Louis King and Mark Rucker discussing Web 3, AI, and music industry trends on Edge of NFT podcast.

The Future of Music & Creator Rights with SoundExchange and Gala Music

October 3, 2024
Podcast
In this episode of Edge of NFT, the panel discussion with Louis King and Mark Rucker from SoundExchange delves into the complexities of the music industry in the age of Web 3 and AI. They explore the importance of creator rights, the impact of social media platforms like TikTok, and the role of AI in music creation. The discussion highlights the need for fair compensation for artists and the potential of Web 3 technology to revolutionize the industry. 

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Key Topics Covered:

  • The importance of advocacy for creator rights in the music industry and the complexities surrounding rights and royalties in the digital age, including the impact of platforms like TikTok and YouTube on artist compensation.
  • The role of AI in the music industry, including its potential as a creative tool, the impact on royalty systems, and the ethical and legal considerations associated with AI-generated music.
  • The significance of Web 3 technology for artists and the potential it holds for creating direct relationships with fans, empowering artists to sell NFTs, and providing alternative revenue streams outside of traditional label deals. The discussion also delved into the pitfalls and opportunities for artists navigating label deals in the current landscape.

What was your favorite quote or lesson from this episode? Please let us know in the comments on YouTube. https://www.youtube.com/@edgeofnft/

Episode Highlights:

  • "It's a business partnership, and you want to make sure that that business partner becomes a part of your business." - Marc Rucker [00:17:12]

  • It's creating beautiful things AI I think for artists, you know, we're, we are all unique. Not just artists. Everyone in here is unique, so, you know, there's not a robot that can make you useless, but you're always gonna have to find your next way of adapting to, you know, sort of evolution." — Louis King [00:21:34] 

  •  "The industry, to me continually, every, every few years, there's a new iteration of technology that comes through and the people I've seen win the most are the people that embrace it first, truly." - Marc Rucker [00:26:36]

For the full transcript, see further below. 

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About Our Guests:

Bio:some text

  • Mark Rucker serves as the Associate Director of Industry Relations at SoundExchange, a nonprofit organization dedicated to collecting and distributing royalties for digital performances. With over 15 years of experience in the Nashville music scene, he has worked with various artists and has a background in artist management, business management, and publishing. Rucker is passionate about advocating for artists' rights and ensuring they receive fair compensation for their work in the digital age.
  • Louis King is an international touring artist known for his unique blend of blues and rockabilly music. He is associated with Gala Music, a platform that empowers artists by allowing them to set the value of their music and connect directly with fans. King emphasizes the importance of community and meaningful connections in his work, using his music and art to navigate complex emotional landscapes. His participation in the panel highlights the experiences of artists in the web 3 space and the opportunities it presents for creative expression and financial empowerment.
  • Website: Sound Exchnage, Gala Music
  • Twitter: LouiiKing
  • Instagram: @louiiking, @mrucker7
  • LinkedIn: Mark Rucker, Louis King

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Full Episode Transcript:

Intro [00:00:01]:

Welcome to the Edge of NFT, the podcast that brings you the top 1% of Web 3 today and what will stand the test of time. We explore the nuts and bolts of the business side and also the human element about Web 3 is changing the way we interact with the things we love. This podcast is for the dreamers, disruptors, and doers who are pumped about this ecosystem and driving where it goes next.

Josh Kriger [00:00:26]:

Welcome to Edge of NFT moderated tonight by myself, Josh Kriger, co-founder of Edge of Company, a quickly growing media ecosystem empowering the pioneers of Web 3 tech and culture and responsible for other groundbreaking endeavours like Outer Edge LA Innovation Festival and NFT LA Community Week. Today's show is sponsored by SoundExchange, taping live at 2 Bit Circus during Curiosity Circus as part of NFT LA Community Week powered by MainCard. SoundExchange is revolutionizing the music industry with technology and fairness, powering creators with low rates and comprehensive services by streamlining music rights and royalties. It's an honour to introduce our panelists for tonight. First, we have Mark Rucker, associate director of Industry Relations at Sound Exchange. He has over 15 years of experience in the Nashville Music Scene, where he bridges the gap between traditional music management and innovative Fintech solutions, including Web 3 Division at KAOS, as well as Big Loud, Crosshair Music, Parallel Entertainment, Crush Music Management, and much more. You've been busy. He's also worked with artists such as Chris Lane and Mackenzie Porter.

