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RIAA Seeks Royalties From Radio

SierraPete writes "First it was Napster; then it was Internet radio; then it was little girls, grandmothers, and dead people. But now our friends at the RIAA are going decidedly low-tech. The LA Times reports that the RIAA wants royalties from radio stations. 70 years ago Congress exempted radio stations from paying royalties to performers and labels because radio helps sell music. But since the labels that make up the RIAA are not getting the cash they desire through sales of CDs, and since Internet and satellite broadcasters are forced to cough up cash to their racket, now the RIAA wants terrestrial radio to pay up as well."

26 of 555 comments (clear)

  1. From the article... by Anonymous Coward · · Score: 5, Insightful

    "Mary Wilson, who with Diana Ross and Florence Ballard formed the original Supremes, said the exemption was unfair and forced older musicians to continue touring to pay their bills."

    Yeah because they should be allowed to sit around all day earning money just because they are so great.

    1. Re:From the article... by 605dave · · Score: 5, Insightful

      That's funny, because the radio station owners are sitting around making money because of how great she was...

      --
      Be kind, for everyone you meet is fighting a difficult battle. - Plato
    2. Re:From the article... by Applekid · · Score: 4, Insightful

      If she's living on royalties then she got shafted by her financial advisor. She's got no investments? No diversification? No income but a piddling royalty check? It's not the radio station's fault.

      Sure the radio stations are making money. If they didn't play Supremes they'd play something else. I remember a buddy who had a show on the campus radio station and often he'd get requests for songs they can't play and he'd tell the callers "yeah, sure, I'll play it, keep listening." I've never felt the need to call a corp radio station but it's probably the same way.

      The stuff they play is just a commodity. At least the smaller costs of running internet radio stations had the semblance of caring about actual music and content.

      For the behemoth MAFIAA every win, every law, every take in their favor is never independant and always a stepping stone to even greater reaches. Next thing you'll know the public will need to pay a fee simply to remember how great a particular song goes.

      If denying Mary Wilson name-brand bon-bons in favor of the off-brand ones keeps them from taking advantage of ANOTHER stepping stone towards the continued bilking of the public at large, I'm all for it.

      --
      More Twoson than Cupertino
    3. Re:From the article... by honkycat · · Score: 5, Insightful

      Right, it's not like they're continuing to provide a service, pay their power bills, employ staff to keep the transmitters working, etc. They're just collecting a paycheck by trampling on her rights. Those millions she already made were not nearly enough compensation for those few hours of music she put on records. Why should she have to continue to be productive to put food on the table? Why can't she just sit and reap the rewards of her creativity the same way the rest of us do?

      Oh... wait...

    4. Re:From the article... by ajs318 · · Score: 4, Insightful

      Absolutely. Every time I turn on a hot tap, I have to pay a fee to the plumber who installed my combi-boiler. Every time I switch on my computer, I have to pay a fee to the electrician who wired up my house. Every time I read a book, I have to pay a fee to the author. Every time my ex-girlfriend places something on the shelves I put up for her, she has to pay a fee to me.

      Oh, wait, that's bollocks. Sorry. You do the work once, you get paid once -- iff you're lucky. That's how it works in The Real World.

      --
      Je fume. Tu fumes. Nous fûmes!
    5. Re:From the article... by *weasel · · Score: 5, Insightful

      it's totally unfair that the guy who bought the house I built sold it for a profit a few years later.
      I mean, I should totally get a cut of absolutely any profit derived from my work at any point in the future!

      Otherwise I'd have to plan for retirement or continue building houses.
      And that doesn't sound fair. Not while people are out there profitting off my work.

      --
      // "Can't clowns and pirates just -try- to get along?"
  2. Pipe Dream by Mercedes308 · · Score: 4, Insightful

    Pfff, it won't fly. The radio industry is too strong collectively for this to work. Plus also how could they even get close to having this accepted internationally?

