiteers won’t break the internet, but it will help protect the livelihoods of American workers who work in a wide swath of creative industries.
As Wade Tyree wrote in a recent piece for The Hill, “The magic depends on us all, creators and audiences alike.”
Trans Pacific Partnership is good news for workers in America’s creative industries
Justice Department’s IP enforcement move and agreement reached in TPP talks
Some important news on the online piracy front today. First, it appears that the U.S. Justice Department announced a new “collaborative” strategy to tackle (global) online piracy. From the press release:
Attorney General Loretta E. Lynch announced today that the Justice Department will launch a new collaborative strategy to more closely partner with businesses in intellectual property enforcement efforts and will award over $3.2 million to ten jurisdictions to support state and local task forces in the training, prevention, enforcement and prosecution of intellectual property theft and infringement crimes.
“The digital age has revolutionized how we share information, store data, make purchases and develop products, requiring law enforcement to strengthen our defenses against cybercrime – one of my top priorities as Attorney General,” said Attorney General Lynch. “High-profile instances of hacking – even against large companies like Sony and Target – have demonstrated the seriousness of the threat all business face and have underscored the potential for sophisticated adversaries to inflict real and lasting harm.”
Lynch also announced “$3.2 million in grants to aid state and local law enforcement in addressing intellectual property crimes.” While online piracy and counterfeiting seems to be more of a global issue, these grants can help root out pirates and counterfeiters based here at home.
Since IPEP’s establishment in 2009, the department has invested nearly $14.8 million for 41 task forces across the country. These grants have supported the arrest of 3,522 individuals, the dismantling of 1,882 piracy or counterfeiting organizations and the seizure of $266,164,989 in counterfeit property, other property and currency in conjunction with IP enforcement operations.
The United States and 11 other Pacific Rim nations on Monday agreed to the largest regional trade accord in history, a potentially precedent-setting model for global commerce and worker standards that would tie together 40 percent of the world’s economy, from Canada and Chile to Japan and Australia. –NY Times
The agreement is not without its critics and still faces a tough battle for Congressional approval. For those concerned about copyright and piracy issues though, the pact seems to offer positive news. Given that online piracy knows no borders, the more that can be done to standardize international laws against content theft the better. The theft for profit eco-systemthat has wildly metastasized online because operates beyond the reaches of law enforcement may have finally met its match.
Strong and balanced IP standards are critical for driving innovation and protecting American jobs. TPP requires parties to:
Establish strong patentability standard, with appropriate limitations drawn from international commitments, to protect the jobs and solutions to global challenges generated by U.S. innovators in areas ranging from solar panels to smart manufacturing.
Adopt strong copyright protections – drawn from international norms – to respect the rights of creators and establish clear protection of works such as songs, movies, books, and computer software, and to facilitate the development of new business models for distributing creative content that keeps pace with evolving technology.
Include – for the first time – an obligation that requires Parties to continuously seek to achieve an appropriate balance in copyright systems through, among other things, exceptions and limitations, to copyright for legitimate purposes, such as criticism, comment, news reporting, teaching, scholarship, and research, and clarifies that exceptions and limitations are available for the digital environment
Establish copyright safe harbors for Internet Service Providers (ISPs) to develop their business, while also helping to address Internet copyright infringement in an effective manner. TPP includes no obligations on these ISPs to monitor content on their networks or systems, and provides for safeguards against abuse of such safe harbor systems.
As MPAA CEO Chris Dodd noted in a statement congratulating negotiators on their efforts, the TPP is particularly good news for Americans whose livelihoods come from work in the creative industries:
Enacting a high-standard TPP is an economic priority for the American motion picture and television industry, which registered nearly $16 billion in exports in 2013 and supports nearly two million jobs throughout all fifty states.
It’s too soon to tell what the result of either announcement will be, but multi-lateral action against this type of theft is long overdue. The internet is no longer in its infancy and it’s past time for some rational order be brought to an out of control, Wild West world of illegal commerce that undermines the viability of creators around the world.
