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Still More RIAA News

We just did an article about the RIAA's mendacity with statistics, and here come some more: first, someone has gone to the trouble to deconstruct their income figures over the past few years, showing that the RIAA's lack of investment in new releases is in itself sufficient to explain any dropping sales, and second, this website concerning the music industry settling a price-fixing lawsuit, which I believe is this one, filed two years ago.

116 of 246 comments (clear)

  1. Hang on a second by ottffssent · · Score: 2, Funny

    Ok. Let me see if I've got this straight. I fill out that form and the RIAA will give me some money to buy a DVD with?

  2. Nice work by mickwd · · Score: 2, Insightful

    But telling Slashdot won't achieve much - most people here already have a particular opinion on the RIAA.

    Good luck with getting the message across to the public at large, to people who matter, and to people who make and shape laws.

  3. Quibble by squiggleslash · · Score: 5, Interesting
    We just did an article about the RIAA's mendacity with statistics, and here come some more: first, someone has gone to the trouble to deconstruct their income figures over the past few years, showing that the RIAA's lack of investment in new releases is in itself sufficient to explain any dropping sales, and second, this website concerning the music industry settling a price-fixing lawsuit, which I believe is this one, filed two years ago.
    Ok, first off: The RIAA is not a record producer or publisher. It's an industry group that represents producers and publishers. I assume the comment suggesting that the RIAA hasn't invested in new releases actually means that RIAA members have not invested in new releases, or even that record producers in general have not invested.

    I point this out because it gets grating every time it's suggested that the RIAA is some giant monopoly that controls what gets published and whatnot. It isn't. That's about as sane as headlining a report describing a "going postal" type massacre as "NRA goes on shooting rampage in post office".

    The RIAA is an industry association. It does not control its members, its members control it.

    --
    You are not alone. This is not normal. None of this is normal.
    1. Re:Quibble by Mr_Dyqik · · Score: 4, Insightful

      > The RIAA is an industry association. It does not control its members, its members control it

      And therefore, its members control what it says, and what its priorities are. Its members are saying that piracy is the problem, so the RIAA says priacy is the problem, and by complaining about the RIAA you are complaining about all the members of the RIAA.

    2. Re:Quibble by Guppy06 · · Score: 5, Interesting

      "I point this out because it gets grating every time it's suggested that the RIAA is some giant monopoly that controls what gets published and whatnot. It isn't."

      It's a price-fixing cartel that has established oligopoly control of the entire market, just like OPEC. I feel it's perfectly justified to call its actions "monopolistic" since they're identical to what a monopolistic entity (like Microsoft) would do.

      I've heard of splitting hairs before, but sheesh...

    3. Re:Quibble by theonetruekeebler · · Score: 5, Informative
      The RIAA is not a record producer or publisher. It's an industry group that represents producers and publishers. [...] I point this out because it gets grating every time it's suggested that the RIAA is some giant monopoly that controls what gets published and whatnot. It isn't.
      It is not a single-entity monopoly; rather, it is a trust. This is where anti-trust gets its name.

      (Oversimlification follows Back in the day, trusts (e.g. the bourbon trust, the railroad trust) were organizations of the major companies in an industry. The trust's members would all play by the trust's rules, and the trust's rules often included ways to prevent non-trust companies from surviving. In the case of the railroad trust, for example, they would charge exhorbitant fees to connect local lines to trust-owned main lines; or about once a year they would design and patent new car-connectors, again charging exhorbitant licensing fees to use them. In other words, they would drive their competitors into ruin, then buy them out for a pittance.

      Doubtless, the RIAA and its members have worked very carefully to avoid appearing to be a trust in any legal sense, but as the lawsuit referenced in this article claimed, the RIAA has been used as a way to improperly fix prices among its members.

      --
      This is not my sandwich.
    4. Re:Quibble by Eric+Damron · · Score: 2

      "The RIAA is an industry association. It does not control its members, its members control it."

      Do you not think that the heads of the major recording labels have control over the RIAA??

      --
      The race isn't always to the swift... but that's the way to bet!
  4. I'm sure that the RIAA scaled back supply... by Apathy+costs+bills · · Score: 2, Funny

    They scaled back supply because they knew that Napster would pick up the slack.

    (-;

    NOT!

    --
    Kill Trolls Dead. Here's
  5. Copyright by oliverthered · · Score: 2, Funny

    'gone to the trouble to deconstruct their income figures', Bad idea, there clearly not facts and so the RIAA can claim copyright violations.

    --
    thank God the internet isn't a human right.
    1. Re:Copyright by PurpleFloyd · · Score: 2

      Concerts are expensive to put on; the fact that they make huge profits doesn't change the initial cost. If you could invest $20 million and get back $50 million, you would have made a costly investment. You would also be making a profitable investment. The two are not opposed to one another.

      --

      That's it. I'm no longer part of Team Sanity.
  6. in my perspective by greechneb · · Score: 5, Insightful

    I'd be much more willing to buy CD's if they were not insanely expensive.

    Most new CD's cost around $15-$20... Considering I usually buy a CD mainly for 2 or 3 tracks, thats about $5 or more for a single song.

    Or, I could buy the singles, and pay about $5 a song

    Gee, that really makes me want to buy CD's. I'll stick with Kazaa Lite, Gnutella, or something.

    The only time I buy a CD anymore is when it is a small band that I want to support, and then I usually buy from their website.

    1. Re:in my perspective by LotusFlower · · Score: 3, Interesting
      Most new CD's cost around $15-$20... Considering I usually buy a CD mainly for 2 or 3 tracks, thats about $5 or more for a single song.

      Here in the UK, most new CD's cost £15-£20, which (according to the Universal Currency Converter) is about $24-$32 at the moment.

      We get it worse over here by far, and the RIAA and MP3 aren't in the news nearly as much as over there.

      I may be accused of whining / trolling etc, but some things just get blown out of proportion.

      --
      I married Miss Right. I just didn't know her first name was 'Always.'
    2. Re:in my perspective by SnAzBaZ · · Score: 3, Informative

      That's so untrue. The most expensive CD's from amazon.co.uk are £15-£20, usually rare imports. But generally CD's are £10 - £15 www.cd-wow.com do cd's for a flat £8.99 INCLUDING P&P - and that includes all the top75 albums plus loads more.

    3. Re:in my perspective by slutdot · · Score: 2

      I agree that CDs prices are getting out of hand but the expense really doesn't bother me when I get to enjoy my purchase. It's the newer crap that's out there that keeps me from increasing those quoted figures. I just don't really listen to a whole lot of RIAA-induced music but there are a few exceptions such as Bowie, U2 and older modern rock stuff. I'd spend the money if I think I'd like it but I don't see that happening with any of the new bands that are out there. However, I do spend a shitload of money on indie labels...mainly because industrial is ignored by the big labels. That's fine with me, I'd rather give my money to labels that put their collective asses on the line when they support such a small segment of the industry anyway.

    4. Re:in my perspective by andymac · · Score: 2

      Totally. I'll buy a DVD with hours of good entertainment that I have already previewed/seen and know to be woth the $$ for $20 before I'll buy a CD for that price.

      --
      "Content's a bitch."
    5. Re:in my perspective by glesga_kiss · · Score: 2

      Yeah, but most CD sales are still through traditional shops, who do charge at least £15 for a new release.

    6. Re:in my perspective by Jeff+DeMaagd · · Score: 2


      This is redundant.

      Frankly, I don't know where I can find a $20 CD audio. Canada? Likely more, I am guessing. In the US, I usually spend between $12 and $15.

    7. Re:in my perspective by reezle · · Score: 2

      The only part of the article that doesn't quite jibe is when he draws the conclusion:
      Units are Down. Dollar figures are not down by quite as much. Therefore you jacked your prices up too much.

      This could as easily be explained by: Consumers aren't running to the store to buy the 20 year old collection of crap for $10, and are only buying CD's when it's a new release for $15

      Setting up paper targets to knock down weakens the argument as a whole. Beside this item, though, the article was a great read...

    8. Re:in my perspective by w3woody · · Score: 2

      A friend of my brother made the following observation, which (I believe) gets to the point of the RIAA's troubles.

      "Why should I go out and plunk down $17.99 for a CD, when for $19.99 I can buy a DVD movie?"

      With portable DVD movie players dropping in price to the same price range as portable CD players were a few years ago, I'm starting to see something very interesting going on. Instead of seeing some guy behind the counter at the local bookstore listening to his CD collection, I'm now starting to see the same guy watch a movie while sitting behind the counter.

