Musi has confronted objections to its enterprise practices earlier than. In October 2019, the corporate filed go well with towards a web-based advert community, alleging that it had withheld funds owed for advertisements that ran inside the Musi app. In November that yr, the advert community filed a counter-complaint alleging that it stopped funds after discovering Musi’s enterprise was fraudulent. “Musi was knowingly and illegally ripping music off from YouTube,” the counter-complaint mentioned, alleging that when advertisers came upon, it misplaced over $7 million. A choose granted a request from Musi to dismiss the case with out prejudice in 2020.
Cherie Hu, the founding father of the music-business analysis community Water & Music, described Musi’s interface as utilitarian. It’s a spot to take heed to music and make playlists, and that’s it. Customers don’t see track lyrics, details about upcoming live shows, or any options hinting at collaborations or partnerships with artists. “It’s a really generic method of curating and presenting music,” she says. Even after greater than a decade in operation, it nonetheless feels extra like a brilliant CS scholar’s senior venture quite than knowledgeable product.
Musi claims to not host the music movies its customers stream, as a substitute emphasizing that these movies come from YouTube. These movies seem inside Musi’s personal barebones interface, however some flaunt their origins with watermarks from YouTube or Vevo. Customers have to sit down by video advertisements proper after they open Musi and may then stream uninterrupted audio, however video advertisements play silently each few songs whereas the music continues. The app additionally shows banner advertisements, however customers can take away all advertisements from the app for a one-time payment of $5.99.
In contrast to its main rivals, Musi doesn’t provide a obtain perform, so the music stops with out entry to the web. “Candidly, this received’t be a function ever, as a result of restrictions set in place by YouTube,” a Musi help account told a fan final yr who requested on Reddit if an offline mode was coming.
James Grimmelmann, a professor of digital and web regulation at Cornell College, says the way in which Musi operates raises numerous questions. “Is that this copyright infringement? A license for YouTube won’t be a license to Musi,” he says. “Does this violate YouTube’s phrases of service in a method that YouTube might minimize it off?” As of now, the solutions are unclear.
One unknown is whether or not taking part in a track on Musi will lead to the identical quantity of revenue for an artist as it will if performed immediately on YouTube, particularly as streaming payouts calculations depend on a wide range of components. The Musi help account on Reddit has told listeners that it does, with out offering any additional particulars or proof. Additionally it is unclear whether or not a rights holder who needs to take away their music from Musi would have a transparent mechanism to take action with out additionally pulling it from YouTube.
By tapping into YouTube on this method, Musi seems to have pulled off one thing exceptional: Constructing a booming enterprise in streaming music with out taking over any of the legwork of putting offers with labels and distributors. That causes David Herlihy, a copyright lawyer and music business professor at Northeastern College, to explain Musi as a “backside feeder.” He believes the app has skated by up to now as a result of it’s not technically breaking any legal guidelines. “It’s authorized,” he says. “They’re linking to YouTube, and YouTube has licenses.”
