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AFM, Media Convergence and Performance Rights Part 2

In this five-part series, we look briefly at AFM’s origins, structure, media agreements, historical challenges from the rise of technology, disruption of established media business models, institutional stress from a new techno-economic paradigm, and opportunities for new money for musicians from performance rights. In part two below, we examine early efforts to organize and monetize media services, modern Federation media agreements, and the underlying pressures to lower standards.

The future of the Federation depends in part on its ability to bargain progressive media agreements despite global competitiveness and a burgeoning background of web-based, user-generated-content that has blurred the lines between broadcasting and other media across all elements of consumption. To understand what is happening now in music and media, we look to our past to remember who we are, where we came from, what we did, and to see where we go from here.

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Fort Worth Symphony Orchestra: Big Balls in Cowtown

The holiday season is a wonderful time of year for professional musicians—a time of anticipation. It means more gigs paying better money. It is a procession of company holiday parties, Christmas pageants, and concerts in houses of worship and concert halls. The spillover of holiday bustle into the live music bars and nightclubs, and the good cheer that builds from Thanksgiving week toward the revelry of New Year’s Eve, help musicians finish the year with more bread on the table.

For many of us, because our work—our music—has taken us to a better place both artistically and economically, we are optimistic about the year ahead.

Fast forward to Fort Worth, Texas, where this holiday season, musicians of the Fort Worth Symphony Orchestra (FWSO) are working under an expired contract and battling the town honchos’ flatfooted attempts to impose unjustified concessions, made to compensate for inept management and to quench the thirst for additional rent and a bigger cut of ticket sales by their landlord, the Nancy Lee and Perry R. Bass Performance Hall.

For FWSO musicians, the 2015 holiday season is playing out against a backdrop of uncertainty and in an atmosphere of animosity and bitterness, where management wants to force a 9% wage cut, on top of a 13.5% cut imposed in 2010. Other difficult situations are occurring with orchestras located in Hartford, Connecticut; Binghamton, New York; Grand Rapids, Michigan; and Fort Wayne, Indiana. But for me, because of my history in Fort Worth, the doings in Cowtown are personal.

Never mind that the Dallas-Fort Worth economic engine is revving despite a slump in oil prices. The area has added 400,000 jobs since the great recession. The DFW economy reached $440 billion in 2014, ranking sixth in the nation and outranking most countries in the world, trumped in gross product estimates by only 17 of the world’s 196 economies.

Sounds great, doesn’t it? Great for everybody, except for the musicians of the Fort Worth Symphony Orchestra. With all that money flying around, you wouldn’t think the town would load up and take aim at an incredible orchestra that is playing at the top of its game, would you? But that’s what they’re doing.

As with many disputes that have erupted recently with orchestras that are venue-specific, some money woes can be traced to the demands of the concert hall itself.

For FWSO, the answer lies somewhere in the netherworld between the company’s mythical financial tailspin (a $600,000 deficit is alleged) and its murky dealings over the occupancy expenses and operation of its rehearsal and concert venue, Bass Performance Hall. That venue’s stated mission is “to serve as a permanent home to major performing arts organizations of Fort Worth and as a premiere venue for other attractions so as to enhance the range, quality, and accessibility of cultural fare available to the public; to promulgate arts education; and to contribute to the cultural life of Fort Worth, Tarrant County, and the region.”

In Cowtown, when you talk the talk, you gotta walk the walk, except if you’re Bass Hall. The venue threw its mission statement in the toilet in 2009 when Texas Ballet Theater, a resident company, was permitted to dump FWSO as its pit orchestra and perform a six-week season to tape, including a tape made in China at a cost of $30,000. Was that cultural enhancement? Hardly. It was pure horse hockey. It cost FWSO a six-week pay cut.

Bass Hall was built in 1997-1998 on land donated by the Bass family at a cost of $74 million in private funds. In contrast, the Ballpark in Arlington cost $174 million. Today, Bass Hall total assets stand at $74 million. And the folks there always see to it that there is plenty of green to go around for the top hands’ salaries. President/CEO Dione Kennedy hauled off nearly $450,000 Texas buckaroos last year.

Against this background, the courageous members of the orchestra have chosen to do more than just bargain hard, while extending community outreach through social media. They are standing up and standing together, live and in-person, fighting management’s wrongheaded proposals by demanding that the company provide for the orchestra in a manner consistent with the artistic power they bring to every performance.

