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Raising Barriers to Entry into the Music Business

An anonymous reader writes "MP3newswire.net has an interesting commentary, inspired it seems by the woes of the Webcasting community. Basically they are saying that the RIAA is less concerned about piracy and more about the low barrier of entry into the online music business. For example, most slashdotters right now can start their own radio streams or distribute music files for next to nothing, just download the appropriate freeware and go. Through lawsuits and the DMCA the entertainment conglomerates are trying to make such acts much more expensive. So expensive that it is no longer affordable for the "average Joe" to trade or broadcast. The article makes a good argument on how the Internet has empowered individuals and artists to affordably express themselves online, and how a threatened record industry wants to stop that." Update: 10/20 6:55pm EST by C : More news from the webcasting front can be found in the article...

Rusty reports: "Friday afternoon, the RIAA and SoundExchange announced a temporary payment plan and fee reprieve for small webcasters while congress considers legislation.. Basically, by Monday, Oct 21st, small webcasters will need to pay a $500 a year minimum fee ($2500 max). While this rate still may be a problem for hobbyist webcasters, it is lower than the $2500-$6500 minimum that HR5469 called out.

From the RIAA's SoundExchange site:

"Any webcaster that qualifies as an 'eligible small webcaster' under H.R. 5469 will not be required to pay on October 20 the per performance (.0762 cents) royalties otherwise due under the Librarian of Congress' decision of July 8, 2002.

Instead, by October 21st, these eligible small webcasters may instead pay only the $500 annual minimum fee set by the Librarian of Congress for each year or portion thereof they have been in operation since 1998 (a maximum of $2500) until this Congress has had the opportunity to act on the pending legislation."
This still provides no relief for Live365, although their appeal hasn't been heard yet."

Ann Gabriel writes the following in response to Rusty's report from our last article on webcasting:

It appears that the message being sent to me in the response by SOMA FM's Rusty is that since HR 5469 does not directly affect me, I should sit quietly by and watch this travesty play itself out without saying anything.

What happened with HR 5469 directly affects EVERYONE is the webcasting community and to pretend otherwise is a joke.

There is nothing wrong with the fact that a group of people set out to negotiate a private deal for themselves intending to save themselves from the retroactive royalties that will come due on October 20, 2002.

But there is something horribly wrong with the FACT that what began as a private negotiation ended up being turned into a piece of legislation forced as a yolk around the necks of people who had no say in the matter.

I am tired of being asked as a member of the webcasting industry to accept something so horribly wrong just because some people think this deal was "the best they could get."

To sit by and accept the events that led up to the negotiations and the formation of the actual bill language is something I cannot do.

To me it would be like being invited over to lunch and expecting to eat Chicken Salad - and then being served Chicken S**t. There might be a large portion of the webcasting community who can stomach that, but I can't.

The RIAA never had any intention of dealing fairly, honestly and respectfully with the webcasting industry. Those that sat down privately to negotiate a deal for themselves did so in their own best interest and for their own individual reasons. I don't believe there was anything wrong with that.

But when the self-serving agenda of a few becomes something that is foisted upon the community as a whole, then I cannot, must not and will not stand by and accept such an American Injustice.

It is patently clear to me that the IWA and the VOW are separate organizations. To that end if you read my open letter carefully you will see that I point out the deal was NOT negotiated on behalf of the IWA and it's members, of which I was one until last week.

Just because people are claiming right now that HR 5469 in its present form will not really hurt the industry does not mean that is the truth. The only entity that HR 5469 helps is the RIAA and it is a sad truth that they care nothing about the industry they are destroying.

Ann Gabriel
Gabriel Media Inc.
Brian Hurley of Detroit Industrial also had his response to Rusty's words from that article.

In case you haven't had a chance, here's the latest article from The Register on the state of HR5469 as it was introduced to the Senate, earlier this week. And as a bit of a wrap up to this roller coaster week, this Reuter's article serves to provide a nice summary of the situation so far.

14 of 272 comments (clear)

  1. duh? by dermusikman · · Score: 5, Interesting

    i thought this rather clear from the very beginning... or perhaps i assumed too much.

    i really came to understand just how much power we have (and how little they do) when my father suggested the industry was going to develop a new medium and that CDs would be obsolete, i rebutted: "well, the RIAA may make something new, maybe even better - but CDs won't die easily. anyone can publish their own music, now, at a nominal cost..."

    they have lost the power because they lost the monopoly. and they're scared as hell. that seems to be typical in many industries now...