    9. Re:in my perspective by orbital3 · · Score: 2

      I hate to be a "me too", but in this case it's entirely true, because I've already put my money where my mouth is. I really haven't bought many CDs lately, because most of the music I've gotten into recently is weird IDM that's really hard to find.

      But last week I picked up Aaliyah's new I Care For You album despite not being a big fan of her work, only having liked a couple of her songs. Why? The CD was only $9 AND came with a DVD with 9 of her videos and a 12 minute behind-the-scenes featurette.

      Last night, this behavior was repeated when I picked up Chevelle's Wonder What's Next for $6 at Best Buy despite only ever having heard two of their songs, one of which was a couple years ago and thus not on this album. This one, too, came with a video and behind-the-scenes footage, albeit not on a nice shiny DVD. I don't even know whether it's really good yet, but do you see, RIAA? I _am_ willing to pay to try new artists when I'm not making a $15-$20 gamble and there's at least potential for the album to not entirely suck ass.

      There's a ton of CDs I'd like to buy, but which I can't and won't buy for the prices they're available for. $9 with a DVD full of extras? I could only wish that were the norm.

    10. Re:in my perspective by ManxStef · · Score: 2, Interesting

      Depending on where you are.

      Here in the Isle of Man there are now only two record stores, HMV and Switched On Records. Yes, you can do mail order but there's nothing as convenient as being able to buy something straight away at a store.

      HMV shut down all the local shops by pricing them out of the market, when they first arrived, but now have an average (non-sale) price of £18.99 for a CD, which is just extortionate.

      Switch On survives because the owner Gid works hard and is enthusiastic about what he does, and mainly 'cause he isn't in direct competition with HMV, targetting vinyl and DJs instead. And he supports local bands, allowing them to sell their CDs through his shop with little/no markup - something HMV are not willing to do AT ALL (company policy apparently).

      In conclusion I'd agree that CDs are way too expensive over here, but what can the consumer do about it? Personally I DON'T download music, but I support local bands a lot, buy secondhand whereever possible, and if I can't get it secondhand I'll wait for a sale until I can get the CD I want for
      Cheers,

    11. Re:in my perspective by Jeff+DeMaagd · · Score: 2

      FYE and many other mall stores is going to charge much more than others, which is typically at SRP, and should not be used as an indicator of average CD sell prices, because they pretty much are at the upper outliers.

    12. Re:in my perspective by DragonMagic · · Score: 2

      Here's a stranger difference:

      Movies don't pay to get into theaters, or to get on playlists, or even to push their videos onto video stations. They simply pay for the advertising on TV and other movies, and the movie theaters are usually forced (some) or more inclined to show only those movies rated by the MPAA. Most newspapers won't advertise or allow advertised any movie which isn't rated, or is rated NC-17.

      So that $20 DVD (I've even seen some releases of classics for $5 new) can easily fly through due to the fact that people WANT to see that movie. The $17 CD (Still can't find any $5 new releases) has to pay to get itself noticed on the major markets, has to pay to get some notice in music stores, and has to pay to get noticed on MTV. People won't want to listen to it unless it knows it's there, and music is drowning out in the world of Movies, Computers and Video Games.

      --

      Human nature is the same everywhere; the modes only are different. -- Earl of Chesterfield
    13. Re:in my perspective by MrResistor · · Score: 2

      I'd be much more willing to buy CD's if they were not insanely expensive.

      Most people would, and that point has already been proven with VHS. I remember back in the '80s when getting a movie on VHS could run as high as $80, everybody and their third uncle had a shelf full blank tapes that they'd copied 2-3 movies that they'd rented onto. Priacy was rampant, and nobody felt even the tiniest bit of guilt about it.

      Who pirates VHS now? Nobody I know. Why bother when you can just buy a new copy, cover art and all, for $10?

      About 10 years ago there was a small store in my town that sold new CDs for $8-13, and they did pretty brisk business. Granted, they mostly carried indie stuff, but for 8 bucks I'm willing to check out a band I've never heard of, and in fact I did quite frequently. I even found a few that I liked! ;-)

      The funny thing is, I have no problem dropping $40 for 4 or 5 CDs, but at $20 each there's an even chance that I won't buy 1, even though I've got that same $40 in my pocket.

      What the RIAA needs to realize is that piracy is the dark side of supply and demand. If they price their stuff too high, piracy kicks in to bring the average price down to where it should be. If they dropped the price of a CD by $5, they would easily make up what they'd lose per individual sale through volume, as it becomes less worthwhile to pirate and more attractive to try something new.

      You can't legislate your way out of the Law of Supply and Demand any more than you can legislate yourself out of the Law of Gravity.

      I should note that the store I mentioned above didn't go out of business because they weren't making enough money. The building owner decided they really wanted a hair salon there (which failed in short order) and the guy who owned the store moved to the Bay Area (IIRC). The hair salon idea was fueled by the repeated attempts to keep local kids from being visible to the tourists, since my town labors under the delusion that it's economy is dependent on tourism (easily proven false, but there's no need to go into that here).

      --
      Under capitalism man exploits man. Under communism it's the other way around.
    14. Re:in my perspective by poot_rootbeer · · Score: 2


      Or, you could stop patronizing so-called musicians who are content to fill out three-quarters of an album with garbage.

      No CD I've bought in the past 3 years (excluding impulse buys from the $1.99 used-CD bin) has had more than 1 or 2 bad songs on it. It's because I give my money to musicians who care about their product.

  7. groups with power by DJ+Rubbie · · Score: 2, Insightful

    As usual, groups with relative power will alter and hide statistics if they really want to get their point of view across, especially when they are beseiged by FUD. On a side note, there are 4 CD's I wanted to buy but didn't, because of them.

    --
    Please direct all bug reports to /dev/null
    1. Re:groups with power by 91degrees · · Score: 4, Informative

      Something that peopler keep missing is they charge things twice. They talk about royalties, and then about the recording and marketing costs.

      What they don't mention is that part of the recording and merketing costs are charged to the band (Source: courtney Love in Salon article)

      Secondly, a large chunk of the money paid by the record industry is paid to .... The record industry. They can employ themselves to do the marketing. The record publisher doesn't even need to make a profit if it can cause other parts of the group to make a profit.

  8. insight ? by olip · · Score: 4, Insightful

    from the article : why is it that sales didn't start declining until AFTER the RIAA had Napster shut down?

    kazaa, morpheus, audiogalaxy, gnutella...

    frankly, can anyone (good or vilain) pretend that closing napster possibly changed anything in online music trading habits ? and hence in any sales reports an correlation analysis whatsoever ?
    I wish the author was honest.
    O.

    1. Re:insight ? by dallask · · Score: 2, Insightful
      Closeing Napster DID affect the online music trading "industry"...

      • It caused a massiave influx of other online services.
      • It served to bring the MP3 market to the public eye. (in its final year, napster grew by millions of users)
      • It took away arguably the most relyable and fastest way of finding MP3s, but opened the way for the second rate services to rapidly expand.
      I also believe that closeing napster ultamately hurt the RIAA...
      --
      The Code Ninja is swift with his tool, precise in his delivery, and deadly accurate in his execution.
    2. Re:insight ? by MindStalker · · Score: 2, Interesting

      Well "closing" napster didn't but people leaving napster (first because of the filtering and the knowledge that they would be shut down, then the actual shutdown) to use other programs, kazaa etc. Did actually significantly change the p2p world. Napsters chat rooms where filled with people discusing music and its software was all about recommending new music to others. kazaa and the like are simply about searching for music you know of and downloading it. The community feel is completly removed. Its not longer about sharing with others the music you love, and simply about getting free music the quickest way possible.

    3. Re:insight ? by MeNeXT · · Score: 2
      How was he not honest?


      He is quoting the RIAA stats and makes his point as RIAA is trying to make theirs. Where are the facts that poeple have gone to kazaa, morpheus or what ever to get their music? Are you claiming that the only problem affecting the Music industry is piracy? Did you read the full article?


      I hope he manages to prove his point on July 4, 2003...I would hate to think that there is so little original material out there...

      --
      DRM? No thanks, I'll just get it somewhere else...
    4. Re:insight ? by glesga_kiss · · Score: 2
      It took away arguably the most relyable and fastest way of finding MP3s, but opened the way for the second rate services to rapidly expand.

      You're looking back with those tinted sunglasses, Napster was very buggy. I remember the following problems with it:

      • You could not resume a partial file, so you had to get it in one go or retry from the start
      • It would crash now and again
      • You couldn't do multi-point downloads
      • It had a habit of cutting the last few bytes from the track, losing the ID3 info and causing premature song ends

      IMHO, the new ones are better, but they are of course building on the foundations of Napster.