With the support of DFW Local 72-147, FWSO musicians have found innovative and effective new ways to demonstrate their resolve to oppose regression and deliver their message—GROWTH, NOT CUTS—directly to the audience and community.

Violist and negotiating committee chair Scott Jessup, flanked by his committee colleagues, surprised a Saturday night crowd October 24 when, immediately prior to the start of the performance, he read a statement that included the following:

“Going backward is not the Ft. Worth way and dishonors the legacy of one of our oldest cultural treasures. We ask you to stand with us to show our management that these musicians, and this city, deserve a world-class orchestra with a vision for our future that promotes GROWTH, NOT CUTS.”

A few days later, prior to a Friday evening concert, 60 FWSO musicians materialized in Sundance Square, a cluster of upscale eateries and shops adjacent to the venue, and delivered an impromptu flashmob performance of Barroso’s samba, “Brazil.” The demonstration brought the contract dispute front and center to Sundance shop owners and directly to the eyes and ears of consumers whose discretionary spending is vitally important to the neighborhood, particularly when FWSO concerts occur at Bass Hall.

It appears that Fort Worth Orchestra musicians are demonstrating to management, their neighborhood, their community, and other orchestras throughout Federation land that they will do much more in the face of adversity than previously done. Their actions are those of a musicians’ union in the truest sense. For that, we owe them a debt of gratitude and our thanks and support for showing us the way. For current information about the state of FWSO negotiations, visit www.FWSOmusicians.com.

Best wishes for a happy holiday season and a healthy and productive New Year!

Record Labels Return to the Table: Seeking Successor to Sound Recording Labor Agreement

 

As I write this column, preliminary caucus meetings have just concluded in preparation for the opening round of talks with major labels representing the sound recording industry toward a successor Sound Recording Labor Agreement (SRLA). The existing agreement was reached October 2011, expired February 2015, and has been extended indefinitely while negotiations are in progress. Formal across-the-table negotiations begin September 28 in New York City.

In addition to setting wages and conditions covering musicians performing sessions called by the big three labels (Universal/Capitol/EMI, Sony/BMG/Columbia, and Warner/Atlantic), their owned subsidiaries, Disney’s Hollywood Records, and other covered independent labels, the agreement provides additional special residual payments to session musicians for five years following an original session through the Sound Recording Special Payments Fund (SPF). It also establishes a royalty from sales revenue for the Music Performance Trust Fund (MPTF), which is of critical interest to the Federation, our locals, and our members.

The current round of negotiations will convene against a backdrop of litigation recently initiated against the major labels by the Federation and by the American Federation of Musicians’ and Employers’ Pension Fund (AFM-EPF). The pension fund’s legal action centers on the labels’ failure and refusal to make appropriate pension payments on foreign streaming. The Federation’s action concerns Sony Music’s failure to comply with contract provisions that require additional payments for new use, domestic, and foreign licensing. The day of turning a blind eye toward industry’s noncompliance with the SRLA is done; thus, as a last resort and to demonstrate our resolve toward strict contract enforcement, the Federation and the AFM-EPF have turned to the courts for relief from the games the labels play to avoid paying our members the wages and benefits due.

The negotiations will also take place amidst rapid changes in the public’s consumption of music—away from physical products like compact discs and DVDs, and away from permanent downloads, toward web-based digital distribution that includes interactive and noninteractive streaming. In the realm of interactive streaming, digital service providers like Spotify, Apple Music, and YouTube are paying labels hundreds of millions of dollars for rights to access entire catalogs of tunes, but most featured artists do not have the leverage to demand and obtain a fair royalty from the labels. Session musicians, the unsung heroes behind the labels’ treasure trove of hits, get nothing.

The bottom line is that consumer spending on recorded music and record industry revenue are moving swiftly from physical product and digital downloads to streaming. And as we watch our traditional royalty positions in physical and download sales decline precipitously, threatening the very existence of MPTF and SPF, pursuit of new money for those funds will prompt a new sense of urgency in the upcoming negotiations.