    --
    And no, I couldn't give a shit what my karma is.
  3. Sounds fair to me by grimJester · · Score: 5, Insightful

    From TFA:

    Mary Wilson, who with Diana Ross and Florence Ballard formed the original Supremes, said the exemption was unfair and forced older musicians to continue touring to pay their bills.

    Yes, it's unfair that people are forced to work to pay their bills. There should be free money for all with no incentive to work. In a perfect world, congress should force everyone to pay record companies money, so record companies could distribute the wealth in whatever way they see fit.

  4. Awww, diddums by larien · · Score: 4, Insightful

    Mary Wilson, who with Diana Ross and Florence Ballard formed the original Supremes, said the exemption was unfair and forced older musicians to continue touring to pay their bills.
    So you have to keep working to get money? What a novel concept. No-one else in the population has to work until retirement age, do they?

    "The creation of music is suffering because of declining sales," said RIAA Chief Executive Mitch Bainwol.
    The implication is that people aren't writing music because they're not getting enough money and no-one will ever want to be in a band because of it. I'll take that with a large pinch of salt. However, the next line really clarifies his position:

    "We clearly have a more difficult time tolerating gaps in revenues that should be there."
    Translation: we're not making enough money.
  5. Double standard by aussie_a · · Score: 3, Insightful

    So wait, the law acknowledges that radio infringing on the rights of musicians is okay because it encourages people to buy the music. However illegally downloading it doesn't do this? WTF? How are the two different. I understand the RIAA's logic here. If one has a particular rule then the other should as well. Now having said that, I think the RIAA and I differ on which rule should be moved to which system ;)

  6. Re:Excellent! by montyzooooma · · Score: 5, Insightful
    "2) RIAA bribes the right people and that law gets reversed, which then costs our country its music-playing radio stations and the music industry loses the majority of its sales."

    As somebody already pointed out the rest of the world gets by paying a fee for radio play. What this WILL mean is that you'll end up with the bland "selection" of national radio that other Western countries have. I was always surprised at how diverse the US music industry was but I didn't realise your radio stations got a free ride. Now it makes sense and I'm sure this would mean less exposure for niche artistes. Gotta love an industry that's trying to hammer nails in its own coffin.

  7. Silly RIAA... by beerdini · · Score: 5, Insightful

    They are attacking their own advertisers now. Most people purchase music after hearing it, which they usually hear it on the radio. Lets fast forward 5 years pretending this is successful. Radio stations are now put out of business because of lawsuits or refusal to pay the RIAA's ransom so as CD sales continue to fall; that will leave the RIAA scratching their heads wondering why, when they just killed their most wide spread advertising tool.

    Whats next? Suing stores that play music inside for shoppers?

  8. Re:Give them what they want! by mibalzonya · · Score: 5, Insightful

    It may also mean less music. Instead of the same 8 songs. We will now have the same six songs.

  9. Re:Give them what they want! by Knight+Thrasher · · Score: 3, Insightful
    What about MTV? Arn't they telling people what music to like?

    No? What? What's "reality TV" got to do with music television? Nothing?... =V

  10. is this about money? by hackstraw · · Score: 5, Insightful

    From the summary: But since the labels that make up the RIAA are not getting the cash they desire through sales of CDs, and since Internet and satellite broadcasters are forced to cough up cash to their racket.

    I mean seriously. Are these people hungry? Are they homeless? Are they unable to pay their bills? Is their mansion really too small?

    I ran into a former owner of a CD store in a college town a few years ago, and she said that she had to close down because CDs were not selling, so she sold the business, and started another one. She said explicitly that downloads hurt her bottom line, but oh well, times change, and she had to change with the times.

    I mean, how many steam engine engineers are trying to sue these new fangled gasoline, oil, diesel, electric, fuel cell, etc engineers? Or their customers, or their kids, or dead people?