  2. Re:RIAA by Mahtar · · Score: 5, Interesting

    I loathe the RIAA etc. as much as the next geek, but what hellhole do you people live in that CD's cost 18 dollars? Ok, Canada aside.

    Prices from local media play (shitty pop stuff, I know):

    Avril Lavigne - Let Go - 14 dollars
    Linkin Park - Reanimation - 14 dollars
    James Taylor - October Road - 14 dollars
    Santana - Shaman - 15 dollars

    Less popular, though better, stuff:

    Angel's Egg - Gong - 13 dollars
    Erpland - Ozric Tentacles - 13 dollars
    Close To The Edge - Yes - 13 dollars
    Leftoverture - Kansas - 11 dollars

    And so on and so forth. If you want to make a case against the RIAA, by all means, do so. But please stop artificially inflating CD prices. It just hurts ones credibility, in the end.

  3. non-RIAA music by r5t8i6y3 · · Score: 5, Interesting

    there a quite a few Internet radio stations that don't broadcast RIAA music.

    what i'm interested in is what RIAA could due to make this impossible, because this is something that will weaken RIAA in the long run.

    put another way, what can RIAA do to prevent non-RIAA music from becoming more and more popular?

  4. The Ball is in our Court by bwt · · Score: 5, Interesting

    The ball really is in our court. The barrier to entry IS lower IF you are publishing music that grants the right to play it. The RIAA controls huge amounts of music that will never be legal to stream for free, but that doesn't mean that if I go out and make my own music that I can't make it "free music" as in "free software". This situation is NO different than the battle against proprietary software. Instead of trying to get RIAA music for free, we need to promote all new music.

    I really don't see why it would be so hard to set up a net radio station and say "send us your music under a licence that allows it and we'll play it". Frankly, if somebody could post a link of a net station doing that right now, I'd be listening too it.

    People out there need to stop whining about how evil the RIAA is, that is old news. Just make, play, and listen to free music. That's all it takes.

  5. Dinosaurs Will Die by ralphus · · Score: 5, Interesting
    NOFX, indie punk band says it best:

    Sit back watch it crumble, see the drowning watch the fall
    I feel just terrible about it, that's sarcasm, let it burn
    I'm gonna make at toast when it falls apart
    I'm gonna raise my glass above my heart
    Then someone shouts that's what they get!
    For all the years of hit and run for all the piss broke bands on VH one
    Where did all their money go? Don't we all know?
    Parasitic music industry as it destroys itself
    We'll show them how it's supposed to be

    Music written from devotion not ambition, not for fame
    Zero people are exploited there are no tricks up our sleeve
    Were gonna fight against the mass appeal
    Were gonna kill the seven record deal
    Make records that have more then one good song
    The dinosaurs will slowly die and I do believe no one will cry
    I'm just fucking glad I'm gonna be there to watch the fall
    Prehistoric music industry three feet in la brea tar
    Extinction never felt so good

    If you think anyone will feel badly you are sadly mistaken
    The time has come for evolution, fuck collusion, kill the big five
    What ever happened to the handshake?
    whatever happened to deals no one would break?
    whatever happened to integrity?
    It's still there, it always was for playing music just because
    A million reasons why all dinosaurs must (will) die !!!!

    --
    Revolutions are never about freedom or justice. They're about who's going to be top dog. -- Kilgore Trout
  6. Replace the word "music" with "software..." by erik_fredricks · · Score: 5, Interesting

    ...and this sounds like the same behavior Uncled Sam attacked Microsoft over. When the majors smell competition from an indie label (such as Matador), the simply buy and appropriate it. When that fails, they do their best to make it utterly impossible for someone to get started in the business without their "help."

    --

    THE GOOD HUMOR MAN CAN ONLY BE PUSHED SO FAR
    Bart Simpson on chalkboard in episode 2F18

  7. It All Started With Punk! by szyzyg · · Score: 5, Interesting

    At least in the UK, it was all about rebellion and doing it yourself, destroying that crappy prog-rock that had taken over the world. Studio production costs were the barrier, and everyone was producing albums with choirs and orchestras. Anyone remember King Arthur & The Holy Grail.... On Ice?