    5. Re:insight ? by glesga_kiss · · Score: 5, Informative
      kazaa and the like are simply about searching for music you know of and downloading it. The community feel is completly removed.

      WinMX and AudioGalaxy both had chat rooms to discuss anything, including new music. WinMX also has a instant messaging system, and I've come across many great artists through talking to people on it. But, I prefer AllMusic for looking up new music, their "related artists" feature is pretty good.

      I don't know why everyone prefers Kazza, or places it at the forefront of any p2p discussion. WinMX is much more configurable and you get great results if you know how to use it. It's like comparing Notepad with vi, sure notpad may be easier to figure out, but it's pretty limited.

      Kazza is also full of spyware. I'm constantly pointing this out to friends that run it and are completely unaware of this.

    6. Re:insight ? by lennart78 · · Score: 2

      It also scattered the P2P-communitiy from 1 app to a lot of small app. Controlling Napster might have been a hell of a job, so they shut it down. Now they have to shut down about 10 P2P-networks, let alone think about controlling it...

    7. Re:insight ? by Elwood+P+Dowd · · Score: 2

      No, I think his comment is fair. Simply because kazaa, morpheus, audiogalaxy, and gnutella were not going strong immediately after napster died. With Napster, people like my mom were tempted by how easy stealing music was. There were a good few months where people like my geeky roommates were totally unsure of the best way to steal music. Gnutella was *way* not up to snuff.

      So sure, maybe now there are the same number of P2P users as there were with Napster's heyday. But when sales started declining, there weren't. Right? Iduno, I could be wrong.

      --

      There are no trails. There are no trees out here.
    8. Re:insight ? by racerx509 · · Score: 2

      Why kazaa?

      1. Ease of use. Kazaa is basically plug and play. For the life of me, I've never been able to find anything worthwhile on WinMX or log into any good servers. Its hard to find any good movies or software on there. Granted, the MP3 selection is decent, it dosn't hold a candle to Audio Galaxy or Napster in their hey days, or even kazaa right now (Imho).

      2. Spyware. True, the regular kazaa is riddled with spyware, but there is an easy way to get rid of it. Its called kazaa lite. Getting kazaa lite is easy, and has all the features of the regular kazaa with zero fat. I still use kazaa over any of the others because frankly, its better.

      --
      13 year old white supremacists are shitty web designers.
    9. Re:insight ? by Rakarra · · Score: 2
      I don't know why everyone prefers Kazza, or places it at the forefront of any p2p discussion. WinMX is much more configurable a

      Possibly because WinMX is the most wasteful program I've ever had the "privilage" of using. It constantly uses LOTS of bandwidth, with no option to turn that off. It's probably the searches due to its decentralized nature, another advantage of the old Napster over WinMX. No wonder so many universities and businesses try to block it. Hell, if I administered a network here, I'd try to block it, not for piracy concerns, but just that it uses so much damned bandwidth all the time.

  9. Hilary Rosen eating from a dumpster by medscaper · · Score: 3, Funny
    Y'know, I won't be happy (and am probably joined by many of the rest of the /. crowd) until I read the Oprah interview in three years about how they found Hilary Rosen living behind a record store somewhere, homeless, eating out of a dumpster to survive.

    Of course, that means I'd have to live with the thought that Oprah is still around in 3 years, but that's a pain I can easily live with.

    --
    Any sufficiently well-organized Government is indistinguishable from bullshit.
    1. Re:Hilary Rosen eating from a dumpster by Pope · · Score: 2

      Well, there's not a lot of food to be found in a dumpster behind a record store ;)

      --
      It doesn't mean much now, it's built for the future.
    2. Re:Hilary Rosen eating from a dumpster by medscaper · · Score: 2
      Well, there's not a lot of food to be found in a dumpster behind a record store ;)

      Uhhh, yeah. That's sorta the point. :)

      --
      Any sufficiently well-organized Government is indistinguishable from bullshit.
    3. Re:Hilary Rosen eating from a dumpster by bughunter · · Score: 2
      I'd have to live with the thought that Oprah is still around in 3 years, but that's a pain I can easily live with

      Uh, exactly how much pain can you live with? My fiancee firmly predicts that Oprah will run for President within a decade.

      And the really scary part is that, put up against any of the major party candidates of the past 30 years, I'd vote for her!

      --
      I can see the fnords!
  10. Unit cost by jeepliberty · · Score: 5, Insightful

    Back in the mid 1980s when CDs first came out you had a choice of LP, CD, or Tape. The typical list price for a new release LP or tape was $8.99. The CD list price was $16.99.

    Their reason: There was a backlog of over a year to manufacture "back catalog releases". They (record industry) said the price high price of CD was because of the manufacturing process, as well as supply and demand.

    Well for CDs there's no backlog now, they use less raw material, and provide less artwork. And yet the CD price remains inflated.

    Does the artist get more royalties for CD than a LP or cassette? I think not.

    1. Re:Unit cost by lennart78 · · Score: 2

      They might argue that a cd delivers better audio quality. They might even have a point there. But why don't we use an equal system to reward artistic quality?

      I will gladly reward an artist who puts his/her heart and soul into his/her music, but why should I pay for an untalented tart around whom a musical concept is worked out by a bunch of producers, and all she has to do walk around in ultra-short skirts?

      The system as we know it is not supporting art, it's just supporting sales. The record industry has held a monopoly in creating professional sounding music and distributing it on a large scale, but today's technology allows everyone to do it him/herself.

      Instead of trying to break the RIAA, maybe we should just ignore them. Let the little kids have their Britney Spears and NSync, let the real artist create their music in an atmosphere which supports creativity, and use the internet for distribution.

    2. Re:Unit cost by glesga_kiss · · Score: 2
      But cds are only 44.1khz so they arent better quality

      Dollar for dollar, they are. You need to spend a relative fortune to get a system that plays vinyl better than your average CD player.

    3. Re:Unit cost by Dephex+Twin · · Score: 2
      They might argue that a cd delivers better audio quality. They might even have a point there.

      In that case, my computer should cost $90 trillion because it is millions of times faster than the supercomputers of the 50s that only nations could afford.

      When a new type of medium or device is created, the cost is initially higher and then when the technology has matured, it usually becomes much cheaper to produce. If the music industry could make that argument about CDs, then just about every other industry could make similar claims. It's absurd.

      My point is, no, they definitely don't have a point there.
      --

      If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    4. Re:Unit cost by xdroop · · Score: 2
      Oh, you walk right past the answer, and miss it completely:

      They (record industry) said the price high price of CD was because of the manufacturing process, as well as supply and demand.

      (emphasis mine)

      Capitalism is wonderful. It says that if you can sell enough of an item at $25, then that article is worth $25 -- even if it only costs you $2.50 to make and distribute. You are under no obligation to sell the item at a price reflecting the cost, it only reflects the supply of the item, and the demand for the item. If you can find enough people to buy that item at that cost, then that is what it is worth. If it costs you more to make an item than you get back by selling it, you go out of business (or demand government subsidies).

      The demand is there; and the RIAA's members make a tidy sum selling CDs at a higher price than the cost of manufacturing them. And it won't change one bit until people stop buying CDs at the inflated prices.

      Ain't America great!

      --
      you should read everything on the internet as if it had "but I'm probably talking out of my ass" appended to it.
    5. Re:Unit cost by Deagol · · Score: 2
      I will gladly reward an artist who puts his/her heart and soul into his/her music, but why should I pay for an untalented tart around whom a musical concept is worked out by a bunch of producers, and all she has to do walk around in ultra-short skirts?

      You want an admittedly contrived act? Well check out Tatu. It seems that the've taken the single-babe act and added a touch of lesbianism that makes Madonna's early acts seem pretty tame.

      Yeah, they're pretty hot (IMO). But really... isn't this going a bit too far? I guess since under-aged girls can't do porn, then must really be pushing the envelope to sell tickets/albums here.

      Personally, with as contrived as these acts are, I think Vivid Entertainment should just get into the music business. Can you imagine the turnout for Raquel Darrian's first tour? Instead of 20,000 screaming teenage girls, you'd have 20,000 panting middle-aged male porn fans. Talk about a scary crowd.

    6. Re:Unit cost by SheepHead · · Score: 3, Interesting
      Does the artist get more royalties for CD than a LP or cassette? I think not.

      Actually, most bands (IAN in the music industry) get less for CD sales, because of "Breakage." I quote from Moses Avalon:

      Breakage is a left over scam from the old days when vinyl records were fragile and crumbled while shipping. The label would not pay the artist for broken records and so they estimated the "breakage" at 10% and deducted it from the amount of records sold. They still deduct this 10%, even though CDs are made of an almost indestructible material...
      He also mentions that you (as an artist) will be deducted the cost of packaging your album, which is usually 25% for CDs and 20% for tapes and LPs. Now, everyone knows that CD liners are pretty small and involve a lot less color printing than LPs... read Moses' site, it's very interesting.