Josh Kriger [00:01:32]:

He's focused on advocacy for artists' rights and managing industry relations, based on his background in artist management, business management, and publishing. Thanks, Mark, for being there. We also have the one and only Louis King, an international touring artist AI with Gala Music.  exciting partner of ours as well. Nice to have you here, Lewis. He's known for his blend of blues and rockabilly music. He utilizes his music and art to navigate the complexities of life and emotion. I would agree with that.

Josh Kriger [00:02:01]:

Life is pretty complex these days. He’s showcasing his versatility not only on stage but also in setting in film at TEDx, further solidifying his influence and commitment to creating meaningful connections to music. Good to have you here as well. So, guys, I'd love to kick it off, to talk about advocacy for creator rights. That's been a major, major focus of Web 3 for the 3 years I've been in the space, and I think music is one of those areas that it just makes sense that there are opportunities for improvement. But it starts with sort of understanding the state of music production today and the age of Web 3 and AI, and I wanna sort of get into that in terms of this idea of artists’ rights and a fairly contentious topic. There's a lot of conversation about it on social media, and a lot of headlines about it. You know, we've had a lot of changes over the last decade with Dapster moving on from there.

Josh Kriger [00:02:59]:

So, I'm curious, Mark. You know, when we get to rights and royalties and whatnot, why is this topic so important today? Where are we in sort of this date and time in terms of rights?

Marc Rucker [00:03:12]:

Yeah. Well, how much time do we have? Because I gotta go through this. I'll start with the back half of why it is important to talk. You know, a lot of the industry, the under parts of it aren't talked about enough. So I think it's been an incredibly important thing for artists to be able to speak out about, songwriters to talk about because I think a lot of people have this misconception you have all these followers. You must be making a shitload of money. And we as we all know, as we're walking around and going well, kind of, but not. And so parts of the reason why that is is because this industry has been kind of cobbled together over the last 100 years. You know, we still have systems that go back to when they were paying for piano rolls, right, and this analogue system.

Marc Rucker [00:03:55]:

And now we're coming to this new age of Web 3 and digital assets and all these new things where this technology can help support artists differently. And the way that we manage data has been updated so many different times throughout the years. But yeah. So I guess at that point, what I would say, and if I wanted to, I wanna share this with you again. You know, partly the reason why I'm so passionate about this, and I think Soundex changes as well, is because, at the end of the day, we want you guys to be able to connect and be able to get the royalties that you're earning as quickly and as efficiently as possible. And, unfortunately, what that looks like is you have to sign up at 7 or 8 different places. You have to make sure that it's right when you sign up. You have to follow up to make sure that that's right when you get the check.

Marc Rucker [00:04:38]:

And then even at that point, you still don't know if you've gotten everything out of that. And so it's important to us that we showcase that to everybody. We share what we know, and we share along with the industry to make this better in a more efficient place.

Josh Kriger [00:04:52]:

Yeah, I could appreciate that because artists want to just create, right? They want to just create their music and get the world with their creation and a lot of them don't think about these spider details and may slip through the cracks in terms of registering here, registering there, which sort of leads to my question for you, Louis. I mean, you've lived in the world of Spotify and iTunes and all that, and now you AI with Gala. I'm curious about your journey in sort of, I guess, what does Gala offer you as an artist that you were looking for maybe before you signed with them?

Louis King  [00:05:27]:

Well, one thing that I love that Gala offers is the first thing I always start with, the community at Gala. It's just an amazing community. I made some friends in the audience. Where were the gala homies? Make some noise. You know? But like, these amazing people who jumped onto something early and my connection starts just as a human being. You know what I mean? And so we talk about artists in Web 3. We talk about breaking down middlemen and just directly connecting with your fans, your friends and your supporters. So for me, the first thing was just an amazing community group of people that will help you share your music, and that's that's a big thing.

Louis King  [00:06:17]:

Quality people, who believe in something special.

Josh Kriger [00:06:22]:

So what's the contrast with what you're able to do with Gala relative to sort of how Spotify and iTunes shape your career? What was the pre-Gala era like for you as an artist? And I guess there are some positives and negatives that come with the music industry and these platforms that do allow you to share your craft, but maybe, don't necessarily give you the rewards that make sense based on your contribution to society.

