Here It Goes Again

Damian Kulash Jr., the lead singer and guitarist of the OK Go, has an illustrative piece in the nyt today about record label stupidity and dinosauritis. In 2006, the band created a fantasticly creative video for one of their songs on YouTube, a video which became extraordinarily popular.

Now we’ve released a new album and a couple of new videos. But the fans and bloggers who helped spread “Here It Goes Again” across the Internet can no longer do what they did before, because our record company has blocked them from embedding our video on their sites. Believe it or not, in the four years since our treadmill dance got such attention, YouTube and EMI have actually made it harder to share our videos.

A few years ago, reeling from plummeting record sales, record companies went after YouTube, demanding payment for streams of their material. They saw videos, suddenly, as potential sources of revenue. YouTube agreed to pay the record companies a tiny amount for each stream, but — here’s the crux of the problem — they pay only when the videos are viewed on YouTube’s own site.

Embedded videos — those hosted by YouTube but streamed on blogs and other Web sites — don’t generate any revenue for record companies, so EMI disabled the embedding feature. Now we can’t post the YouTube versions of our videos on our own site, nor can our fans post them on theirs. If you want to watch them, you have to do so on YouTube.

But this isn’t how the Internet works. Viral content doesn’t spread just from primary sources like YouTube or Flickr. Blogs, Web sites and video aggregators serve as cultural curators, daily collecting the items that will interest their audiences the most. By ignoring the power of these tastemakers, our record company is cutting off its nose to spite its face.

The numbers are shocking: When EMI disabled the embedding feature, views of our treadmill video dropped 90 percent, from about 10,000 per day to just over 1,000. Our last royalty statement from the label, which covered six months of streams, shows a whopping $27.77 credit to our account.

Clearly the embedding restriction is bad news for our band, but is it worth it for EMI? The terms of YouTube’s deals with record companies aren’t public, but news reports say that the labels receive $.004 to $.008 per stream, so the most EMI could have grossed for the streams in question is a little over $5,400.

It’s decisions like these that have earned record companies a reputation for being greedy and short-sighted. And by and large they deserve it.