      SheepHead

      --
      7d9e63e9501751ff4bf9307989d5623d *SheepHead
    7. Re:Unit cost by Kanon · · Score: 2

      I'm quite impressed with Tatu as a band. Sure they don't write their own songs and their entire image seems contrived and planned for them but I'm very impressed with the quality of their music and singing. They certainly don't sound like the average manufactured pop-act (Fellow UKians will agree with me there).

      And they're not actually underage by UK standards either :)

    8. Re:Unit cost by Daniel+Phillips · · Score: 2

      Capitalism is wonderful. It says that if you can sell enough of an item at $25, then that article is worth $25 -- even if it only costs you $2.50 to make and distribute. You are under no obligation to sell the item at a price reflecting the cost, it only reflects the supply of the item, and the demand for the item. If you can find enough people to buy that item at that cost, then that is what it is worth. If it costs you more to make an item than you get back by selling it, you go out of business (or demand government subsidies).

      You ignored the fact that natural market forces can be distorted by, for example, monopoly control of promotional distribution channels, which the RIAA enjoys. The corollary to this is that, to maintain this market distortion, alternative channels of promotion and distribution must be prevented from developing. The RIAA, backed by a helpful clutch of lawmakers, has set out methodically to do this, and that is why consumers have every right to complain about the high, monopoly fueled prices of CDs, not to mention the underhanded tactics employed by the RIAA to maintain them.

      --
      Have you got your LWN subscription yet?
  11. RTFA by ajs · · Score: 5, Interesting

    The article referenced is quite clear on this point. It is quotoing the RIAA's announcements regarding income industry-wide (though presumably the RIAA's definitaion of "industry-wide" refers only to it's members).

    The differnce between saying that the RIAA's income statistics are incorrect and saying that the NRA shot someone is that the NRA was likely not involved in the shooting, and likely did not colude to make the shooting happen the way it did.

    The RIAA is directly reporting these statistics. They are the RIAA's collective industry statistics. Also, the RIAA members have been shown to actively colude to make these statistics what they are through price-fixing and other tactics.

    On the point of calling the RIAA a monopoly, I think it's perfectly fair. Just as a corporation can act as a single entity even though it is made up of many individuals, so too does the RIAA act as a single entity for the purposes of controling retail sales of music and lobbying (i.e. buying politicians) for music-industry causes like passing the DMCA. BMI did not lobby to pass the DMCA independantly, the RIAA did. This is a tactic for gaining control over the market and over the technologies that affect the market by the RIAA.

    Monopoly tactics? Yep.

    1. Re:RTFA by banzai51 · · Score: 5, Informative
      On the point of calling the RIAA a monopoly, I think it's perfectly fair.

      Fair? Yes. Accurate? No. The RIAA is a cartel.

    2. Re:RTFA by ajs · · Score: 2

      Good point. I guess I was equating monopoly and cartel, but they really aren't quite the same. Thanks for pointing it out.

    3. Re:RTFA by ajs · · Score: 2

      In general, when people use the term "lie with statistics", what they mean is producing statistics that obfuscate or mislead.

      While doing so in a court could earn you the censure of the judge and even a contempt citation, it is not perjury.

      For example, I could take the stand and say that, according to my carefully conducted research, 99 out of 100 people prefer curried yak shavings to McDonalds Hamburgers.

      If asked if I conducted the survey in a country where curried yak-shavings are a popular snack-food, I would have to tell the truth, but otherwise I've lead the court to believe what I want without actualy lying.

      IANAL, YMMV.

  12. This settlement is crap by gricholson75 · · Score: 2, Informative

    The total amount alotted for disbursement (sp?) is 75 millon and if the total per claim is less than $5, they don't have to send out cash, just product. So if more than 15 millon claims are filed (likely) then some non-profit is just going to get a bunch of left over Moby cd's, I doubt that any cash will every even change hands.
    Read the settlement, its a hoot.

  13. amazed by DZign · · Score: 2, Interesting

    Am I the only one to be amazed by the weird
    complains the RIAA keeps on making and thinks
    people still believes what they say ?

    About all the missing sales they get because
    people download mp3s - do they really believe
    every mp3 downloaded is a cd less sold ??
    Do they think someone with thousands of mp3s
    would buy thousand cds ? We don't have unlimited
    budgets..

    And now they're complaining they don't get as
    many profit as the previous years;
    Hey we live in a capitalistic world..
    the market also changes, and you should evolve
    your product.
    If your product doesn't sell anymore you've
    only got yourself to complain to..

    You don't hear McD complain these days that
    people buy less burgers and pizzas or other
    take-aways should be closed or are illegal ?

  14. One mistake by the author by ec_hack · · Score: 4, Insightful
    From the article:

    "Global piracy on the physical side costs the recording industry over $4 billion* a year. That doesn't even include losses on-line. While the physical piracy problem is not new, our markets continued to expand. Now that consumer purchasing is threatened as well, the impact of all piracy is greater." concluded Rosen.

    The source of the $4 billion figure is attributed to "IFPI, the international association representing the recording industry worldwide." Good thing she passed that one off on someone else. I just don't see where the justification for that figure could possibly come from. The numbers are simply not there. In short, this is total bullshit.

    Maybe not. The author of the article goes on to argue that file swapping, which may have killed the singles market, couldn't add up to this amount. Alas, he didn't read the quote properly. $4 billion is what they attribute to physical piracy, not online swapping. There are parts of the world where you can buy just about any CD, music or software, for a fraction of the price of retail. In a street market in Thailand I saw MS Office and NT Server for $20 (with activation keys), music CDs of current US and European pop releases for $5, PS games for $5-10. All were in jewel cases with artwork.

    Physical piracy is their real enemy, not file sharing.

  15. Re:many perspectives by MacAndrew · · Score: 5, Interesting

    Amen.

    I'm glad also not to hear you (quite) say, "Well, I'd stop stealing if they'd just lower prices." Stealing will always be free (esp. when P2P cuts out the street corner middle man in the trenchcoat), and they can never compete with free. Just say "no" to extortion. :)

    CD prices have fallen surprisingly little in 20 years -- about a third in inflation-adjusted dollars. I don't remember prices like this with vinyl, and when CD's came along there was a hefty premium for them. Yes, they provided higher quality, but I bet their production costs are now far lower.

    I think the RIAA members need to do some serious introspection about their business model. That doesn't mean ignoring infringement, but realizing that the boat is sinking because of a lot of larger holes in the hull. Direct sales are a great concept; other methods to lower costs must exist. Note however that we do live in a society that somehow manages to buy $130 Nikes that cost $30 wholesale. (Astonishingly, Nike only makes a few dollars profit on each pair.) The record industry is far from the only industry with big markups, so don't rush to any conclusions.

    The RIAA members should not abuse market statistics or fix prices to promote their cause. Resentful consumers should not steal to promote theirs. Now, all join hands and sing....

    The funny thing is I'm sure 99% of the public has no idea what all this talk is about. The one-quarter who do don't even talk to the three-eighths of the 10% of the last ninth who uh... Well, I'd like to see some statistics on that, I'm 110% certain.

  16. This just in... by Eusebo · · Score: 5, Funny

    According to RIAA President Hillary Rosen, "107% of the music consumers surveyed believe our statistics."

    --
    It is quite simple
    Haiku should not be funny
    Try a Senryu
    1. Re:This just in... by Craig+Maloney · · Score: 4, Funny

      Only ten people believed the statistic, but they REALLY believed it, right?

    2. Re:This just in... by ruin · · Score: 2

      In reality, only 10.7% believed the RIAA's statistics, but those people believed with a credulity *far* above the national average, resulting in belief that is basicly the *equivalent* of 107%.

      --
      share and enjoy
  17. Oh yeah? by Kibo · · Score: 2

    Well *I* won't be satisfied until I see a VH1 behind the music in two years about how Hilary Rosen is in Soviet Russia selling her body for 8-tracks!

    --
    --Jimmy has fancy plans; and pants to match.
  18. If you people are going to continue ... by burgburgburg · · Score: 4, Funny

    to ruthlessly point out the factual, logical and mathematical "imprecisions" that underly the fight against savage piracy, then you are going to make it that much more difficult for the industry to successfully try and execute these heinous criminals who plague society.

    1. Re:If you people are going to continue ... by Crash+Culligan · · Score: 2
      SWAT team member: "Captain, it's worse than we thought -- they have a computer with a CD burner. It may have a net connection as well."

