You will be redirected back to your article in seconds

U2 manager slams Internet providers

McGuinness likens ISPs to 'shoplifters'

U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry.

Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.”

“The recorded music industry is in a crisis, and there is crucial help available but not being provided by companies who should be providing that help — not just because it is morally right, but because it is in their commercial interest,” McGuinness said.

He and numerous others speaking on the first day of the confab said the industry was caught between rampant piracy and ISPs’ extortionate terms of trade.

Warner Music prexy Lachie Rutherford pointed out that the 2% of revenues from downloads and ringtones is shared with performers. “There are huge amounts of money being made from music (by portals and carriers) that are not supporting music or radio or magazines,” Rutherford said.

McGuinness targeted many for contributing to the music biz’s ills. “Cable operators, ISPs, device manufacturers, P2P software companies — companies that have used music to drive vast revenues from broadband subscriptions and from advertising. They would argue that they have been neutral bystanders to the spectacular devaluation of music. I don’t believe that is true,” he said.

But McGuinness saved his sharpest criticism for China and Chinese companies.

“ISPs and mobile operators are the business partners of the future for the recorded music business — but they have to share the money in a way that reflects what music is doing for their business,” he said. “That’s true nowhere more than in China. China Mobile makes hundreds of millions of dollars each year from sales of ringtones yet pays a minuscule fraction of that to performers, producers and composers.”

McGuinness said ISPs were unwilling to act against piracy and had ignored music-industry proposals — even though they were not being asked to police the Internet.

More Biz

  • Jon Hendry New Mexico Film Union

    New Mexico Ex-IATSE Official Accused of Sexual Harassment Still Casts Long Shadow

    U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry. Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.” “The recorded music […]

  • Remembering Prince

    Prince Estate Calls Heirs' Bid to Scuttle Tidal Deal 'Meritless'

    U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry. Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.” “The recorded music […]

  • Nag the Vote

    Michelle King Fights 'The Good Fight' to Get Millennials to Show Up for Midterms

    U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry. Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.” “The recorded music […]

  • Gavin Newsome Press

    Democrats Leaning Heavily on Hollywood Support to Win Back House

    U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry. Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.” “The recorded music […]

  • SONOS PATRICK SPENCE

    How Smart-Speaker Maker Sonos Plans to Take on Apple, Google and Amazon

    U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry. Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.” “The recorded music […]

  • Comcast Takes on Disney with Dreamworks

    For Disney or Comcast, the Secret to Snatching Fox May Hinge on Regulators

    U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry. Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.” “The recorded music […]

  • Aki Kaneko

    Oak View Group Names Aki Kaneko VP of Sales & Sponsorships

    U2 manager Paul McGuinness launched a blistering attack on the world’s Internet providers Wednesday, accusing them of strangling the music industry. Speaking at the Music Matters confab in Hong Kong, McGuinness likened ISPs to “shoplifters” and accused them of “turning their heads” away from the music industry’s troubles and “rigging the market.” “The recorded music […]

More From Our Brands

Access exclusive content