Sandra Aistars now Clinical Professor & Senior Scholar & Director of Copyright Research & Policy of CPIP
I’d like to take a moment to thank Sandra for all her hard work on behalf on indie artists, filmmakers, musicians and more. Without her unwavering guidance these past few years, there’s no doubt in my mind that our rights as creators would have been further undermined. Working in the trenches in Washington, and being the target of anti-copyright activists online, is not an easy job, but it’s one which Sandra handed with professionalism and grace. I’m excited to see what she has planned for her new venture with George Mason University of Law and wish her all the best.
Mr.Kupferschmid seems like an excellent person to succeed Sandra. His background working on copyright issues in with both tech and creative interests make him well suited to lead the Copyright Alliance and be an influential advocate for creator’s rights in coming years:
Keith brings over two decades of experience in copyright law and policy. At SIIA, he represented and advised software and content companies on intellectual property policy, legal, and enforcement matters. He also supervised the Anti-Piracy Division, including managing anti-piracy staff, investigators and outside counsel, and working with federal and state government officials on civil and criminal piracy cases. Prior to that, he was an attorney at Finnegan, Henderson, Farabow, Garrett & Dunner, as well as at the US Patent and Trademark Office (USPTO), the Copyright Office, and the US Trade Representative (USTR).
These are crucial times in the fight to protect creative rights across the spectrum and Mr. Kupferschmid promises to work on behalf of creators across the spectrum, large and small, as he tackles a number of challenging copyright issues:
I am thrilled to be the new CEO of the Copyright Alliance…. Sandra did a tremendous job building the Alliance into a respected and thoughtful organization that effectively represents the copyright interests of all types and sizes of creators and innovators. As SVP of Intellectual Property for SIIA the past 16 and a half years I worked with SIIA’s tech companies—both large and small—as well as other stakeholders in the copyright, tech, and academic communities to develop amicable solutions to complex copyright policy and enforcement issues. I hope to use my experiences in the copyright and tech arenas to further build on the strong foundation established by Sandra.
I wish him well on his new journey and am looking forward to his efforts to build more bridges with indie artists across all disciplines.
Kim Dotcom’s Court Hearing Continues
In other news, Kim Dotcom’s extradition hearing in Auckland District Court continue this week in New Zealand with Crown prosecutor, Christine Gordon who is representing the United States, wrapping up her presentation as to why New Zealand should extradite the pirate site (Megaupload) founder to the U.S. to face charges that include racketeering, copyright infringement and money laundering. Gordon focused rewards paid to top infringers:
Gordon told a judge this week that after Dotcom launched Megaupload in 2005, it grew to become so popular that each day 50 million people used the site, sucking up 4 percent of all Internet traffic.
“This was a big fraud but conducted in a fairly simple manner…
Behind the scenes, the respondents admitted their business broke the law. Sometimes they enjoyed the fact they were making their money by breaking the law,” she said. “Sometimes they worried about protection, and pondered what action they should take to, and I’m quoting here Mr. Dotcom’s words, ‘counter the justice system.” –New Zealand Herald
#1 Our pirate pal Kim Dotcom is back in the news as a hearing for his extradition to the United States to face charges of copyright infringement, racketeering, and money laundering was held Monday in New Zealand:
Big car, big chair, big black outfit means a grand entrance at court for America’s target. –NZ Herald
#2 Copyright Reform Takes Center Stage in Nashville. It’s a chance for those who work in the music industry to make sure their voices are heard as members of the House Judiciary Committee come to town to talk copyright and two pieces of legislation close to the heart of those in Nashville, Two pieces of legislation championed in Nashville — the Songwriter Equity Act and the Fair Play Fair Pay Act.
As an indie film and broadcast journalism veteran, I'll share my perspectives on issues of interest to the creative community and beyond--Ellen Seidler
