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RIAA and Net Radio Broadcasters Reach Agreement

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."

9 of 284 comments (clear)

  1. 10.5% of the yearly revenue? by Noryungi · · Score: 4, Interesting

    What about the radios that don't make any profit?

    I am specifically thinking of SOMA FM and WCPE. I know that WCPE is a non-profit, for instance, and they are two of the best radios I know.

    Are these exempted or not? Does anyone know?

    --
    The right to offend is far more important than the right not to be offended. (Rowan Atkinson)
  2. Remember to pay the tithe you teabaggers by $RANDOMLUSER · · Score: 4, Interesting

    Perhaps if there were some mention of what broadcast radio stations were paying for their tithe or per-song charges we could make a reasonable comparison. Somehow I doubt that all-talk/mostly-talk broadcast stations are paying 10% of revenues in tribute.

    --
    No folly is more costly than the folly of intolerant idealism. - Winston Churchill
  3. Turn their own tactics on to them... by Anonymous Coward · · Score: 5, Interesting

    We've all heard about RIAA tricks to scam the artists out of their fair share. Like taking a percentage of revenues for 'breakage' based on the rates of vinyl records breaking in shipping even though CDs are much more sturdy and MP3 downloads are impervious.

    So I suggest the radio stations change their business models to run revenue-free. Like becoming an ancilliary service that does not generate revenue under normal conditions - like you can pay a fee so outrageous for the radio service that no one in their right mind will pay it, or you can get it 'free' as part of membership (paid or advertising-supported, or some other scheme) with some other web-site or service provider. Let the free-radio and the revenue-generating service be subsidiaries of the same parent company and you are all set.

    Of course I am writing this without actually reading the details of the contracts - those MAFIAA lawyers are really good at putting together contracts that fuck the other guy in novel and unexpected ways, so anybody trying to fuck them back needs to pay real close attention to the details.

  4. About time by Auckerman · · Score: 5, Interesting

    Profit motive is a fascinating thing. It's not in the RIAA's best interest for web radio stations to go offline, because they generate no money from web radio that way. Whatever they charge is going to be the highest possible without alienating their customer base, which is the web broadcasters. It took them long enough to finally admit that their pricing was extraordinary to say the least.

    I do find it fascinating that the major labels, via "Independent promotors" actually pay radio stations to broadcast specific songs, whereas they do no such thing for web radio services. I would think that something like the web radio in iTunes would be a perfect target for this.

    --

    Burn Hollywood Burn
  5. I'm not sure I understand... by calmofthestorm · · Score: 4, Interesting

    I read TFA and something is seeming strange to me.

    You pay 10.5% of all revenue to the MAFIAA. Does that mean that they're waiving the current royalties? Or is this tax in addition to the old royalty rate?

    If this is all they pay does that mean I can:

    * Stream RIAA music all I want if I don't make any money?
    * Broadcast it DRM free?
    * Get from the RIAA their music to play?

    Clearly I'm missing something big somewhere, 'cause there's no way the RIAA would allow that chain of events.

    --
    93rd rule of Slashdot: No matter how obvious my sarcasm is, my comment will be taken seriously by someone.
  6. Re:This is unheard of, but... by CaptainZapp · · Score: 4, Interesting

    For about $5,000 you can buy a complete set of recording equipment - the necessary laptop, software, mics, etc. to go with your instruments.

    I believe that Steve Albini may disagree with you.

    If you don't know who he is, this essay is extremely interesting.

    --
    ich bin der musikant

    mit taschenrechner in der hand

    kraftwerk

  7. Re:Only for on-demand services by Atnevon · · Score: 4, Interesting

    I read about this yesterday on Betanews actually and headed to the source (DiMA to take a closer look). There's actually *even better* news in the agreement for non-interactive services: "Outside the scope of the draft regulations, the parties confirmed that non-interactive, audio-only streaming services do not require reproduction or distribution licenses from copyright owners." Hard to believe, I know, but take a look: http://www.digmedia.org/content/release.cfm?id=7243&content=pr

  8. Re:Supply and demand, indeed by electrictroy · · Score: 4, Interesting

    >>>Listen to music produced today and compare it to what was around up to 15 years ago.

    So 1993 or earlier. The tops hits at that time were New Kids, Vanilla Ice, MC Hammer, Janet Jackson, Mariah Carey, C+C Music Factory, Snap, Black Box, Boyz-II-Men, Will Smith, Salt-N-Pepa, Red Hot Chili Peppers, and so on. It was the middle of the dance music craze where almost all songs were composed around a simplistic beat box, with an occasional love ballad "to break-up the monotony of that hardcore dance that has gotten a little bit out of control".

    Are you really sure your statement, that these artists were "better quality" than what's on the radio today, is accurate?

    I honestly don't see much difference in talent.

    --
    The government is not your daddy. Its purpose is not to raid middle-class neighbors' wallets and give it to you.
  9. There is a good reason for that by Weaselmancer · · Score: 4, Interesting

    The music industry would prefer to be in control these days. Allow me to explain a bit.

    Back In The Day(tm), you had bands with enormous talent. Let's pick Led Zeppelin as an example. Please - no flames or debate on my choice of band. I've picked them for a reason, so bear with me.

    They were pretty revolutionary. Fantastically talented and ahead of their time. It's been almost thirty years and you can still hear them on the radio.

    And the stories on how they behaved were equally legendary. They'd blow into town, rent entire floors of hotels and absolutely trash them. Their post-gig parties were the stuff of legend. Once the dust had settled they'd simply pass it off to their label. "Deal with it." And if anyone complained it was "Fuck you - we're Led Zeppelin. You can't replace us, and you know it."

    So they flaunted that. Most bands of the era did, but they were famous. Their partying habits were closer to acts of nature. I'm sure at the time you if you were a hotel owner you could buy Led Zeppelin insurance. At a premium.

    So understandably, the labels got sick of this. That's why music is the way it is today.

    Look at what's popular. Rap and bands like the one you mentioned. And what do they have in common? More style than talent. Why? Talent is rare. Style can be manufactured. Music stopped becoming something special that only a gifted few could do well, and became a product. Something you could buy in a shrink wrapped box. And replaced just as easily.

    Bands today could not get away with Led Zeppelin-esque excess. Let All Saints try that crap with their label, just once. "Fuck you, we're All Saints. Just try and replace us." Every single person in the band will be working in a 7-11 the next Monday, with a bill for the damages.

    This is beneficial to the labels, of course. But the problem is that the special spark that makes truly great music is systematically removed from the system in an attempt to make everything easily replaceable. Nobody stands out anymore. They can't, by definition. Anyone irreplaceable is too much potential trouble. They want mediocrity. Polish it up a little bit so it sells, and receive maximum benefit with minimum hassle.

    The downside is that you will never hear truly great and innovative music ever again. At least from the big labels, anyways. It would be like being able to buy a really excellent coq au vin at McDonalds. The business model of bulk production and speedy turnaround simply forbids it.

    --
    Weaselmancer
    rediculous.