      Captain: "I see. Confiscate that equipment and then shoot those entertainment criminals! " (A paraphrasing from a cartoon in a college newspaper many, many years ago)

      --
      You cannot truly appreciate Dilbert until you read it in the original Klingon.
  19. Quote from article by $carab · · Score: 4, Informative

    Disproving the theory that "You'll never go broke underestimating the intelligence of the American public" (P.T. Barnum ??), U.S. buyers have apparently come to the realization that $3.50 to $5.50 is too damn much to pay for one song.

    I believe the quote is "No one ever went broke underestimating the taste of the American public." from H.L. Mencken, the noted satirist.

    P.T. Barnum's quote is "There's a sucker born every minute."

  20. Hate RIAA? Sign up for your free $20 by mbstone · · Score: 4, Interesting

    As the article mentions, there is a proposed settlement in a class action price fixing lawsuit filed by 43 state attorneys general against several major record companies and music retailers.

    The terms of the settlement are that people who bought music CDs, records or cassettes between 1/1/95 and 12/22/00 can apply for a refund of up to $20.

    But: Like most class action settlements, the terms are not necessarily favorable to consumers. For example, the settlement fund is $67,375,000 in cash plus $75,700,000 "worth of" prerecorded CDs. If "the number of claims filed would result in refunds of less than $5.00 per claimant, there will be no cash distribution to individual consumers. Rather, the cash portion of the settlement shall be distributed to mot-for-profit, charitable, governmental or public entities[.]"

    Find out more at musiccdsettlement.com

    Disclaimer: The poster (me) expresses no opinion as to the merits (if any) of this class action settlement, and this post is not legal advice nor is it an advertisement or solicitation for legal services.

    1. Re:Hate RIAA? Sign up for your free $20 by pla · · Score: 2

      Disclaimer: The poster (me) expresses no opinion as to the merits (if any) of this class action settlement, and this post is not legal advice nor is it an advertisement or solicitation for legal services.

      Screw "tact", the settlement absolutely SUCKS. No question about it. No ambiguity, or moderating factors. Suck, suck, suckity-suck.

      Not so much the individual payouts, which if I had only bought half a dozen CDs in that time, I would consider reasonable (assuming, of course, that they don't get so many claimants that it drives the disbursement to below $5 each).

      But two major problems exist - First, it doesn't take into account how much music each person bought (personally, I bought on the order of 200 CDs in the period under consideration - Which has dropped to around 4 in the past two years due to the RIAA's political and ethical policies). And second, NEW CDS STILL COST $15-$20 EACH!

      This makes the SECOND time (that I know of) that the RIAA has gotten a beat-down for price fixing, yet they continue to do it.

      Yet another complete BS class-action suit. Until the FTC tells them "lower prices or don't sell in the US", which I doubt they can (and certainly wouldn't if they could), no improvement will happen. Why? It costs the RIAA (members) *FAR* less to pay a combined $140M once per decade than to allow fair market competition to lower prices by 50% or so. Start getting settlements in the tens of billions, and they *might* pay attention (at once per decade, that would eat into around 10% of their income... Noticeable, at least). This paltry little mosquito doesn't even make them reach down and scratch.

    2. Re:Hate RIAA? Sign up for your free $20 by Danse · · Score: 2

      TRANSLATION: The lawyers are getting paid bigtime. The rest of you are out of luck.

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    3. Re:Hate RIAA? Sign up for your free $20 by mbstone · · Score: 2

      Screw "tact", the settlement absolutely SUCKS. No question about it. No ambiguity, or moderating factors. Suck, suck, suckity-suck.

      You said it, I didn't.

      Yet another complete BS class-action suit.

      You can always opt-out, and go down to small claims court and file your own lawsuit. Bring all the receipts you saved for the overpriced records, tapes, and CDs you bought during the period in question. Hope you didn't miss the statute of limitations for those 8-tracks!

    4. Re:Hate RIAA? Sign up for your free $20 by mbogosian · · Score: 2

      The terms of the settlement are that people who bought music CDs, records or cassettes between 1/1/95 and 12/22/00 can apply for a refund of up to $20.

      Yeah, capped at $20: ``The number of claims filed will determine the actual amount of the individual refund but will not exceed $20.00 per claimant.'' During those years, I probably bought over 300 CDs. I'm going to get my $20 along with that guy that bought one copy of Paul's Boutique. The lawyers will get the rest.

      That's not to mention that it's a settlement. How does this stop the practice from going on? CDs prices still haven't dropped.

      That doesn't mean I'm not going to join (I'm lazy), but I don't see how it fixes things.

  21. One thing that bothers me by bitmason · · Score: 2, Interesting

    in the Ziemann report. There's a great deal of emphasis placed on the decline of the number of releases over the past couple of years. However, this whole train of reasoning seems to be based on the following quote:

    "Each year, of the approximately 27,000 new releases that hit the market, the major labels release about 7,000 new CD titles and after production, recording, promotion and distribution costs, most never sell enough to recover these costs, let alone make a profit." (from the RIAA Price of a CD page).

    Now, perhaps the number of releases *has* declined markedly over the past couple of years. But it strikes me as an awful big assumption to just plug in this 27,000 number as the number of new releases for each of the past two years.

    Again, not saying it's wrong. I'm just saying that it could as well be an average over the past decade or an inexact number thrown out in a context other than market data. It's a slender thread on which to hang a big chunk of analysis.

  22. Re:many perspectives by Kibo · · Score: 2, Interesting

    Well, it used to cost about 10 cents to make the cd itself. The packaging costs more. I think about a buck 50 goes to the artist, and about the same to the store IIRC. The rest goes to build Hilary Rosens ultra-secure super-secret super-villain lair, a (gently) used Echelon terminal, and a closet full of body molded rubber piracy fighting suits. This is what has proved to be so expensive, they keep having to let them out. True to form, she loves loves loves her ding dongs.

    And if you think that's markup, I've got one word for you my friend. Plastics!

    --
    --Jimmy has fancy plans; and pants to match.
  23. Were the Horse Salesmen this mad at Henry Ford? by PeeweeJD · · Score: 2, Interesting

    The recording industry's business is out of date. They are trying to sell us horses when we all want cars. There are better ways to get music than paying $20 for a CD that only has 1 good song on it.

    Could you imagine this country if an RIAA 'like' organization formed from horse trading companies in the early 1900's to try to keep Henry Ford from putting them out of business? Saying Henry Ford's Model T violated the HTIAA's patent on selling transportation methods.

    Sure downloading copyrighted material is illegal, but they have to do somethign about it. Obviously people are fed up with $20 CDs.

  24. Re:many perspectives by lquam · · Score: 3, Informative
    CD prices have fallen surprisingly little in 20 years -- about a third in inflation-adjusted dollars. I don't remember prices like this with vinyl, and when CD's came along there was a hefty premium for them. Yes, they provided higher quality, but I bet their production costs are now far lower.


    Actually, CDs were cheaper to produce than vinyl then as well as now. Of course nowadays, there is no correlation with the cost to produce a CD and its price--the cost of manufacturing is so low that if marketing et. al. was left out of the mix money could be made selling CDs at $2/pop.

    As for quality, early CDs provided far lower quality than vinyl initially. Yeah, we got rid of the ticks, pops, scratches, and rumbles, but great violence was done to the music by the early digital recording and mastering technology which often couldn't muster more than 13 or 14-bits of resolution at best (and often far worse). To this day, many prefer vinyl and only the recent SACD and DVD-A technologies can give well produced vinyl a run for its money on sound quality. I'm not a luddite and most of my music is now on CD, but I'm not happy about it.

    Better for convenience, yes. Better for sound, decidedly not.

    --Len
  25. Your description of mendacity is full of minacity.

    --

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

  26. Barter? by webword · · Score: 2

    What does the RIAA think of barter? I have been searching for good resources on this issue but I haven't found very much useful information.

  27. Pondering out loud... by TVmisGuided · · Score: 2

    To quote Sam Clemens, "There are three kinds of lies...lies, damned lies and statistics." Trouble is, the American press (and by extension, the general American public) sees numbers and believes them to be absolute truth. The running joke/slogan seems to be "garbage in, gospel out".

    It all sort of makes me wonder, though...what would happen to these numbers if the Generally Accepted Accounting Practices were applied?

    Just my two cents' worth...save up the change for a root beer or something.

    --
    All the world's an analog stage, and digital circuits play only bit parts.
  28. RIAA Doesn't Collect Data? by webword · · Score: 4, Insightful

    From the Cost of a CD from the RIAA web site:

    "While the RIAA does not collect information on the specific costs that make up the price of a CD, there are many factors that go into the overall cost of a CD -- and the plastic it's pressed on, is among the least significant."