    Punk bands were recording tracks onto 2 track tape in their bedrooms and pressing up a few hundred 7"s to sell. The costs were low and there was a huge explosion in musical diversity. Then.... it all kinda went away for a bit, suddenly synth bands were everything and synths cost a load of money, production values went up again and the music business regained some control over what was getting released. But... the computer technology that was so expensive in the early 80's obeyed Moore's law and the gear came down in price quickly. By '86 we start to see the first house records coming out of chicago. Artists would create reel to rell versions of their latest productions to try out live, then they'd tweak it until it was time to press up some vinyl.

    Then it crossed the atlantic and the UK rave scene suddenly grew up out of bedroom acts. Orbital talk about producing 'Chime' for the cost of a high quality blank tape. Anyone doing electronic music could sidestept eh expensive recording studios, press up a few hundred 12" records and have an underground hit. As time went on the electronic tools got better and better, and the producers got better too, expanding the range of music coming out of their bedroom studios.

    Then we have the advent of the recordable CD and variable pitch CD players, now you didn;t even need to press up 12"s or carry around tapes which had a habit of getting chewed up (the first acid house record famously got destroyed by the tape machine - 'Acid Trax' originally had a vocal, but that version was lost). About the same time the internet really got going and people began sharing mp2's on download sites so people could get hot tracks without waiting for them to be released. Later mp3 came along with better sound quality and smaller file sizes.

    The music industry of course ignored all this, except for the occasional crossover electronic track used in commercials.

    In november '97 I released mp3serv - the first live microcasting radio system, it was a bitch to setup, but a few people used it to do live radio from PC's. A year later Shoutcast brought the concept to windows PC's. Then web services like myplay made radio possible using nothing more than a web browser.

    Barriers to entry are always getting knocked down, technology is really good at solving some types of problem.

  8. Really nothing new by Nick+Arnett · · Score: 5, Interesting

    These are companies who have been accustomed for decades to domination of the industry through their control of distribution. They have consistently rejected new technology that would threaten that control, even when it was clear that consumers wanted it.

    IIRC, in 1985, I wrote a piece for Rolling Stone about a company, Personics, that had a system that would allow people to make custom audio cassettes at high quality and speed in music stores. People loved it because it was what they were doing ANYWAY -- making tapes of their favorite songs in the order they wanted. But the record companies used their control of music copyrights to deny Personics access to popular music. And this was in spite of the fact that it partially solved the enormous cost of returns from music stores (50 percent) and the lost sales when sudden hits weren't in stock (and most hits are sudden hits).

    Here we are 17 years later and they're still abusing copyright to control distribution of music. Personic's founder had a good idea -- create a compulsory license for music distribution, similar to the one that exists for music performance.

    Nick

  9. Re:Prevention? by Jungle+guy · · Score: 5, Interesting
    I live in Brazil, an and artist named "Lobao" has done just that. He was tired of being ripped off by record companies, that wouldn't pay him his copyright fees (as they control the retail channel and can underestimate the sellings), and started his own record company. His marketing strategy is based on his website, where you can buy his Cds, his shows and word-of-mouth - he was well-know before doing that.

    He is not interested in fighting Napster or Kazaa, as most of the songs you find there are MP3s in the 128 bitrate area - real fans aren't satisfied with them. To win the piracy, he simply sets the price of his records to a half or a third of other companies. As people see this as a fair price, they are willing to pay for it and support the artist.

    Now his label is promoting new artists, who wouldn't have a chance in the big, payola driven, record companies.

  10. This keeps coming up. by FreeLinux · · Score: 5, Interesting

    I'll get moderated to hell for this, but.....

    There is an glimmer of truth to the article's line of argument but, the low cost and ease of publishing by the internet has long been touted as one of its major advantages. To an extent it certainly is true, the internet does empower the "little man". But, there is much more to it and Slashdotters seem unwilling to acknowledge this.

    The fact is that publishers of art, specifically musicians need more than an inexpensive distribution channel. They need two other things, talent and, more so, marketing.

    I'm sure that there are numerous extremely talented musicians out there that we will never hear of and it has nothing to do with the RIAA controlling streaming. Their obscurity will be because they lack a powerful marketing arm promoting their work. This marketing power is what the RIAA members or recording labels provide. Without the marketing power of the labels almost all musicians will fade into obscurity regardless of what distribution channels are available to them.

