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RIAA and Net Radio Broadcasters Reach Agreement

Posted by samzenpus on from the pay-up dept.

An anonymous reader writes "The RIAA and internet web broadcasters have reached a royalty agreement. Instead of facing massive increases per song played, they will be generally charged 10.5% of their yearly revenue."

10 of 284 comments (clear)

  1. This is unheard of, but... by dada21 · · Score: 5, Insightful

    ...it's also a sign that the RIAA knows it is outdated and is only grasping at the few straws remaining.

    If you're thinking of starting a business venture, there are two words for you: supply and demand.

    No amount of laws or regulations can overcome supply and demand in the long run. The RIAA relied on preferential laws and regulations to maintain their control over distribution. Recorded music has a near-infinite supply in terms of distribution online. Hence the price of it should fall to nearly zero (yes, some people who see value in compensating the artist will never believe the price should be zero).

    The RIAA is screwed, no matter how you look at it. Most monopolistic corporation unions who rely on legislation and not on supply and demand are just as screwed.

    1. Re:This is unheard of, but... by WTF+Chuck · · Score: 5, Insightful

      100% of nothing is nothing. If you are going to charge your distributors more for your "product" than your they will make selling that "product", then you get the full 100% of nothing. On the other hand, if you see that they will walk away and find some other line of work if you insist on the full 100%, then you know it's time to come to somewhat more reasonable prices.

      --
      Note - Liberal use of <sarcasm> tags may or may not need to be applied.
    2. Re:This is unheard of, but... by vux984 · · Score: 5, Insightful

      That's fine if you are Gordon Lightfoot and still have the stamina and the talent to fill the 3000+ seat Shea's Buffalo at age 69.

      A tile setter won't have the stamina at age 69 either. That trade is deservedly considered to be 'back breaking'. Do the users of bathrooms he tiled in his prime pay him a royalty?

      Maybe not so fine if your burn out from the rigors of a full concert tour at a much younger age.

      Maybe they'll need to find new jobs when they age? Its how the rest of society copes with the fact that they can't do the jobs they did when they were younger.

      --- or you know that you are never in your professional career going to see a booking at a first, second or even third tier concert venue.

      And?

      Most models passing through expensive modelling schools never even earn enough at modelling jobs to pay back what it cost to go through 'school' and keep their portfolio maintained. The VAST majority never do better than a department store catalog job. And as they age and become less marketable... long before that, in most cases, they find another job.

      So most musicians won't be successful enough to live off concert revenue, so what? They can get jobs like everyone else, and can join the ranks of: most poets, most authors, most fencers, most basketball players, most playwrights, most actors, most open source contributors...

  2. Re:Supply and demand, indeed by akirapill · · Score: 5, Insightful

    It's an expensive habit, most of us are just trying to break even.

  3. Only for on-demand services by Anonymous Coward · · Score: 5, Insightful

    Sorry for posting as AC but I just would like to point out that this agreement is only for On-Demand services and not pre-programmed web radio services (which most web radio stations are).

    So for most stations this does not change anything and the insane royalty rates that threatens the whole web radio industry is still very much in place.

  4. Re:10.5% of the yearly revenue? by Apple+Acolyte · · Score: 5, Insightful

    I had to do a double take when I read 10.5% of yearly revenue. 10.5% of profits sounds excessive, but 10.5% off the top is outrageous.

    --
    Part of the hardcore faithful who believed in Apple long before it was cool again to do so
  5. RIAA or MAFIA? by TheCybernator · · Score: 5, Insightful

    Seriously. RIAA is acting like a mafia. Asking for a flat cut as protection money. Civilized extortion.

    --
    Eclipse PDE and Me
  6. Re:Supply and demand, indeed by BlueStrat · · Score: 5, Insightful

    It's an expensive habit,...

    Yeah, I think that statement should be in the running for some sort of award for "Most massive understatement in a /. post".

    most of us are just trying to break even.

    Anything that's music-related...instruments, amps, etc...is extremely pricey. A decent brand-name USA-made professional-quality electric guitar will set you back $2,000-$3,000, and the same with an amp (thinking of an example of a new Gibson Les Paul and a 50 watt Marshall half-stack). That's the best part of $10,000 for just *ONE* guitar players' personal rig in an average good-quality bar/club cover band!!

    That's not counting effects pedals and/or rackmount effects/processors, cabling, strings, picks, stands, microphones ($100-$150 each), PA gear, and the maintenance costs of keeping all the equipment (which can be quirky) and the instruments in shape. Heck, just a new set of tubes for a guitar amp can easily run $200-$300! That's just for starters. Then there's transportation and storage costs for all the equipment, and personal transportation and lodging plus food costs, and even laundry for those on the road, on top of that for all the band members.

    Most average bar/club bands don't come anywhere near to paying even ongoing expenses, never mind also recovering their investment in the equipment and instruments when you factor in all the costs. Most bars only pay a band $350-$500, many even less. Many times a band will get stiffed altogether by shady bar owners. These guys do what they do because they love playing and entertaining. Please keep this in mind the next time you go to a bar or club and see a tip jar at the edge of the stage.

    Cheers!

    Strat

    --
    Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
  7. Re:Supply and demand, indeed by fprintf · · Score: 5, Insightful

    The thing is, hobbies are expensive. The fact that you have an opportunity to make some money on it is just an extra bonus. Think the guy who is into sailing moans about the $10-$200K he has in gear, and how "the man" (e.g. the Coast Guard) makes all these laws conspiring against him earning some income off his investment? Or how about the airplane pilot, with $200,000 sunk into his private plane that cannot take private passengers for hire?

    What makes musicians so special and whiney? It is a hobby, albeit an expensive one, that if you are really really good at, you can get paid to do. Same with pilots. Same with boat captains. No one owes anyone an income from their hobby.

    --
    This post brought to you by your friendly neighborhood MBA.
  8. 10.5% sounds like a protection racket to me by DragonTHC · · Score: 5, Insightful

    How much of that will go to artists? apparently none since no one is keeping track of the artists whose music is played.

    Nope, this is more payola. Fat Tony wants 10.5% of the take for your continued ability to play music without issue.

    Notice, it says 10.5% of the yearly revenue. Not yearly profit.

    Yep, this is bad for artists and bad for consumers and bad for everyone except the RIAAfia

    --
    They're using their grammar skills there.