    They admit they don't really know the costs. They don't have the data so they speak from ignorance. Or, they do have the data but don't want to admit what they know.

    1. Re:RIAA Doesn't Collect Data? by GreyyGuy · · Score: 2

      That is the RIAA playing a shell game. It is possible that the RIAA itself does not collect information on the cost of a CD, but you can be guarenteed that each of their members has the costs charted down to the last penny.

  29. Re:many perspectives by MacAndrew · · Score: 4, Insightful

    I don't think it's quite that sinister, though your portrayal of the music industry is considerably sexier than mine.

    I won't even ask what you mean by "she loves loves loves her ding dongs." (Lest any guys get misplaced notions about Hilary, read this.) I mean, I like ding dongs as much as the next guy, but....

    I've heard figures for the artist's cut ranging form 50 to $2. I don't know what's accurate, but assume it depends a lot on how much leverage the act has -- there's a difference between Bruce Springsteen and WeEatToads but their CD's are both expensive. (Springsteen may be cheaper because of volume.) (And I'm not starting a f*cking debate about musical tastes!) Must be nice to be a solo artist rather than have to split the coins with other band members.

    As for markup, we rarely think about it as we happily pay for it. Next time you see a box of Wheaties, ask yourself how much the wheat cost. Probably less than a raw CD. Now look at that pretty and informative 4-color box it comes in. Which costs more? Then look around at the supermarket. How much does it cost to run? A lot. What does this have to do with the price of wheat? Nothing, but it has a heck of a lot to do with the price of Wheaties.

  30. Re:many perspectives by goon+america · · Score: 5, Insightful
    Stealing will always be free (esp. when P2P cuts out the street corner middle man in the trenchcoat), and they can never compete with free.

    Stealing is not free!!

    That's a misconception. It doesn't cost any *money* to steal, but stealing still has cost. Most notable is time cost -- it takes time to locate and download a song you want. And even then once you're done you can't be sure you didn't get a lot of data errors in the track or different songs in the album were recorded with different loudness, etc.

    Theoretically, if the recording industry priced CDs below ((peoples' value of own time * length of time it takes to find the cd) + value of quality) then the could compete with piracy on a price level. Obviously everyone's value of their time is different so they'll never be able to get everyone. For me, if CDs cost $5-$10 I would never mess around with Kazaa, and I think a lot of other people wouldn't either. $20? No, thanks.

  31. How about doing this by tanveer1979 · · Score: 2

    We talk a lot about supporting indie bands and buying their music from their websites and all. But where is all this. All the media is in the big control
    AOL,Murdoch, etc., so they wont give people information. How about the slashdot editors putting up a page that gets regularly updated.. with information about indie and small bands.. what genre are they, where can people buy their music and stuff.
    I feel that rather than talking about extreme steps like boycott etc., slashdot should put up a page so that atleast slashdotters hit on it.... son it will show up on googles results too! More information the people will make things better. We can have an ask slashdot story about indie and small bands and then the most informative posts can be used to compose the page initially.

    --
    My Aurora : http://www.youtube.com/watch?v=o91ZsGwJYyg
    FB : https://www.facebook.com/TanveersPhotography
  32. Declining revenue by sh0rtie · · Score: 2

    I posted a similar comment to yesterdays RIAA story

    Of course their declining record sales have nothing to do with the public is now fed up of mass marketed pop music where record contracts are won not by original musical talent and song writing , but by nieve and desperate individuals in f***ing competitions while real talent falls into the gutter, leaving a trail of destruction in its path while the instigators get rich.

    The only thing killing music is not kids downloading mp3's or pirating dvds at market stalls but by the industry killing itself, kids are simply getting ripped off by these marketing/record companies and have just started to realise globally they are being taken for idiots

    why is it that so many companies in the industry (or others for that matter), have so much contempt for their customers and choose short term monetary gains instead of actually concentrating on producing superior products ?

  33. Everyone always overlooks the real root motive by ChaosMt · · Score: 4, Insightful

    Here is my email to the author...

    You have posted a great article. It's very informative and insightful and missing a couple important things.

    First, I appreciate your promotion of independent artists and justly compensating them, but I disagree with you're numbers. Let me humbly suggest a different split. 16% for production costs. 34% marketing and bribes (we can dream that clear channel and mtv are with in budget). 16% for the label, 16% for investors and 17% for the band. I don't think anyone would disagree with their cut, but what I'm really trying to express is the rule that you spend twice as much on marketing as you do on R&D. And in this case, the world's demonstrated that marketing often counts more for sales than product quality.

    Second, as the above somewhat illustrates, the real enemy of both the consumer AND the labels is radio consolidation and the evil empire of clear channel and the event venue lackies it holds. They limit our choice and variety. For the artist and labels, they charge too much money. At one time, music was often the program that pulled people in to listen to adds. Because of extravagently high payola.. er, I mean, "promoter" costs through elimination of competition, the radio stations have really become NOTHING BUT ADVERTISING. Ads are paid for, programs are paid for, automate and underpay local talent, buy out the competition and then print your own money. The Conrad Burns '96 telecommunications act did good things, but it brought more harm than good and needs to be corrected. The record labels have much much more to gain from investing in policial bribery to bring back competition than they have from making all their consumers and benifactors criminals.

    Last, that leads to what the REAL issue with RIAA is. The RIAA's end consumer, the people who pay them, are the records labels. The RIAA has to justify thier high costs to the labels every year. Every year, they have to justify the existence of this perpetual parasitic beauracracy. The labels feel that they get good benifits from the current payola system; they just don't like today's prices. If they didn't like it, the lables have plentry of shills to create politicial winds of change. The RIAA's consumer is the labels, NOT THE CONSUMER. They don't care about us; we aren't even the corn in Rosen's shit. They are paid by the labels. What this whole piracy thing is about marketing themselves as relevent to the labels. Let me repeat; the RIAA's emphasis on piracy is their effort to keep getting money from the labels and to start asking them for more money. Yes, of course it's all about money. The RIAA and the labels know the numbers and reasons you cited. They are pursuing what they feel is a safer, more profitable route. The labels are culpable in all of this of course. I just think you need to cite and remember the root motive to all of this non-sense.

    Good Luck!

  34. No harm to the market by Amadodd · · Score: 3, Insightful

    This sentence of Hilary Rosen is often quoted to prove harm filesharing is doing: "When 23 percent of surveyed music consumers say they are not buying more music because they are downloading or copying their music for free, we cannot ignore the impact on the marketplace." And I see that it is used again in this article. What this really means is that 23 percent are not changing their buying habits, and 77 percent are spending more. Where's the harm to their marketplace? This is typical politician double-speak - I can see her laughing everytime she sees it quoted. With the figures they published they are doing better than most anyway.

    --
    Freedom of speech doesn't come with bandwidth.
  35. Someone please help me out here... by sdo1 · · Score: 4, Interesting
    OK, I read the settlement pages.

    Between the dates mentioned (Jan. 1, 1995 to Dec. 22, 2000) I bought hundreds of CDs and LPs. "Up to $20 per claimant" does justice to someone who bought 5 or 10 CDs during that time... but completely screws those who bought a lot more.

    I read the section on my legal rights which states...

    If you do not wish to be a member of the Settlement Group, you may exclude yourself by writing to the Compact Disc MAP Antitrust Litigation Administrator as outlined in the Notice of Proposed Settlement . Your request must be postmarked no later than March 3, 2003. The Court will hold a Fairness Hearing to determine if the proposed Settlement is fair, reasonable and adequate on May 22, 2003, at 10:00 a.m. in Courtroom 2, United States Courthouse, 156 Federal Street, Portland, Maine 04101. If you remain a member of the Settlement Group, you or your counsel have the right to appear before the Court and object to the Settlement. However, you must file a Notice of Intention to Appear and Object as outlined in the Notice of Proposed Settlement. Objections must be filed by March 3, 2003.

    I'd assume that I could opt out of the settlement group and then file a claim independently... but that sounds expensive and time consuming in order to (doubtfully) recover what would be, at most, a couple bucks per CD/LP (maybe $1K total if I calculated that way).

    The other option, and maybe more preferable, would be to become a member of the settlement and then show up a the courthouse to object (Portland, ME is a couple hours away... could be an interesting/educational trip to be sure). Maybe if we could organize a small army of people from nearby with LARGE music collections to come and (hopefully) testify/object. What do you think folks? I'm game.

