It’s an overcast Day Two for VH1 down here at the 2012 South By Southwest Festival, but we’re not complaining. Every minute that the sun isn’t shining is a minute where we don’t mind being inside, nerding out listening to some of the most influential and interesting people who operate in the music world.
Case in point, today’s panel discussion about the new VH1 Rock Doc Downloaded. We mozied our way over to the Austin Convention Center to watch Downloaded director Alex Winter moderate a discussion with the two co-founders of Napster, Shawn Fanning and Sean Parker. This full length documentary film will premiere on VH1 later this year — the only footage screened today was a five-minute long teaser clip — but Fanning and Parker had a lot to say about their invention, their company, the effect that it had on the music business, and companies —like Spotify and iTunes— that were launched in their wake.
In particular, the always controversial Sean Parker made a couple of statements during the panel discussion that made the audience gasp and will certainly get tongues wagging. Here’s a sample of his five most controversial quotes.
“There’s definitely some sort of dissent brewing between record labels, publishing companies and artists [about the compensation they get from streaming services] … Spotify is returning a HUGE amount of money [to the record labels]. If we continue growing at our current rate in terms of subscriptions and downloads, we’ll overtake iTunes in terms of contributions to the recorded music business in under two years.” —Sean Parker throws down the gauntlet that Spotify will drive more revenue for the record industry than iTunes
“Even the iTunes store, to this day, is SO SLOW [compared to Napster]. I’m amazed. It’s like this embedded website within their client that when you click buy [makes spinning motion with his hands].”—Sean Parker on Apple’s laziness with regards to improving the iTunes Store
“In some sense, YouTube is much more liable [than Napster]. If you’re hosting the content, you’re liable, potentially, for direct infringement. We had to be sued for the much more esoteric contributory, vicarious copyright infringement … The funny thing about YouTube is that all of the user-generated content was accounting for such a small fraction of [their traffic]. In reality, it was a smokescreen. They had all this UGC, tons of it, and they were able to make a case in the various lawsuits against YouTube that that was the bulk of their content. When, in actuality, the traffic was largely being generated by SNL clips and other copyrighted content.” —Sean Parker on the injustice and inconsistency of the United States legal system
“Suddenly, [Napter] was taken over by lawyers. Our CEO was literally an attorney. Not to begrudge our CEO at the time, but one of our important lessons learned is that your CEO should never be an attorney. It became like a law firm.” —Sean Parker on how NOT to run a business that depends on creativity and innovation
“The record business was terrified of it. And there wasn’t even room for conversation. These guys were such dinosaurs that they were just for the first time waking up to the idea of digital media. They hadn’t even considered the implications of what was coming … [But during our meetings with the major labels], they were grinf*cking the sh*t out of us.” —Sean Parker on the record industry’s reaction to Napster
And one bonus quote for you after the jump!