Louis King  [00:06:52]:

I think that Gala and Web 3 in general offer a chance for the artists to empower, and so Gala is empowering artists. Some of them are independent artists. Some of them are major artists, but they are empowering them with this system that creates value for our artwork. Because if you look at Spotify and Web 2, you're looking at a contract and agreement that all of us artists never signed up for. We didn't sign up personally and say, hey. You can stream all my music and take it. We wouldn't have agreed to that, but we take what we can. So what Web 3 and specifically Gala Music has done for me is said.

Louis King  [00:07:43]:

You know, what do you think your art, your song is worth? Well, we'll sell it for that. You wanna start at a 100. Right? Okay. Sell it a 100 out of a 100. Boom.

Louis King  [00:07:56]:

Sell that at 150, whatever. 

Josh Kriger [00:07:58]:

At the end of the day, it's about a consensual process versus a non-consensual process. So, thanks for sharing that with us, and we'll dive in a little bit more. Mark, you sort of talked about why there's a need for SoundExchange. What exactly does SoundExchange do to help with this problem of more essentialness in our industry of music?

Marc Rucker [00:08:22]:

So SoundExchange was created in 2003, as a nonprofit through Congress, to collect and distribute the section 114 statuaries for digital performance on non-interactive digital radio. Essentially, what that means is that if there is, if you get played if you have an if you're an artist and you get played on SiriusXM or Pandora Radio or Music Choice or Iheartradio if it's streamed over the Internet, not on FM, which I can talk about, why that is. But if you get that airplay, there's an additional royalty for the featured artists and for the rights owner, which is an incredible opportunity for artists to get paid for their airplay. All over the world, that happens for FM radio, but in America, we don't do that. We only do it for this non-interactive digital radio part. And talk about advocacy. We're big advocates for pushing that through and getting FM to be a part of that as well. But it’s not as straightforward as what everybody would want it to be.

Marc Rucker [00:09:23]:

So we have over 650,000 artists and creators that have joined, that it's free to join, it's free to sign up. You register, you get a login, and then you can jump in and claim your songs. And then the payment starts to flow through as you get more airplay. So it's set up to be this free service for artists and the rights owners to collect the royalties that they're earning. And it's, to me, the most straightforward royalty system out there. It's also by far the fastest. If you're on direct deposit, you get paid every month and anybody who’s been a part of music for a long time knows that man, like your PRO might take you 9 months to get paid.

Marc Rucker [00:10:01]:

And you're this, why is this happening to me? You know? So, for me, after being in years of management I gotta get to see every part of this from the publishing side to the collection side to each side. And, I've found that SoundExchange was by far the best place for artists to be able to make their money first, and then dive out from there. Typically it goes somewhere else first, and then it comes to them and they get their AI 10% or whatever they're gonna earn. And this kind of goes the other way. We pay artists directly. So, everyone from the Beatles to Beyonce to the up-and-coming artists, they're all signed up with us. They receive checks just like everyone else.

Josh Kriger [00:10:41]:

Yeah. I can appreciate what you're saying. And I think about it from the perspective of podcasting too, because we are podcasting. For those who aren't aware, it's decentralized. Right? So there's an RSS feed, and then it gets broadcast out to all these different platforms. And we don't know our audience. We don't have a direct relationship with our audience. We have to be creative about how to create that relationship through email newsletters and IRL events like this. And so, there's a lot of value in sort of consolidating, all that sort of noise, if you will, for artists.

Josh Kriger [00:11:15]:

There's another side of, I guess, the music industry now, which is sort of how it interacts with social media. And one particular outlet that I think is interesting, it's in the news a lot right now, is TikTok. Right? So, I'm curious, Of, if if you use TikTok, if that's been part of your sort of way of amplifying your voice to the masses and sort of what your thoughts are on the possibility it gets blant banned or or acquired by a a new US company and sort of how you think about social media in in this current age where these sort of issues come up on a on a regular basis.