Our negotiating team is an inclusive, well-rounded mix of international officers, local officers, rank-and-file recording musicians, AFM staff, and attorneys. It includes AFM International Vice President Bruce Fife, Vice President from Canada Alan Willaert, Secretary-Treasurer Sam Folio, International Officers Tino Gagliardi of Local 802 (New York City) and Dave Pomeroy of Local 257 (Nashville, TN), Recording Musicians Association (RMA) President Marc Sazer, RMA rank-and-file representative Neil Stubenhaus of Local 47 (Los Angeles, CA), Local 47 President John Acosta, Local 10-208 (Chicago, IL) President Gary Matts, Local 9-535 (Boston, MA) President Pat Hollenbeck, Local 10-208 Electronic Media Director Dean Rolando, and Local 802 Electronic Media Director Steve Dannenberg.

Also represented in our SRLA negotiating team are a host of talented rank-and-file recording musicians whose knowledge and experience from the field is essential in building a credible approach toward industry. We will have expert assistance from AFM EMSD Director Pat Varriale, and an invaluable trio of lawyers featuring AFM General Counsel Jeff Freund, Associate Counsel Trish Polach, and In-House Counsel Jennifer Garner.

We expect that negotiations with industry will be long and difficult. For the first time in recent history, the Federation and AFM-EPF have initiated legal action to enforce compliance with SRLA provisions. Those actions have served notice to industry that, when we are left without proper paychecks and benefit payments, and attempts to correct those actions are stonewalled, there will be consequences. The industry also knows that the Federation is acutely aware of the rapid changes in consumer spending and how those changes have adversely affected MPTF and SPF.

Your negotiating team will bargain hard to ensure that our successor SRLA will be a progressive agreement and will promote, preserve, and protect the interests of the Federation, our locals, and our talented recording musicians both today and throughout the years ahead.

Hartford Musicians to Rally at Connecticut State Capitol

If you are in the Hartford, Connecticut, area and free on Wednesday, September 9, come out and show your support for the musicians of the Hartford Symphony Orchestra who are fighting for a fair contract. A rally is planned for noon on the north steps of the state capitol building. Speakers at the rally will include AFM International President Ray Hair and Connecticut AFL-CIO Executive Secretary Treasurer Lori Pelletier. Following the rally, musicians will march to Bushnell theater to engage in informational picketing.

Hartford Symphony musicians, members of Local 400 (Hartford, CT), have been fighting for a fair contract since June 2014. Their last contract expired in 2013, and as negotiations began, musicians agreed to a one-year extension. The symphony has proposed nearly 40% wage cuts for core musicians and more restrictive scheduling. These changes would adversely affect the ability of the part-time musicians to earn a living through other part-time jobs.

Additionally, the current proposal does not include any in-school educational performances. In past years, the musicians have done more than 200 interactive educational performances of small ensembles for students.

 

Modern Union Busters Work from the Inside—and You Won’t Like Where They’ll Take You

Since the dawn of unions, there have been union busters. It’s an eternal dynamic between capital and labor. Generations ago, the Pinkertons lurked near factory gates with their bats. In the Chicago Haymarket riots, police and workers perished from a bomb blast during a demonstration in support of an eight-hour workday. In the Harlan County, Kentucky, coal-mining wars of the 1930s, state, and federal troops fought the union.

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Webcasters Like Pandora Should Pay More for Our Music

 

On April 29, 2015, I testified before the Copyright Royalty Board (CRB) in Washington, DC, in an effort to boost payments to musicians from digital webcasters like Pandora. The CRB is a three-judge panel that sets rates on the statutory license that covers what webcasters pay for noninteractive distribution. Below is an excerpt from my testimony.

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The Pandora – Naxos Deal: Fairness for Professional Musicians?

Below is an opinion article I authored in response to a recent deal between Naxos and Pandora, which apparently bypasses direct payment to members of performance rights royalties for digital radio through SoundExchange and via the AFM and SAG-AFTRA Fund. Digital royalties from webcasters like Pandora have been growing quickly. Unfortunately, US law also allows record labels to cut direct deals outside of SoundExchange. The new performance rights bill introduced by US Representatives Jerrold Nadler (D-NY) and Marsha Blackburn (R-TN) would ensure that statutory performance royalties are paid to performers. Continue reading

New Director, New Communications Plan, and News Briefs

By the time you’ve opened your snail mailbox, retrieved this issue of the International Musician, and perused this month’s column, our newest addition to Federation staff, Rose Ryan, will have begun her important work. In fact, odds are that, if your membership profile includes a current e-mail address, you’ve already sampled her work firsthand in our new e-newsletter, rendering the news items I’ve outlined below as old news.

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