    -S

    --
    --- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
  36. A true story (Listen RIAA) by christurkel · · Score: 4, Insightful

    The other day I was listening to NPR and they profiled James McMutry, a singer/song writer (he is the son of novelist Larry McMutry, who Lonesome Dove, etc). Larry has a new album out, Saint Mary of the Woods. NPR talked to him and played some samples of his music, which a kind of country/rock/folk fusion. I liked what I heard.

    When I got home I jumped on Gnutella and found a song from his new CD and downloaded it. I liked it. Then I downloaded another and liked it too.

    The next day I went out and bought the CD.

    The RIAA can learn from this. Without being able to sample some songs so I could decide whether or not I wanted to buy the whole CD, I never would have plunked down my cash for an unknown (to me) artist. Thanks to Gnutella, James McMutry made a sale, and got a new fan.

    --

    CDE open sourced! https://sourceforge.net/projects/cdesktopenv/
  37. Fill out Web form, get a check... by dpbsmith · · Score: 2

    Good grief, can it be that simple? I just went to that Web site and it appears as if by spending five minutes filling in a form I have submitted a claim and will eventually receive a small check in the mail.

    (Or did I just give my name, address, date of birth, and last four SS digits to a scam artist?)

    If this is for real, it should be widely publicized.

  38. Re:many perspectives by jkabbe · · Score: 2, Interesting

    I'm glad also not to hear you (quite) say, "Well, I'd stop stealing if they'd just lower prices." Stealing will always be free (esp. when P2P cuts out the street corner middle man in the trenchcoat), and they can never compete with free. Just say "no" to extortion. :)

    It's already been pointed out that downloading has a time cost associated with it. Owning a CD also has a benefit (pretty CD graphics and booklet and a permanent "backup" that I don't need to spend extra for).

    The real problem is that many people are willing to pay $8-10 for a CD but this is usually not an option. Given the choice between paying $18 and paying $0 many people choose $0.

  39. the problem with music by jjjefff · · Score: 2, Interesting
    A lot of you have undoubtedly read this, but it's fairly on-topic, and a great read if you haven't:

    the problem with music, by Steve Albini

  40. Re:many perspectives by MacAndrew · · Score: 2
    The real problem is that many people are willing to pay $8-10 for a CD but this is usually not an option. Given the choice between paying $18 and paying $0 many people choose $0.

    Yes.

    A thought experiment strictly from a buyer perspective:
    At what price would everyone pay?

    At what price would no one pay?

    OK, now plot every datapoint between these extremes, for number of purchases v. price. It's probably some sort of curve with two inflections.

    Finally, pick the ideal point on this curve, factoring in the aggregate moral hazard of theft (that is, how much does it cost to lose a little bit of one's soul and steal).

    Discuss. :)

    Interesting?
  41. JOKE by Alan+Partridge · · Score: 2, Funny

    There's two Disney executives walking across a parking lot when they pass a beautiful girl coming the other way. After they pass, one of the suits says "I fucked her". The other looks suitably impressed "Oh yeah? Out of what?".

    (Replace Disney with your favoured record company du jour.)

    --
    That was classic intercourse!
  42. Re:many perspectives by dnoyeb · · Score: 2

    Sure, nike only makes a few dollars profit per shoe AFTER they subtract the $600 million marketing budget...

  43. **PARANOIA** by TheSHAD0W · · Score: 2

    I'm not sure I want to enter my personal information on this page, especially since they want the last 4 digits of my social security number. Given that sort of info, a crook could do a heck of a lot of damage to me identity-theft-wise.

    Even if Rust Consulting is legit (and I admit, it looks like it is), I'd still worry about the security of their database.

    Guess I'll have to pass up that $20.

  44. Re:many perspectives by Anonym0us+Cow+Herd · · Score: 5, Funny

    It doesn't cost any *money* to steal, but stealing still has cost. Most notable is time cost -- it takes time to locate and download a song you want. And even then once you're done you can't be sure you didn't get a lot of data errors in the track or different songs in the album were recorded with different loudness, etc.

    Agreed. This clearly shows that our large scale piracy systems still need improvement.

    --
    The price of freedom is eternal litigation.
  45. Re:many perspectives by Kibo · · Score: 2

    I, in my overzealous hyperbole, may have mistakenly given the impression that I'm against paying anything above cost.

    I realize that with that markup above margin, I'm buying my time back. I'm totally ok with that. 25% for the store, 25% for the distributor, and hell, why not something for the manufacturer too.

    Even allowing for that, CD's are way way over priced. Without the cartel, CD's would likely be much cheaper. $5 dollars from a random guy on the street? No, probably not. While his production costs may well be higher (or not considering some of what one hears about the Chinese manufacturers), his supply chain is really short, his costs for the card table negligible. But $10 bucks for a new album, which isn't just chock full of crap, and is at least 30 minutes long, isn't that much to ask.

    If the constituent members of the RIAA really have costs so high as to justify use of their super-cartel-ultra-best-friend powers, perhaps they should look into controlling costs rather than illegally manipulating the market to make up the difference. Maybe forcing the market to accept whatever crap the suits think it should like is expensive. I would certainly imagine that acts that promote themselves by word of mouth save on studio time (by sounding decent without special effect wizardry), and advertising.

    Until they do something to address the problem, I have a hard time feeling anything but a dull sense that justice is done when a million petty thieves rob the giant thief swindling millions. But then I'm not a lawyer either.

    --
    --Jimmy has fancy plans; and pants to match.
  46. Re:many perspectives by the-matt-mobile · · Score: 2, Insightful

    Stealing is not free!![...]Most notable is time cost

    I agree that there is a cost to stealing, but I disagree that the cost is time. By the time I drive out to the mall, find a parking spot, walk to the CD store, find the CD, stand in line and buy the CD, walk back to the car, and drive home I could have found the CD on some P2P 5 times over.

    The real cost to those who steal (and to those who don't due to the backlash towards those who do) is economic and/or political. And that's the battle we're losing. It really is more convenient and less time consuming to download music. If the RIAA embraced that fact, they could profit from it. Instead, they're trying to dictate demand based on their desire to supply music in the one way they think they can control, and they still haven't realized that their economic theory is flawed (that is until/unless they manage to litigate their problems away).

  47. Honor System by Boss,+Pointy+Haired · · Score: 2

    How about an honour system for payment of all music and video.

    Fact: Unauthorised digital distribution of copyrighted material is _never_ going to be stopped. Therefore, rather than try and beat it (impossible), accept it.

    The new form of digital distribution is chaotic. Whether it be underground websites, Usenet, Kazaa, let it be.

    However, along with all digital entertainment content, include details of a website from where you can make an honour payment for the material you have obtained. MP3's etc. can use meta-data (ID3 tags etc.) and Video can just display a "Thanks, if you've enjoyed this please pop online and pay us".

  48. Re:many perspectives by MacAndrew · · Score: 3, Insightful

    I have a hard time feeling anything but a dull sense that justice is done when a million petty thieves rob the giant

    That's how they'll quote you, too. :)

  49. howstuffworks.com is a liar by mangu · · Score: 2
    The page you linked to is grossly misstating the facts. Vinyl records have a noise level much higher than the sampling errors in a CD. And no analog pick-up can get even close to 22.05 kHz, the Nyquist limit for a CD.


    I'll grant you that many CDs, perhaps most, do sound much worse than the best vinyl records, but that because the CD offers so much more capability that sound engineers abuse it. CDs can record trebles so high they would melt the solenoid coils in an analog record cutting lathe. CDs can record bass so strong it would make the needle jump off a vinyl record.


    So, indeed, an LP can sound better than a CD, but that's because the CD was badly recorded, not because of any limitation in the digital recording system. Even the cheapest CD player will give you a 100+ dB signal-to-noise ratio, while the absloutely best analog record player, costing in the $10000+ range, will never get more than 75 dB or so.

  50. The cost of the CD itself is hardly anything... by MacOSR · · Score: 2, Informative

    The CD's themselves cost right around $0.08 each at relatively low volumes. This is for 5 color glass mastered cd's. Then, add a cover and 4 color jacket and you are around $0.80 tops. This is shrunk-wrapped, glass mastered cd's ready to go! This cost also includes the glass mastering fees and the film fees ~$750.00. Now, keep in mind these are prices paid to a third company...I hope the recording industry owns their own replication plants. I WILL NOT pay over $10.00 for a music CD! I also have not purchased a music CD since the RIAA started crying two years ago.

  51. S&D by MacAndrew · · Score: 2

    Yep. I assumed inelastic demand to make it simpler.

    OK, now redraw the curve with perfect law enforcement -- every copy is a legitimate copy. What happens? (Not that I think you'll say, but someone will -- no, the music companies do not all go out business.) Where's the optimum price to maximize profit? Where's the "fair" price?