Louis King  [00:11:51]:

Yeah. TikTok is such a large discussion because there’s kinda stays out of political stuff from and from just an artist standpoint of how we utilize TikTok. It's a rare opportunity. You know? It's probably how I like to call us the most viral of the viral. That's kind of the thing about TikTok is where anyone can go viral. You don't need a large fan base, and it's very algorithmic. I have a song that I did because we're all intointoAI and this type of Web 3 stuff. I have a song that’s Kendrick Lamar and Drake.

Louis King  [00:12:35]:

They have a little disc, they have their stuff, their beef and J Cole. And I just, for fun, made a song, just a Drake, Kendrick Lamar diss. And that song I posted yesterday. It's got almost 200,000 views just for one day. So it offers and it offers access to people, and I think that's scary to a lot of people. So, for artists, I'd say, get it in while you can now, need to do what you can do. And I think it will show your video to the people you wanna reach. One thing I like about Web 3 though is these people are valuing it more.

Louis King  [00:13:23]:

So one thing I've seen with TikTok is its AI, it's so saturated that you're getting a bunch of stuff. And it's gonna reach people. So, anyway. I mean, I agree.

Marc Rucker [00:13:35]:

I think as a discovery tool, it's been pretty amazing. But I will say that as David, the old music guy in the room at this point, I don't know. Over 15 years, I've seen different iterations of social media kinda be that over and over and over. So that doesn't mean that TikTok does have something happen over the next 6 months. That doesn't mean that there won't be something else. That, I think, means that we have to keep searching for it. And I agree with you.

Marc Rucker [00:14:03]:

I think in some ways, it's about gathering your super fans and figuring out how you can dedicate yourself more to them than you can to that casual fan that saw your video once and then kept going past it, but you got the view. And again, that goes back to like the royalty systems that I feel it’s a common misconception to think, just because you get all these views, you're earning a lot. And that’s, that's happening from and I understand there's a lot of, importance in getting a lot of views, of course, but when you, when you try to explain this to somebody that's not in the music business and they don't realize that people are getting paid for that, whether it's the artists themselves or the songwriter or the producer, it actually could present more problems than actually solutions. Right? 

Josh Kriger [00:14:46]:

Yeah. I can appreciate that. Meaning, with YouTube as well, we'll have videos that get tens of thousands of AI, and I think we get a check for$30 at the end of the month. So, I hear that. And I think it's interesting we talked about sort of this TikTok to Spotify virality sort of funnel that doesn't generate the real money for artists’ creativity. So next, you have to sign a label. And I'm curious when artists are at that point, what are the pitfalls that they might run into, and what's your advice to artists who are ready for that step in their career? Well, real quick. 

Marc Rucker [00:15:15]:

You know, specifically dealing with SoundExchange, TikTok Radio, on SiriusXM does generate a lot of income for a lot of artists that go viral, and they have no idea that they are being played on TikTok Radio. Therefore, they don't know that they're getting a sound exchange royalty. Therefore, we're reaching out and saying, Hey, you shouldn't, well, not you shouldn't, don't, here's all the information, you might have a check for you, and you could, you could be signing for a, to a label or to a publisher because you need the money when in reality, you've already earned it you just haven't gotten it yet. Right? So we must talk about these things, but as far as label deals, I wanna kinda piggyback off of what he was saying about Gala. It is to me, it's a lot about the relationships that you have with the team and also understanding that at the end of the day, it's a business partnership and you wanna make sure that that that business partner becomes, becomes a part of your business and you are allowed to communicate with them what your goals are. I think a lot of artists don't know enough about their goals until they get to a certain level. It'd be great if I was Taylor Swift or Adele, but at the end of the day, what are you, what's your actual goals? And if you need a label, then great.

Marc Rucker [00:16:32]:

It's just to me, it's just like an investor. It's if you're at a startup or something like that. So I think in some ways it's about understanding that it's a business relationship, it's a business partnership, it's about having those relationships, and then if anybody leaves or something like that, you have to make sure that you're continuing that going. And then, maybe in addition to that, I would say that understanding the label's bandwidth, having your team kind of understand, well, they've signed 7 artists in the last 7 months. I don't know if that's a great idea for me, but it depends on your goals and what you're looking for. So I think at the end of the day, it's about understanding why you would do it. And do you need an investor at that time or is it a later time?

Josh Kriger [00:17:12]:

Right on. And Louis, I'm sure a lot of artists come to you for advice as they're sort of getting up in their careers and look to you as a mentor. Are there sort of some key points that you wanna hit home with them, especially at this current moment in time?

