10 December 2006, 21:18
RIAA petitions for less royalties for artists and more for labels.
Last week in USA RIAA petitioned a panel of federal government copyright judges to change royalty distribution ratio and lower statutory royalty rates so that songwriters would get less and labels would get more.
This road to more equality is paved with good intentions indeed. Last time labels and songwriters negotiated a ratio was 25 years ago. Since then technology and the market have changed considerably. Now labels are loosing money as CD sales decline while songwriter are actually getting more from ringtones and other innovative services.
According to The Hollywood Reporter RIAA's executive vp and general counsel Steven Marks commented that "Mechanical royalties currently are out of whack with historical and international rates…[RIAA] hope[s] the judges will restore the proper balance by reducing the rate and moving to a more flexible percentage rate structure so that record companies can continue to create the sound recordings that drive revenues for music publishers."
Is it that real musicians should get less for their work so that labels can continue to "drive revenues"?
Read more:
RIAA Petitions Judges to Lower Artist Royalties, IGN.com
Labels seek lower royalty rate, The Hollywood Reporter
RIAA Petitions For Lower Songwriter Royalties, Hypebot
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Comments 14
1. by Thomas Jay Wacker, 11 December 2006, 23:49
I think not, big corporations have clever accounting departments to take care of this; they do not need more of the pie as the artist typically gets less than what they should anyway. Of course it’s not up to the corporations to protect the artists, with the internet, its up to the artists to educate themselves on the business side of things, after all this is a business at the end of the day.
If the artist hits it big time, then there are auditing firms that will go after (for a commission) the corporations. Like I said, its all about knowledge, when money is on the table, you have no friends. Not everyone or corporation is like that, but ninety-nine percent are and have shareholders to please.
2. by tixe, 12 December 2006, 00:04
Good... that means bigger underground scene... more artists will come out from underground without labels and labels will die out and only Britneys will be left who wont be able to live without labels ;D
3. by Pussy Licker, 12 December 2006, 02:54
Who gives a fuck! Greedy dumb morons. That way musicians go independent. With today's computer power and 'all in one' music creation tools everybody can produce and publish himself / herself. It is not anymore underground it is THE real dope!
4. by DiViDeD, 12 December 2006, 03:15
The record labels need to realise that no industry lasts forever. It's like blacksmiths calling for legislation against cars because more cars means less horses for them to shoe.
Record labels had a stranglehold on musicians for too long. You want to use a studio? press a record? get airplay? You'll need *us* to do all tha for you. Sign here. We'll take 80% of your earnings because without us you can't be a star.
Now anyone can produce high quality music recordings in their own home, and distribute and sell their music online direct to the consumer at a far lower cost and still make more money. What the fuck do we need record labels for anymore?
And the RIAA bleats about 'downloading is stealing bread from the mouths of starving songwriters' is shown up as the BS it is by their own efforts to reduce artist royalties even further.
The record labels are dying and they'll use every trick in the book before they're finally dragged off to the knackers yard kicking and screaming.
And bloody good riddance to them.
5. by Michael, 12 December 2006, 05:36
What we need is an independent group from the internet that gets radio time. A beginning to the end...
6. by Jimbolo, 13 December 2006, 00:53
How long is ordering going to be down for?
7. by Ramiro Teodosio, 13 December 2006, 08:13
I can't wait for the day that all musicians are idie artists. I won't cry a single tear for the Recording Industry -- even if they did good when they were younger.
RIAA: It's all about the mu$ic.
8. by Todd in US, 15 December 2006, 00:12
This has been the 'big business' approach in all facets of life in the US, pay less - and demand more, from the work force.
This proves to me that the RIAA feel recorded music is the intellectual property of the RIAA.
9. by (Anonymous), 16 December 2006, 00:11
I gotta give Kudos to you guys at Allofmp3. I know you've been dealing with a lot of shit lately and these blogs are the perfect way to show you mean business in counteracting the ridiculous right-wing and business-driven model that everyone believes is absolute.
10. by Brian, 17 December 2006, 15:13
I too am looking forward to a day where there is no RIAA. I also believe that the Allofmp3 model is the perfect business model for online music. But I have to add that this last guy (Anonymous), should leave out the political statements. He obviously has no idea what he is talking about.
11. by Chris Niels, 19 December 2006, 03:58
Well, the time where one can freeload off the creative minds of artists seems to come to an end. Never-the-less, the record companies have been a platform that has found and "created" many of our most dear artist! Right now we're in the situation that we value artists by the size of their promo budget; I sincerely hope that an artist well-knownness should at least have some connection to whether he/she done something innovative and worthy of some reflection! In the end who really gives a fuck about Paris Hilton and all the other fuckers who believe in nothing but themselves!
12. by Author from Italy, 21 December 2006, 00:09
Scandalous.
They got rich on writers shoulders for year..
Going on this way, labels will be able to publish only music from Reason.. if someone will be interested in buying it, of course..
13. by lordbaal, 2 January 2007, 03:11
"What we need is an independent group from the internet that gets radio time. A beginning to the end..."
Does it really need to be radio? Why not continue to push internet radio. It is the future, anyway. TV and movie companies are already gearing up for their internet revolution, radio is already on its way.
But at the same time, radio is portable in a way that TV's, movies, and the internet are not. What we will need soon is a portable device for playing internet radio. Perhaps by satellite like XM or Sirius?
14. by lsdeep2000, 7 February 2007, 04:29
well, i am in tears for the labels! back in the 80's i had my first cd released by a label. i got a low one time payment and the "royal" amount of about 35 cents per sold copy (considering the retail price of $11 i really made the major amount of money there)! anyway - i still drive a 16yrs old volvo, the label manager is possibly in a 2007 model of the porsche he drove at the time LOL. yep i can see that they need a bigger share of the money, things arent looking good.
i learned my lesson and released anything else later on in my own distribution - the results out of this self marketing in clubs i played added to substantially more money than anything i ever saw of this thieves :)