    To me, this is some kind of psychological or socioligical problem that is not properly addressed as such, and the bottom line is that _everybody_ is losing because of it. The real problem is that the government is an accessory to their psychological/sociological problems, because I guess they have the same issues.

    Why isn't the government or anybody concerned about real issues like national debt, health care (oxymoron) reform, energy costs, housing costs, and the stuff that actually affects real people that are real problems. I mean, if nobody bought a 1970s technology like a CD is ever again, would it really be a big deal?

    Is this kind of sociopathy just "normal" when a society is collapsing on itself? Does anybody know what the real issues are here? This is a control/powertrip thing that makes no sense.

  11. New Rules Charge Free Music Too! by twitter · · Score: 4, Insightful

    You won't be able to give your music away in the future. Giving the MAFIAA a new revenue stream only gives them more money to do more harm. The only place to stop them is at the voting booth.

    --

    Friends don't help friends install M$ junk.

  12. Re:Give them what they want! by hal2814 · · Score: 5, Insightful

    You get 8 songs?! I just get DJs who think they're a lot more amusing than they really are and commercials. I'd love to have a radio station that actually played music.

  13. Indirect Payola by sam_handelman · · Score: 4, Insightful

    My guess would be that the RIAA is actually trying to *control* what radio stations play, since that annoying "law enforcement" stuff is getting in the way of payola.

      A major record label can create a list of songs they want played, and offer special royalty-free licenses to broadcast them as a promotion. Independent artists, bands that the RIAA's members just doesn't feel like promoting for whatever commercial reason, etc., won't have the beureucratic infrastructure to *offer* such an arrangement, even if they wished to do so.

      And, of course, if they don't like particular *stations*, for whatever reason, they can refuse to cut deals with them.

      It's the same story as with internet radio - it's all about control.

    --
    The good and new comes from no quarter where it is looked for, and is always something different from what is expected.
  14. Re:Absolutely! Strong support! by walt-sjc · · Score: 5, Insightful

    Oh this has nothing to do with music sales and traditional broadcast radio. This is still about internet "radio".

    Internet "radio" is going back to congress asking to be treated like a real radio station and get back to a zero royalty rate. The RIAA wants to head this off and say that real radio needs to pay too. It won't work, but they are going to give it a go...

  15. Look at the dates on your sources by raddan · · Score: 3, Insightful

    Have you looked at the date on that link? 1940. Good job with the karma-whoring, buddy. You might also want plagarizing an article that actually uses dated language.

    For the record, BMI was not founded last fall. It's been around since 1939, which is an eternity in radio. ASCAP currently claims to have 275,000 members! In fact, being a member of ASCAP or BMI is virtually a requirement if you are a professional musician, as is being a member of a professional union.

    But I'd like to also point out, having worked in radio, that ASCAP and BMI fees can be huge for small stations. The radio station I belonged to was owned by a university, and as a result, the university was able to negotiate a blanket contract for all peformances, radio stations, and jukeboxes operated on the campus (excluding the big performance venue, which was actually subcontracted to an outside vendor). We could have paid this fee ourselves, but it would have been a huge chunk of our operating costs.

    This is greed, plain and simple. The reason why the RIAA wants a cut is because ASCAP and BMI (and SESAC, if you count Europe) fees do not go back to the labels, unless the label owns the copyright on the score (contrasted with owning the copyright on the recording). ASCAP and BMI fees are generally regarded as a good thing, because this is money that artists actually see. When a radio station plays a Nirvana cover of a Meat Puppets tune, the Meat Puppets get the dough. This is a good thing for small artists.

    But there is a downside: ASCAP and BMI reporting is, at best, wildly inaccurate. "Charting" happens infrequently, and relies on stations actually taking the time to report this information correctly. Often it is not. I've heard rumors that SoundScan also has a service that scans the airwaves using a detection heuristic, but I can't find any information about that service, so maybe it was just speculation on the part of one of my coworkers.

