We arethere coming up on the end of the year. They will pay for the next five years. Give me a little bit of show me your crystal ball little bit, if you would, what are we going to see yet of the cr be, and one of the consequences . I think you guys have suggested that there would be brought . 25 per hundred streams or pandora has suggested 0. 11. I heart radio suggested to be 5,000. The reality is we think the royalty proposals that were made by the Digital Music services were unfairly low. As it is, your hearing artists and labels complaining about the fact that they cannot build a sustainable business. Not all streaming services are the same, and that is the problem. In terms of the crystal ball , one thing i have learned is not to use them. You cannot predict what will happen. We arewe are hoping that the royalty rates that we get from pandora will go up. They are huge service. They are now in the marketplace. Marketplace. There are public company. They are beginning to try and monetize which is not something they were doing before. They were focused on there ipo. They just wanted more and more listeners. Now they have to try and monetize the Music Service command we hope they will be successful at it. I wanted to follow up there because when we were talking your point was the labels want to see these services succeed because this is how music will be disseminated in the future. Is there sort of a be careful what you wish for to the extent that if we jack up indoors rates they are going to be as fruitful in innovating or doing things that will ultimately be good for members and their artists . How do you find that you get all this music that was satisfying your music tastes, and it became playlist. Then the Ondemand Services realize people dont just one ondemand, they want playlists, too. What you have now is a convergence were pandora has moved from a pure radio model to a very highly Customized Service to the point where people think it is an Ondemand Service dont recognize that for pandora and spot a fight, there are two different models. First but if i you have to pay more than pandora. As a result there is a lot of confusion in the marketplace, and the fact makes is very worried of having pandora not be able to innovate because the fact is that they are innovating into the interactive market and decreasing the benefit of the market. Host is it fair to say the Music Industry was slow to recognize the technological changes that we are making . Well, that is criticism that is often level that us. If you look into what was required to make this happen he would be a little more sympathetic to the plight of the countries. It happened very quickly. The canary in the coal mine, very small files that can be Trading Online way before movies and books and everything else. It did catch us by surprise. Surprise. We also thought that people would want only high quality music. People spend months in the studio perfecting every sound. Who would want to here an mp3 file . It turns out people dead. And then actually the companies that experimented with full album deliveries, to the project with ibm for full album downloads, downloads, mobilize their own joint ventures to create Distribution Systems and so on, but the fact is, Record Companies should stick to making music, not technology, and apple came in and showed how it could be done and done well. Apple created the path for a Download Service that actually worked and that worked for everybody and now has the benefit of being the old model. Instead of selling a physical cd you are selling a file. Thethe same royalty rates supplied relatively easy. The transition to streaming has been nearly complicated. The combination of different rights, something that was not really cover before. It has been much more difficult to transition to streaming than it was to download, yet its happening now. The industry has learned that you cannot change what Consumers Want. If Consumers Want streams that is what they will get, and they have voted that they want streams. Streaming has increased 23 percent just this year over last. Just five years ago it was in the single digits. It is now about 32 percent of revenues and continuing decline. So we have got to transition to streaming. We need to get into the streaming Services Rather revenues are significant. We do very well through spot a five. But we do very poorly from youtube and pandora because they pay royalty rates that are a fraction of what we are getting from spots bona fide and apple music and so on and so forth. The more that we can shift users and Description Services the more remunerative streaming will be an song writers, artists, labels, publishers will be able to make a living with streaming. If we are stuck in a world of statutory license under pandora and youtube has a slightly different situation , let me give you an example. This is an amazing fact. Youtube serves of billions, billions of strains of music every year. Those billions of strains, they are paying is less than we earn from the sale of vinyl records. They are the largest ondemand streaming service in the world, and certainly in the us they are serving a hundred Million People. We earn less than we do from the sale of vinyl records. Something is wrong here. I want to bounce back to the congressional angle. You said it is a tall order, the copyright reform effort that is not worth trying. A lot of people arewould agree with that. It is. But it is worth trying. What if it does not pan out or what if like the action it takes 20 years to get to fruition . What do you do then . Are there some types of private agreements that can be struck to move the ball in the interim . I noi know we saw