For some unknown reason someone [or a group of people] have been hitting Magnatune hard with credit card fraud, to the point where the company was dropped by their payment processor.

This is a great example of how a good company [and one that helps artists worldwide] gets harassed by ‘criminals’ only to find itself punished by the very same people whose inadequate systems are responsible for the mess in the first place: Visa. John Buckman reports that Magnatune saw ⅓ of its subscriber base disappear due to this change [Magnatune is now depending on PayPal for its credit card transactions and the fact that each payment goes via another entity makes it slightly harder to charge the recurring fees subscriptions bring, without asking the users to register with PayPal etc].

As regular readers may have noticed, I am a great fan of Magnatune; both ethically and artistically I find their effort and business commendable and I have, over the years, found several excellent albums from that company. I hope that things get better for them soon. As a sidenote, I really wonder why someone would hit Magnatune in this manner. Clearly it’s not aimed at getting hold of the music, given that you can get the tracks for free anyway…

The Silicon Alley Insider raises an important question, with regard to Radiohead’s testimony against RIAA in a case against a college student: Would Radiohead be able to take that stance if they hadn’t sold millions, “without the protection and promotion of an RIAA that Radiohead now blithely dismisses”?

But while arguing RIAA’s importance with regard to the vast majority of musicians is mildly amusing in its fallacy, the article doesn’t stop there:

We love Radiohead, but we’re not sure if the band realizes they’re superstars, and the normal rules don’t apply to them anymore. The band’s “pay what you want” idea for the In Rainbows album may have been successful, but for every one Radiohead there’s ten thousand would-be rock stars selling CDs out of the trunks of their car (or MP3s on some little-visited web site) and starving.

So, one Radiohead per ten thousand would-be rock stars. Apparently the authors ignore that this is exactly the status quo that the RIAA nurtured in decades past, exactly what the internet, mp3, file sharing and indeed Radiohead’s testimony help change: total control over music promotion, repertoire selection, bias in favour of genres/artists by a few multinational corporations aimed at nothing more than profit maximisation. Put another way: A small minority of artists getting all the exposure [and some of them going bankrupt despite the megacorps' multi-million contracts], while millions more being unable to promote their music, make money, live off it. Those same approaches that have led to a just few hundred artists getting millions and the rest starving. If anything, testifying against the RIAA, especially if you’ve attained superstar status, goes against that. Lastly, Radiohead — whether you like or dislike their music — have proven their artistic integrity as well as their popularity time and again, most certainly without RIAAs help. There’s no doubt that the interests of musicians around the world should be protected; RIAA never did that and most probably never will.

It’s not that they are asking for money to keep themselves going. No, they are — and have been for a time — owned by CBS. It’s not even that they put it like this on their blog (“promise that we’ll be hard at work improving the service for years to come.”), but it’s mostly that they are so keen to discriminate, they’ve been doing it for a while (see geographically-limited iPhone app, geographically-limited free radio service etc.) and now they will make their service unattainable for so many worldwide.

Pandora was the better of the two services. Last.fm was the more ‘decent’ one (socially) and apparently the savviest one from a business point of view as it managed to keep the service available worldwide for longer. The change to Last.fm radio will probably mean the end of the service for many users outside of the three countries that will keep enjoying it for free. For me, I guess my subscription will not be renewed.

The saga continues, with the music industry attempting to subvert the law in Europe and turn ISPs into policy enforcers and courts of law all at once. With ever higher profits in 2008, and a pretty grim record of accusing and prosecuting the elderly, single mothers with no computers etc. in the States, it seems like the music industry would rather hand the dirty job over to ISPs.

This is, besides illegal, pretty prone to error — as history has shown. I’m really looking forward to the next settlement Eircom will reach, this time with wrongly-accused (and disconnected) individuals. Hopefully it’ll be more than enough to compensate for their stupidity.

Heh, if that article is even slightly accurate, I’d be very surprised if Myspace didn’t try to do everything in its power to satisfy indie labels and bands. Without them it stands no chance of surviving. None at all, even if it had all four major music megacorps behind it. The competition is so much better and Myspace is mediocre if not poor an implementation.