    I'm playing with mostly because these questions affect nearly every discretionary purchase we make. Music CD's are just among the more irritating items.

  52. Liars, Damn liars, and Statisticians by geekee · · Score: 2

    This article is a joke. His conclusions are no more sensible than thos of the RIAA. The only thing that is true from the stats is that cd sales are down after 10 years of growth in sales. The reasons are more complicated than either side will admit. Both the economy and piracy are factors. Saying piracy isn't a factor is delusional. Saying piracy is the only reason is equally delusional.

    --
    Vote for Pedro
  53. Yes, it is legit... by sdo1 · · Score: 2
    (Or did I just give my name, address, date of birth, and last four SS digits to a scam artist?)

    It is legit. This Google search shows that website linked directly from websites of 4 states' AG offices.

    -S

    --
    --- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
  54. Re:many perspectives by goon+america · · Score: 2
    I agree that there is a cost to stealing, but I disagree that the cost is time. ... It really is more convenient and less time consuming to download music.

    I think what you really mean is that there is a relative benefit in time cost of stealing vs. buying, not that stealing does not have a time cost.

    Everyone agrees that the RIAA could profit in all sorts of ways by taking advantage of this fact. Downloadable albums? Sure. Why doesn't the RIAA do this? Because any fuckhead can set up his own music download site, and nobody needs the RIAA record companies to distribute music anymore. Everything that the RIAA says is corporate PR bullshit that people, for some inexplicable reason, take at face value.

  55. Re:many perspectives by MacAndrew · · Score: 2

    Lawyers and executives and musicians and record shop owners and .....

    I was kidding, anyway.

  56. 500,000 opt outs = no settlement! by mbstone · · Score: 2

    There is more unfairness. The plaintiff attorneys general have to release their (your) rights to sue, and there is a consent decree (injunction) that says the companies have to stop fixing prices, but only for a period of 5-10 years depending on the type of business practice involved. Then the defendants could (presumably) resume using Minimum Advertised Prices and other allegedly unfair business practices as alleged in the Third Amended Complaint.

    If Slashdot readers really wanted to throw sand in the gears of the record companies, and if upfront money for legal expenses could be raised, the settlement agreement between the state AGs and the distributors says that if 500,000 people "opt out" of the settlement then the settlement is void and the lawsuit goes forward!

    Suppose 500,000 or some large number of people opted out, hired lawyers, and demanded 1) more than $20; 2) a consent decree of longer duration; 3) removal of the clause that cuts off payments if too many claims are filed; and/or 4) the right to use peer-to-peer music sharing services as a remedy!

    Again, (IAAL and I have to recite these words, sorry) this is not legal advice nor an advertisement nor a solicitation for legal services.

  57. so, who has the mailing list? by mzxfan · · Score: 2, Interesting

    if anyone could get a hold of the RIAA mailing list, then publish this, I bet a few major media outlets will do some pieces on this.

  58. 'Round and 'round we go by symbolic · · Score: 4, Insightful

    No matter what the RIAA does to shamelessly promote the piracy issue, people who illegally download songs are no better. As I've said several times before, a very efficient way to ellicit a change in behavior is to change your own. Stop playing the game. Walk away. Forget the music produced by the RIAA members. Don't buy it, don't steal it...just forget it. What can the RIAA do? Can it pass laws forcing consumers to purchase a certain number of CD's per year? No...the fact is that it can't do anything but change its business model. Rest assured, the current m.o. of stealing and justifying it with a heavy dose of rationalization will accomplish nothing.

  59. cartel? by ebyrob · · Score: 2

    You say "monopoly" I say "trust", you say "cartel" I say "conglomerate". Let's call the whole thing off.

  60. You really want the RIAA & members attention?? by CodeShark · · Score: 3, Insightful
    Bury them with bad news:
    • Stop buying music from the big 5 members of the RIAA (Sony, etc.) that essentially belongs to popular but truly "garbage of the month" purported to be hip, fresh, etc. --from any source.
    • Only buy CDs where there is quality music (your definition not mine) throughout the whole album.
    • Buy independent labels that have good reputations for how they treat their talent, or better yet
    • see if you can find a way to buy from the artists directly or through a direct distribution medium -- i.e. artist to distributor to you, no big five profit
    • Send a snail mail to any local radio station playing crap music from the big 5, suggesting that they play the better music indie labels and suggesting that you'll change your listening habits to their competitor's station if they don't.
    Want to make it hurt even more?
    • Send a copy of each one of the radio station letters to the big 5 studios every time your selection has caused the indie labels make money and the big 5 didn't make a nickel.
    • Send a copy to MTV explaining that you change the channel every time the crap music's video comes on.
    • Maybe send even more copies to the NYT, LA Times, Washington Post etc. Bury the RIAA companies with exposure in the mass media via snail mail barrages and see if they can maintain the same kind of cartel pricing and crap music peddling in the glare of major media. Then you might just get their attention.
    Still interested? or is standing up to the corruption just too much bother?
    --
    ...Open Source isn't the only answer -- but it's almost always a better value than the alternatives...
  61. Stealing has cost by MacAndrew · · Score: 2

    stealing still has cost. Most notable is time cost -- it takes time to locate and download a song you want.

    Hmm. Another interesting point.

    Now, for accounting purposes, what dollar value do we put on that time? How much does your average computer-literate thief charge per hour anyway? Do you have to withhold taxes?

    You are partly right that they will "compete with piracy on a price level" when the cost of the disk is less than the "cost" of the other methods. However, people often value their own time very cheaply; and, technically, stealing is against the law, so merchants shouldn't have to out-compete it. I know you're speaking in practical terms, not legal. I'd like to see how much online custom disk-ordering would costs (the quality would be higher), esp. for legacy stuff with a current promotional budget of $0.00.

    Also, is there a Netflix for music CD's? (Besides my local public library, which has a surprising variety of stuff. Support your libraries!)

    1. Re:Stealing has cost by MacAndrew · · Score: 2

      if you earn $5 an hour, 3 hours is worth $15 to you

      You earn $5? Is that still legal? Or are pirates covered by minimum wage? :)

      More to the point, because it's illegal the choice between buying and burning a CD is not quite as simple as that between paying someone to wash your car and doing it yourself.

      Ethically, nothing coerces theft of a luxury item; it is a self-serving choice.

      widespread piracy is a signal that there is a huge amount of demand by consumers that isn't being met because of overpricing

      Or it is a signal that piracy is exceptionally low cost and low risk?

      My guess is that the labels will be relevant for a long time. Remember when everyone said the internet would drive the big-name media outlets out of business, because everyone could get the "news" from anyone? In the long run the internet instead proved the value of a brand name. As distribution and (maybe) promotion costs erode, the labels can simply ride the declining prices down while maintaining their profit margin. Promotion is necessary, both to get the word out and because, for better or worse, a whole lot of people do buy music on image, just like they do clothes, cars, beer.... But the labels can't compete against ever-easier piracy.

      I'm acknowledging their dilemma, not complimenting their chosen tactics or marketing plan. I'd love to know just how far they could lower prices. I mentioned elsewhere here the huge disparity between costs of manufacture and retail price for many goods. All those middlemen, allowances for waste, promotion, etc.

  62. Re:Not that I am defending the RIAA but by mabinogi · · Score: 2

    Just out of interest, why 1550?

    What happened then to change things?

    --
    Advanced users are users too!
  63. Independant Sales ignored by RobNich · · Score: 2

    The interesting thing here is that as the RIAA members' sales decline (if that is really happening), it's pretty obvious that independant labels' sales may be increasing. In fact, I think it's quit likely that that is what is happening.

    As independant labels are selling more, RIAA members are selling less, and the RIAA is telling everyone that 'sales' or 'profits' are off, without qualifying that with "RIAA members'".

    And the absolutely stunning thing is this quote:

    "The economy was slow and 9/11 interrupted the fourth quarter plans, but, a large factor contributing to the decrease in overall shipments last year is online piracy and CD-burning," said Hilary Rosen, President and CEO of the RIAA.

    How could they possibly prove that?

    --
    Hello little man. I will destroy you!
  64. Re:many perspectives by MacAndrew · · Score: 2

    A couple of trivialities:

    I learned about "paddy wagon" in Chicago, which is well-known for St. Patrick's Day drunkenness. With that and spades, I figure if I'm going to insult someone, I want to do it intentionally.

    On gems -- the aluminum oxide base is called corundum and can be either ruby or sapphire. The tidbit I know about domestic corundum is that it was used to make the finishing touch on the National Monument, a cap made of aluminum, at the time the hot new metal and expensive as heck.

    On Al and corrosion. (I'll read most anything.)