    Regardless of anyone's willingness to accept this fact it is clearly born out today. For the past 5 to 10 years musicians have had the ability to publish and distribute their productions at a very low cost. Yet, there has yet to be a single artist who has achieved wide-spread popularity or fame through these channels.

    Conversely, there are countless "artists", that are household names today, who haven't even a smidgen of talent. There are dozens of Top 10 performers that would still be growing corn in Kansas or washing cars in London if it weren't for the powerful marketing of the big labels.

    Now be honest, could the Spice Girls have sold any significant number of albums had they gone it on their own and distributed through the internet? Would Brittney be flashing her belly button for Pepsi or, would she be doing Country & Western in some sleazy dive in Ohio for $8 an hour?

  11. The RIAA helps make software more robust by Jeremi · · Score: 5, Interesting
    The RIAA's draconian tactics play same role of pesticides or antibiotics in the Internet "ecosystem". Their laws and lawyers are able to destroy 99% of the "pests", but the remaining 1% which are resistant to their attacks then have a clear playing field to play in.


    The death of Napster-style centralized p2p lead to the dominance of Kazaa-style distributed p2p, and the death of traditional streaming will lead to the dominance of distributed p2p streaming.


    Please take some time to write the RIAA and thank them for their support in advancing the state of the art in free content distribution. :^)

    --


    I don't care if it's 90,000 hectares. That lake was not my doing.
  12. www.rantradio.com by Perianwyr+Stormcrow · · Score: 5, Interesting

    RantRadio does this- and in fact it's managed to get licenses to play its music from the labels representing artists it plays.

    And they are always looking for new things.

    --

    What we call folk wisdom is often no more than a kind of expedient stupidity.-Edward Abbey

  13. You people buy music? by NewtonsLaw · · Score: 5, Interesting

    Hell, what's all the bitching about?

    The RIAA charges a broadcaster for the right to distribute their music by RF, IP or whatever -- so when it arrives on my TV, radio or computer then it's already been paid for.

    Bearing this in mind, I simply capture and record the music I want onto CDR (MPEG-1 is fine) and also rip the audio tracks to MP3 format.

    My library of music is not as large as some -- but it contains all of the chart-music I like and it has only cost me a few $ for CDRs.

    If the RIAA or whoever, doesn't want me recording this stuff then don't broadcast it.

    Hell, I've got a great collection of stuff in MPEG and MP3 format -- and I've never ever used Napster, Kazza or any of the other P2P networks -- it all just arrives by RF, delivered by broadcasters who have paid the royalties.

    If the RIAA demand their right to earn money from broadcasts but still condemn my recording activities then they should sanction those in their own ranks (such as Sony) who aid and abet people like myself by selling us mini-Disk players/media, audio cassette players/media, VCRs/media, CD burners, etc.

    Perhaps the bottom line is that the recording industry is trying to make a huge fortune from a product that is really only worth a small one. Of course to do that, you must have a monopoly, charge more than the product is really worth, and preferably -- charge multiple times for the same service/product.

    The current situation (regarding broadcast and bitching about piracy) is somewhat akin to handing a child some candy and then slapping them upside the head for eating it.

    It seems that the RIAA wants its cake, eat it, and then eat it again -- all at our expense.

  14. Re:RIAA != The Music Industry by fini · · Score: 5, Interesting

    Great, but that won't prevent the RIAA of harassing small webcasters playing your music unless you explicitly waive in written the CARP fees and the publisher royalties (aka "mechanical" fees) in a way which is easy to administer for the webcasters. Call that an anti-RIAA license. If they can point to these licenses, that will help the webcasters to defend themselves when the jackbooted RIAA lawyers come crashing at the door.

    The webcasters will in any case be burdened by the obligation of keeping an exact log of anything they broadcast. Not easy as it sounds. Think about a live webcast from a club when the DJ himself has no idea where the f**k half the tunes in his mix are coming from. There is an urgent need for a system to track and propagate anti-RIAA licenses embedded in the music files.

    But more important, the legal system on copyright is now based on a presumption of guilt. And that, my friend, is wrong, plain wrong.

    --
    SNS Not Sig