Wayne Rosso: Make A Buck Off Internet Music Or Die Trying

OK, before reading the story below in shock and disbelief about my mellow tenor and primer tone, keep in mind that this was written for Slashfilm, a film site I write for. The site is somewhat mainstream and its principal has been courting the studios, everyone does. So. apparently they (the overpaid bigwigs raping our culture) have been eyeballing the site, which has done quite well in the few months it's been running. Today I went to log the story (below) on, and the site was so full of pop-ups, it wouldn't function. The writers have been complaining. Anyway, here's your preview, along with your own title:
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Grokster, yesterday, reached a settlement with RIAA, MPAA & other entities representing Big Entertainment (we had Big Tobacco, then Big Pharma…. ) who had sued it in 2002 for offering software which allowed people to exchange files. Since most of the files “traded” (downloaded) were owned by five big record labels who had secured most of the money making value of those songs through far reaching Copyright laws that they pay $35M/year to have made, they were pretty miffed and continue to seek recompense where they can find it.

Unfortunately, for them, most of the value of their booty has seeped back into the hands of the people it belongs to, the kids of the people who made those songs hits and paid up the ying yang for them. Since the labels have no way to recoup from all these kids, except of course, the twelve-year-old Harlem girl, and the many grannies they’ve sued, they go for where the money is.

Well, they’re reporting the Grokster settlement is $50M. Hmmm, now Grokster isn’t a public company but if they have $50M in the bank, I’ll eat my iPod. No, no, that’s the value of Wayne’s (Shawn’s) new software. Wayne Rosso, former President of Grokster sold out to the labels a long time ago. His new company is Mashboxx, which should launch later this year.

He and Shawn Fanning have been in bed with any label they could find and were making great headway at Sony/BMG until Clive Davis decapitated their buddy Andy Lack. Andy actually was trying to bring music to the internet and wanted to use Shawn’s Snocap software, which promises to turn P2Ps legit through filtering software. To make sense of all this, we need to go back to the original Napster.

Shawn Fanning, staying up night after night, wrote a program that changed the world. It allowed anyone who downloaded it to find files that had been uploaded onto the internet. It slowly started to catch on, and when it was sued by the labels, written up in Newsweek and then Hank Barry got Hummer to put up $11M, things went nuts and it became the fastest growing application to ever hit the internet.

The labels took the position, hey, it took a lot of work ripping your cultural heritage off of the artists who created it, It’s worth about $12B/year dribbling it back to you, and we want our money. No one is innocent and idealistic enough to invest in these P2Ps now, so they continue to go after Hummer, which is insured. As to the others, they just want them down, take whatever assets are there, which, in most cases there are assets, including the 10 million eyeballs on these sites every year.

So, that’s the five minute skinny on what’s happening with the Grokster settlement and P2P music. What does this have to do with film? Plenty. Remember, Sony is Big Five in both music and film. Next time you go to the theater, or video store, think about this. You could be watching that film in your very own home theater, if you wanted to, whenever you wanted to see it. The technology is there, believe me. Big Entertainment does not want that to happen, at least not yet. While the gun lobby pays $2M/year for access to Congress, Big Entertainment pays $35M. That’s a lot of money, money that they get from you and me when we buy music and film. They pay that money for control over content and distribution, and for Copyright terms of over 75 years!

If this is how you want your money spent, fine. We’ve seen a huge democratization in music and film is following close behind. We’ll continue to see the internet play a bigger and bigger role in the film industry. My concern is that Big Entertainment will continue to slow the growth of the internet as an entertainment delivery system, which it is ideally suited to be, because of their paranoia about control, and their insistence in wringing every possible dollar out of their capital.