    Anyway, labels send radio stations boxes and boxes of free music. We're supposed to pay them now for playing their crap? I thought that's what all the coke and blowjobs were for ;^)

  16. Payola by *weasel · · Score: 4, Insightful


    The RIAA already pays the radio stations to tell people what to like. They have all but admitted to manipulating playlists via bribes because they acknowledge that radio play == sales. So I'm not entirely sure how they are now going to argue that radio play is suddenly detrimental. Particularly not when they're still actively engaged in it. (though now via a corporate shell-game to side-step the FCC)

    My guess, is that the RIAAs is trying to put an end to payola. If the stations legally 'owe' the RIAA money for broadcasting, then they can negotiate airplay without having to write checks. They'll just grant the broadcasters performance rights 'coupons' for certain artists/tracks. Nothing really changes, the labels cut down some of the cost-of-doing business.

    --
    // "Can't clowns and pirates just -try- to get along?"
    1. Re:Payola by MrMarket · · Score: 4, Insightful

      So I wonder if its really worth it for the RIAA?
      It gives the labels a payola workaround.

      PROGRAM MANAGER: We really want to give this awesome song some airplay, but it costs too much; can you give us a break on the air-time fee?

      LABEL: Sure, but you'll have to play this list of 10 crappy songs for every time you play awesome song.
  17. Re:Absolutely! Strong support! by Frosty+Piss · · Score: 4, Insightful

    This would drive radio stations to playing non-RIAA music...

    No, no it wouldn't. Don't fool yourself. People who listen to radio, for the most part listen to music the RIAA controls because they like the music. That's why people pirate the music the RIAA controls. Clear Channel exists because there are lots of people that like its product. Sad? Perhaps, but no less true.

    --
    If you want news from today, you have to come back tomorrow.
  18. So Let's Not Listen To Commercial Music by airship · · Score: 4, Insightful

    Commercial music was once one of the great joys of my life. I loved mainstream rock'n'roll, high-profile jazz artists, famous classical artists; in fact, I loved just about everything except country. I spent a lot of money on vinyl, then tape, then CDs, often re-buying the same music when a new format came along. You wouldn't believe how much I've spent over the years.

    I loved Napster and Kazaa when they came along because they allowed me to sample a lot of music I wouldn't have heard otherwise. When I found something I liked, I'd go out and buy a CD. You know, to 'support the band'. Only it turns out the bands didn't get much (if any) of the money, anyway; it went to the record companies and stopped there. Didn't matter, because the RIAA shut the download sites down. No more music sampling for me.

    Then the RIAA went on a rampage and started dragging grannies and gradeschoolers into court. That's when I stopped buying music. I just quit completely. I haven't bought a new CD in over four years.

    I began listening to Internet-streamed radio and loved it. Then the RIAA began trying to shut that down. Now they're going after commercial radio.

    Well, screw them. I'm done. No more commercial, big-record-company music for me. The RIAA can kiss my shiny metal ass.

    In the process of listening to streaming music, I've discovered some great independent music. I don't need the craptactular garbage the record companies dish out anymore. Especially not if they're going to try to fine me or send me to jail if I don't listen to it on their terms.

    Screw them. I hope they all starve, and their children, too.

    --
    Serving your airship needs since 1995.
  19. Proof that musicians are deluded by seanonymous · · Score: 5, Insightful

    "Mary Wilson, who with Diana Ross and Florence Ballard formed the original Supremes, said the exemption was unfair and forced older musicians to continue touring to pay their bills."

    Oh no! You mean those poor musicians have to keep working, just like the rest of us!? What is this world coming to!?

    Does an older assembly line worker at Ford continue to get paid every time someone drives a classic Mustang? Does an Amish quilt maker get a nickel every time someone gets cold and covers up? Of course not! Then what makes musicians so special?

    Idiots. Get back to work!

  20. Re:Give them what they want! by SmittyTheBold · · Score: 3, Insightful

    ...and both feature breasts prominently.

    --
    ± 29 dB