Louis King  [00:17:27]:

Sure. And to jump back, it adds to what you were saying. I think that's a great point.  I've seen that in some places. You know, you trust good people, and I wanna say that about Gala. I  have a lot of respect for the team. I've been around a lot of teams, and a lot of companies. You know, they are some amazing people. Shout to Leila Steinberg. I mean, if I'm an artist and I'm meeting the president of a company for the first time if I wanna do business with them, we're so lucky we have Leila Steinberg.

Louis King  [00:18:10]:

So I wanna get her flowers. And, I  think that's big, like you said, about picking who you choose wisely and then understanding too, that in the record label situation, the base deal, based 360 deal or probably the most standard deal is a loan. In the end for artists, it's a loan. So you're getting a loan, and you will have to recoup that loan eventually. Now is it better if your album is selling on the shelf, if you're touring, if whatever it is, you're gonna be held to that money? So the difference in the Web 3 space like Gala is now the money that is made off of the NFTs that I sell is not a is not a loan. These people are supporting you. They're collecting them. I don't you gotta be careful what word you use, but they're buying these NFTs, and that money is now gonna come back to you usually after about 6 weeks.

Louis King  [00:19:22]:

You know, they're working on something direct. So when someone purchases it, it'll come directly to the account. Once they get that, it will be incredible. But, yeah, it's very important when you get paid. So the big thing is knowing it’s a loan.

Josh Kriger [00:19:38]:

Appreciate that clarification. So you touched on this a little earlier, and it's a fun topic. We have another show called Edge of AI, and we've talked to musicians on all sides of the fence when it comes to AI. So I'm curious about where you stand. Are you pro AI? Are you anti-AI? Are you concerned? Are you excited? What are your sentiments on AI and how it's impacting the music industry?

Louis King  [00:20:00]:

Man, I love AI. I love using AI. You can't be lazy with the AI now. You can't just pick up an AI app, put something in, put it out, go post it up. You use it. You use it as a tool. You know? You wanna write a book. You don't just put the feed in.

Louis King  [00:20:18]:

You take your feed. You take it out, and then you edit it, and you customize it as a template. And so for me, I did one thing I did, with the AI that I was proud of was, I did a song called, Damage, and Damage released on Gala Music and went number 1. And I offered my fans, I said, hey. You know, if you are interested in supporting this music video, you guys can pay $100, and you will be included as the Web 3 executive production team. And so they are credited actually in the video. So I used that AI when I was on tour in Egypt, and I went and did a music video in King Tut's tomb and by the pyramids. I shot that video in the oldest King Tut's tomb of the oldest wonders in the world, and then I put it with this new AI, technology and created this video that I cut up frame by frame.

Louis King  [00:21:24]:

I just didn't put it into AI and that was it. I put a lot of time into it. But it is created, like this is a blessing. It's creating beautiful things. I think artists we’re, we are all unique. Not just artists. Everyone in here is unique, so there’s not a robot that can make you useless, but you're always gonna have to find your next way of adapting to a sort of evolution.

Josh Kriger [00:21:54]:

Yeah. Right on. So, yeah. I mean, I'm not exactly neutral on this topic. I think we have to embrace the possibility it's here. Right? And, Mark, I'm sure you guys talk about AI a lot within SoundExchange and try to have conversations with artists about it. It can get pretty complex from a royalties perspective. Do you have any sort of thoughts on the topic at this point?

Marc Rucker [00:22:19]:

Yeah. Complex is a good way to say that. Yeah. So, in regards to AI, I think I agree with you. I think as a tool, it's incredible. I mean, any but anybody that's used it for anything creation is great, but, I mean, anything you use scheduling or chat GPT, and you're putting ideas in there and getting stuff coming back. I mean, it's fascinating. While that tool is there to be used, there are also opportunities for it to be abused.

Marc Rucker [00:22:48]:

Right? Just like anything that we have in this world. So, this is where, again, these issues are important to talk about, because these are gonna, these are gonna be dictated in courts and legislation and these things. That's how we're all gonna be protected or not. And so at SoundExchange, we always say that, when it comes to anything, it's about having consent, credit, and compensation. And so at the end of the day, we want it to be fairly, fairly judged, fairly put together. You know, at this point, generative AI is not copyrightable, so we can't do much with it at this point. But we're continually watching the courts of the US and of the EU. We're paying attention all over the world because this is not gonna be just a US-based issue.

