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Radio Royalty Legislation Described As 'RIAA Bailout'
An anonymous reader tips an article at TechDirt about draft legislation from Representative Jerry Nadler (D-NY) that would dramatically increase the music royalty fees for cable and satellite radio to put them at the same level as internet radio streaming. TechDirt calls this the 'RIAA Bailout Act of 2012' and says the RIAA has been pursuing similar legislation to increase royalty rates for terrestrial radio as well.
"As it stands now, the rates are so damaging that Pandora — the top player in the space — has made it clear it may never be profitable. Yes, never. Nadler's bill would effectively make sure that no one else in that market would be profitable either. The end result? Many of these services don't exist or never get started. That would actually mean fewer services, fewer listeners and lower royalties. It's almost as if he has no concept of price elasticity. Lower prices can create higher total income. Also, the idea that any particular Congressional Rep. should be (effectively) determining what the "fair" price is for anything is, well, horrifying. "
Seems they (the RIAA) would rather take nothing, and blame it on piracy, than take something!
"For every expert, there is an equal and opposite expert"
Nadler's bill would effectively make sure that no one else in that market would be profitable either. The end result? Many of these services don't exist or never get started.
I think that's quite the desired effect by the RIAA, to repress technologies and services. This is a deep rooted mentality that has been "proven" in their eyes by cassette tapes (remember when people were duping records and recording radio plays and that was destroying everything?) and Napster and Bittorrent -- all new technologies that they attribute with the decline of their iron grip on their "consumers." Internet radio is just the latest demon and, of course, if their profits slide it will be the new scapegoat. The article notices this as well:
“Congressman Nadler’s discussion draft would only perpetuate this hypocrisy and worsen an already flawed legislative mistake that is discriminating against new technology and hampering innovation,"
I do slightly object to this statement:
t's almost as if he has no concept of price elasticity. Lower prices can create higher total income.
No, I disagree with you there. I think services like Amazon and iTunes have shown them this and they reject that concept anyway. They built up their empires by reducing the diversity of music and creating a single song that everyone had to have. Radio jockeys play it 24/7, the Billboard Top 100 tells you what it is and it's basically slammed down your throat everywhere. This strategy payed off very well for them for quite some time. They wanted to reduce the amount of music you wanted or desired and price it out at $18 for the album. Everybody had to buy it and that's why you can pick up New Kids on the Block or Brittany Spears albums at your local thrift store for pennies now. And that's the best way the RIAA could have it since everyone got sick of that music, burned out on it and had to have the next $18 album that they were told to buy. Since everyone had to buy it that was $18 * tons of money.
Now new technology comes along and offers a more diverse music repertoire and the possibility of buying that single song and *GASP* radio jockeys that aren't yoked into playing the same goddamn song over and over again. And this frightens the music executives. They know about price elasticity, they just don't want the profits they should be making and instead wish to return to a simpler time when they told you what to pay and everyone paid that because there was no other option and society was shoving it down their throats. Lower prices CAN create higher profits but the way the RIAA has been running the show means it probably will not.
My work here is dung.
Can somebody explain why the government is involved in this at all? Why are royalty fees simply negotiated between the licensor and licensee?
This is not like utilities, food, or health care where we need to prevent an oligarchy from profiteering by withholding necessities. If you do not agree to the fees, do not license the content.
Go green: turn off your refrigerator.
It would be fascinating if someone were to start an IndieGoGo fundraiser to "Buy a Senator"
Buy a senator and have him introduce a bill - something good, like forcing the cablecos to share their lines with competitors at cost, or legalizing marijuana for adults.
How much money would it take? $5 million? $10M, $20M before a senator publicly announces, "Okay, I'll do it. What law do you want introduced and give the cash to my campaign manager so he can get to work on spinning this"
XKCD:Xeric Knowledge Comically Dispen
The entitlement mentality of the RIAA is astounding.
Radio has for decades played their songs as advertising. In the past record companies have gotten in trouble for paying radio stations to play certain music.
Now they want to have their cake and eat it too.
There is NO DIFFERENCE between the radio playing the song and a streaming service playing the song. It is still advertising for the record company. I have bought many songs after hearing them on a streaming service. I also already own many songs that play on streaming services I listen to. The record company being paid per play by streaming services is obnoxious crap.
I always smile when I think of how badly Apple and Amazon screwed over the record companies in providing access to digital versions of their music. They had the ability to build their own stores and they were idiotic enough to fail and it the process hand over billions to companies that laid the digital groundwork for them. True, record companies make money from Amazon and Apple, but Amazon and Apple make money off the record companies too _and_ they completely control the ecosystem.
I'm anxiously waiting for Apple, Amazon, and Google to start getting into the business of distributing artists songs just like they do for app developers. They could also use their promotional capabilities to drive sales for these artists. Sales where they make more money than selling what the record companies give them. When this happens the writing will be on the wall and the record companies will finally die the death they so deserve.
And it's so common that the example that immediately popped into your brain happened 40 years ago.
W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.