some of those antipiracy context. Again, if we cannot get that over the finish line what do they do . They do what we have been doing which is cobbled together private sector solutions. Give us examples of what that looks like. There were issues about royalties which are reproductions of distribution, rights, and the question was, do you have to pay for a mechanical a mechanical license when you are streaming, which is usually considered a Public Performance or do you only use aa license from ascap and bmi . Well, we worked out a solution where we agreed on a combined royalty rate about the performance for ascap and bmi and for the mechanical and one allinclusive right. We work that out because it was a practical solution to a legal and practical problem, and we proposed it to the royalty board, propose its of the office. Office. They embodied in regulations commanded is now working. That is an example of finding a practical solution within the confines of the law but in a way that the 1909 legislation did not contemplate. We will continue to look for those kinds of solutions. A lot of the platform say that when you here an artist complaining they have low compensation, its in large part because the labels of the publisher or songwriter or skimming off the top. Sometimes hard to evaluate those claims because we cant see what the deal is look like. We know what sound exchange payments look like, but outside of that context would you agree more transparency is a gooda good thing to educate and get everyone on the same page . We definitely need more transparency. This is a very complicated business and you have very different deals,deals, as we just talked about. They dont realize they are being paid this much. Yet you hear artists withdrawing their music froms bona fide and insisting that it be on youtube. People just dont understand where the money is coming from. More educated artists and managers understanding how all these licenses work are important for everybody. Artists deserve to know how they are being paid and how there work has been used and compensated in order to make it easier for them to get that information. Here is a royalty. Now youve got hundreds, thousands of pages of royalties from all the Different Services and all the different markets not in some less detail. Its not surprising that these issues would arise and we would work through them and find ways to solve them. Can an artist like taylor swift, does she have control over music emerges by . Only in connection with the recording, not with the musical work. She writesshe writes her own songs. She is under a government dissent decree to license music. Under this Consent Decree she could not remove her music from spot a five based on the musical work, but she could based on the fact that she and her record label on the rights of the master recording. Even that is a complicated example of how an artist has some ability to control her destiny, but not a complete ability because of this hybrid license system we are under. We all no congress is busy. What would you like to see them do 1st . Do you expect that to happen . What i would really like to see them do is fix the dmca, this Digital Millennium Copyright Act which was passed in 1998 which means it was written for aol, not google, is still the anti piracy system under which we have to operate, we have to give notice of an illegal copy, and they will take it down. Well, that system does not work and has not worked for years. It is a joke. Yet it is the basis on which some Pirate Services at some legitimate services are able to get no royalties or discounted royalties. We dont know who is putting a legal music on our service and have the responsibility for that. People are using this to get away with basically distributing or music without paying us were paying asked belowmarket rates. We cant cant control piracy or get the value that music deserves so long as dmca remands the test and therefore we would really love to see congress focus on that. 50 billion was the number of illegal downloads. 30 billion30 billion or 50 billion, Something Like that. Has that changed since the licensing Interactive Services have come into being . The streaming services one of the great benefits. They have reduce the incentive for piracy. If you can get all the music you want when you want it why would you bother going to illegal site to download it . Especially since the illegal sites have malware and spamware and adware and all sorts of things you dont want. That has helped. There are all sorts of others. International, sophisticated rings that are engaged in this kind of crime. They make a lot of money, a lot of money for this. The same time as the piracy problem changes. We have been talking with cary sherman of the Recording Association of america and al expires a politico. Thank you. Thank you. Cspan created by americas Cable Companies 35 years ago and brought to you as a Public Service to your local cable or satellite provider. Attorney general Loretta Lynch testifies of the Justice Department oversight hearing, expected to get questions about less fridays terrorist attacks in paris and Syrian Refugees being allowed in the us. Live coverage from the House Judiciary Committee tomorrow morning at 10 00 a. M. Eastern. Later in the day, a senate panel looks at the relationship between the federal government and state and local Law Enforcement. The Senate Judiciary subcommittee hearing is live at 215 eastern. Cspan has your coverage of the road to the white house 20162016 but you will find candidates, speeches, debates, and questions. This year were taking coverage into classrooms across the country with our student camera contest giving