Marc Rucker [00:23:30]:

This is gonna be everywhere. And I think from our standpoint, it's important for us to even say that name image likeness we’re gonna have a lot of tools around vocals and we represent the featured artists. Or, we represent all creators, but on the other day, we do pay out the featured artists. And so if their vocals are used on an AI generative track, we wanna make sure that we are ahead of this. It's trying to understand, did they get that consent? Did they get credit? Are they getting compensated for it? How's that gonna work? So yes.

Josh Kriger [00:23:59]:

I'm curious if anyone in the audience has heard the song Heart on My Sleeve. It's a mix of 2 artists, Drake and The Weeknd. Have you guys heard it? Yeah? Alright. So Lewis has heard it. So, it was considered at one point, for a Grammy, but, ultimately it was disqualified. It was AI-generated. So, I'm just curious, Louis, just to wrap up this AI topic, how do you feel about fans using your voice and your AI?

Louis King  [00:24:28]:

I think it comes down to what I talk about with our group, aim for the heart, shout out to aim for the heart. That's our nonprofit, and we talk about emotional literacy through music and arts. So breaking it down, everything is emotional literacy. So if you say something you’re gonna see Drake or Kendrick, you know what I mean? And you say something about them or you take them to do something that they don't like that they probably wouldn’t. They’re probably not gonna be happy with that. To me, it just depends on how you use my art. If you're legitimately trying to take a song, pretend that you're Louis King, and maybe go viral or something like that it depends which way you are doing it. I don't know. Just for me, I just feel like I am not gonna be bad at anything anybody doing, doing something that doesn't personally impact me.

Louis King  [00:25:33]:

But if they then make a bunch of money off of it and there's a win and there's a way I could be compensated, I'd like to be compensated. That's the way I would say it.

Josh Kriger [00:25:44]:

Cool. It's a fascinating complex topic. We'll be talking about it for a long time. It's been fun to get to know both you and your perspectives on the future of music. Any closing thoughts before we wrap? And then, where can folks go to learn more about what you're up to?

Marc Rucker [00:26:01]:

Yeah. Closing thoughts is that the industry, to me continually, every, every few years, there's a new iteration of technology that comes through and the people I've seen win the most are the people that embrace it first, truly. So I think it's great that you guys are in this room. So congrats to you. I think it's awesome to experiment with this stuff a few years ago, called Chaos, which was great to just kind of get my feet wet and understand AI. Wow, like these direct-to -fan relationships, these direct-to-you know, consumer relationships are important. And then, you can find me on Instagram.

Marc Rucker [00:26:36]:

You can find me on Twitter. You can also find me on SoundExchange.

Louis King  [00:26:39]:

You can find me, Louis King. You can find me on Facebook. I mean, on Instagram, on Twitter, all Louie King. My music is, is all, everywhere, but specifically, Gala Music and my album famous in the metaverse is an exclusive Web 3 album. It's exclusively on Web 3. It's the first, I'd say it's one of the first of its type on the album. We got Snoop Dogg, Wiz Khalifa, Benny the Butcher, Voice AI 9, Absol, and and the list goes on. So I would encourage all of y'all to check it out, to jump into Web 3, whether you're an artist or whether you're a fan because you guys can make a lot of rewards as well as people are on the game.

Louis King  [00:27:26]:

So that's all I can say. Louie King is famous and metaverse. Thank you. 

Josh Kriger [00:27:33]:

Heartfelt thanks to both of you for being on this panel. Shout out to Gala, and thanks, SoundExchange, for being one of our partners for this fun event. So let's give it up to these guys again. So a lot of people made this event happen. Just another reminder about Favor. Those guys are all over, 2 Bit Circus having fun, giving out drink tickets if you sign up for their application, which is dope. The edge of NFT is already on it. It came from all over the world to be here.

Josh Kriger [00:28:02]:

So buy in the favor, guys, and grab a drink of your choice, thanks a favor. And, Yeah. Just also thanks again to Main Card, our other partners, for making this event come together, and, we'll keep going with the show.

Outro [00:28:19]:

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