This bleak outlook for profitability among standalone digital music companies is a direct result of the high royalty rates incumbent upon startups who wish to license digital music for use in their apps. Whether you negotiate voluntary agreements or avail yourself of the existing compulsory licenses, y…
This very opening sentence gives the fault in your approach. The level of royalties is determined by the market and it is the only way composers and authors can live, at times barely survive. It is strange that you did not take into account that maybe the composers and authors could be partners in the startups. You only consider the music as a product to be exploited whereas it is the livelihood of human beings that do not want to be exploited because they are human beings and not objects. I am speaking in the name of the Syndicat National des Auteurs et des Compositeurs (SNAC-France).
Intellectual Property is one of the most important stakes of this century. You must have heard of Open-Innovation. If you acquire the intellectual property you need in proper terms, then the profit coming from what you add to it or develop from it is yours. There is no reason to treat artistic intellectual property differently. A startup has no power and no right to set the price of what they want to use and have to buy before using it. Do you in any way accuse the computers to be too expensive and to be the cause of your failure? Of course not. And yet you could since the computers you use are worth, at loading point in Shangha,. nothing but 20% of what you’ll pay for it. How come you do not protest against that speculation that sells you 500 dollars what is worth 100 dollars? That protest would be justified since it would expose a speculation that is out of reason and acceptability.