students the opportunity to discuss what important issues they want to here the most from the candidates. Follow cspan student can contest and road to the white house coverage 2016 on tv, radio command online at cspan. Org. Cia director john brennan warned fridays attacks in paris are not a oneoff event, and that the militant group has other coordinated terror attacks planned. He spoke at a Global Security event hosted by the center for strategic and international studies. It is a privilege to welcome john brennan. He has he is the director of the Central Intelligence agency. I dont know that anyone is better prepared are equipped for this. John joined the agency 35 years ago. And so imagine having someone so deeply schooled in the foundations of this critical agency, front lines for us everyday. He spent five years in the white house before he got there. This was a long time for anyone. I fear that we might not have him. He has not slept much for the last three days. Delighted that he is here. Please welcome john brennan. [applause] thank you very much. The Global Security form. I had the pleasure of speaking. When i was serving at the white house for Homeland Security and counterterrorism. For our country faces today, i also want to take this opportunity to express publicly my deep appreciation. I think i speak for all of us for adding wisdom and value to the public conversation on global issues. They identify,identify, understand, and successfully address the myriad National Security issues that our nation faces. A very dangerous world indeed. My opening remarks this morning are different from those viewsviewed and finalized in the early afternoon of last friday. Different because our sensibilities and souls have been jarred once again by the horrific and wanton violence perpetrated upon the innocent in the streets, cafes, and concert halls of the beautiful city of paris. Our hearts ache for the scores killed and injured in the savage attacks. Thoughts are with them and their families. Likewise, our condolences and thoughts go out to those killed in the crash of the Russian Airliner a little over two weeks ago in the sinai in egypt. And while we await confirmation of culpability, they each pair the hallmarks of terrorism carried out by the socalled Islamic State of iraq and labonte, and organization of murderous sociopaths that carries out its criminal and morally depraved actions under bogus religious pretense. With its roots in al qaeda and iraq and powered by a large influx of the past several years they have swallowed up large swaths of territory in iraq and syria, brutally killing thousands upon thousands of men, women and children along the way. Not content they have developed an external operation agenda that has now implemented with legal effect. Im sure well talk more about the questionandanswer session. They urgently commit to achieving an even greater an unprecedented level of cooperation, collaboration, information sharing and joint action. The threat demands it. At the cia we work closely with foreign Intelligence Security forces around the globe to advance our share counterterrorism goals. Over the course of many years we have forged broad and deep partnerships with our closest allies in europe such as Great Britain france, and many others. These strategic relationships have been instrumental in helping to knit together a transnational architecture that allows counterterrorism officials and experts to work closely together across southern borders to disrupt terrorist plans and activities, and while many operations have been ported as aa result of strong tensile transnational teamwork tragically not all terrorist plans are covered in time. These strategic counterterrorism relationships need to stretch far beyond the traditional transatlantic environment which is why we are working closely with so Many Services in different parts of the world. For instance, we are working closely with our egyptian partners who are working tirelessly to prevent isil terrorists launching attacks and that derailing political reform and Economic Development objectives. I reiterated the commitment to strengthening counterterrorism partnerships with cairo in a call to my egyptian counterparts just this past weekend. And while washington and moscow have significant policy differences on how best to bring the bloodshed in syria to a close, i have had several conversations with one of my russian counterparts over the past several weeks about ways to strengthen us russian counterterrorism cooperation specifically on the isil threat. Threat. These relationships are an essential adjunct to diplomacy and military operations. By working with foreign partners we enhance Global Security by helping them tackle challenges that threaten us all. And we benefit from a wider net of collection and from the insides of local services, all of which enhance the intelligence we provide to policymakers. The fact is, good intelligence, timely, accurate, and insightful is the cornerstone of almost every aspect of National Security policy today for military action to diplomacy to International Law enforcement. With good intelligence are policymakers can better understand the risks, challenges, as well as the opportunities attendant to key National Security issues which is ever more important given the unprecedentedly complex and overlapping array of major challenges to us and Global Security that we face today. The impression one might get from the daily headline is that the world has become more stable. Indeed, the historical record supports that judgment. In the past three years andhave been more outbreaks of instability than at any time since the collapse of the soviet union