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Music Media The Almighty Buck

RIAA Seeks Royalties From Radio 555

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."
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RIAA Seeks Royalties From Radio

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  • by tehwebguy ( 860335 ) on Tuesday May 22, 2007 @08:04AM (#19219311) Homepage
    I truly hope they get what they want, it seems like the only thing that could possibly take down Clear Channel.

    This would basically ruin both CC and the RIAA. Without the radio telling the masses what to like, CD sales are doomed.
  • Excellent! (Score:5, Interesting)

    by Algorithmnast ( 1105517 ) on Tuesday May 22, 2007 @08:06AM (#19219327)
    One of 2 things will probably happen:

        1) RIAA offends the courts by trying to reverse Congress and fails, and loses some steam and (more) public credibility (with those who think they have any).

        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.

    I'm failing to see a down side....
  • by irexe ( 567524 ) on Tuesday May 22, 2007 @08:06AM (#19219331)
    I'd like to see all radio stations play only independent music for one day. See how the RIAA likes that..
  • by ZiakII ( 829432 ) on Tuesday May 22, 2007 @08:07AM (#19219343)
    I'm just hoping maybe.... the judges will know what the hell radio is and realize and understand exactly what the RIAA is doing and not get confused/persuaded other ways by some techno-speak in the past.
  • by aussie_a ( 778472 ) on Tuesday May 22, 2007 @08:08AM (#19219357) Journal
    Actually the radio will be telling people who to like. It will be people they can afford (most likely free people in many cases). Sounds like a win for me if the RIAA gets what they want.
  • by dbolger ( 161340 ) on Tuesday May 22, 2007 @08:09AM (#19219359) Homepage
    ...when reality and The Onion collide: http://www.theonion.com/content/node/27696 [theonion.com]
  • by RenegadeTempest ( 696396 ) on Tuesday May 22, 2007 @08:09AM (#19219361)

    This is great news. There are only like 2 big radio conglomerates out there. They typically replay the same crap that the labels spoon feed them over and over again. Now, let's say they have to PAY to play that crap. Wouldn't it make sense to maybe play local stuff that doesn't cost a dime? Maybe it makes sense to play those albums that are not covered by the RIAA?

    The best part is that if this is instituted it must be instituted across the board. They can't give radio stations breaks on a specific song over another. If they do, then this is payola. You can't pay radio stations to play your song. A discount on royalties is the same as paying them. Maybe we might hear some variety on the radio.

    Again, another strategy not thought out to the logical conclusion.

  • Re:Pipe Dream (Score:5, Interesting)

    by Andy_R ( 114137 ) on Tuesday May 22, 2007 @08:11AM (#19219389) Homepage Journal
    Well we've always had this here in Britain, and it seems to work. If the RIAA do manage to pass this in the US, I think their main problem will be explaining to artists why they don't get any of the new revenue.
  • by starX ( 306011 ) on Tuesday May 22, 2007 @08:15AM (#19219441) Homepage
    Is that Clear Channel has lots of expensive lawyers, too. Also, even if this does work, it would be like taking a sawed off shotgun to their one remaining foot. When are these guys going to figure out that their business model just doesn't work anymore and will likely never work again?
  • by Anonymous Coward on Tuesday May 22, 2007 @08:18AM (#19219453)
    This would drive radio stations to playing non-RIAA music, accelerating the RIAA's demise. There's nothing that could be better for the anti-RIAA forces than having them expensively bite the hand that feeds them new listeners.

    I don't know why they're committing suicide this way, but I'll gladly set up the chair and help tie the knot.
  • by empaler ( 130732 ) on Tuesday May 22, 2007 @08:19AM (#19219469) Journal

    Actually the radio will be telling people who to like. It will be people they can afford (most likely free people in many cases). Sounds like a win for me if the RIAA gets what they want.
    Actually, that could just imply that the ones who make it affordable for radio stations make it less affordable to the consumer. That gives more airtime and more profit...
  • Idiots (Score:4, Interesting)

    by aysa ( 452184 ) on Tuesday May 22, 2007 @08:21AM (#19219497)
    This will be the last nail in their coffins. I do not need to explain why, it is abvious for any person with a little sence.
    Of course, RIAA has bacome senceless long ago and its own worse enemy.

    Like the old fable of the scorpion and the frog.

    A scorpion asks a frog for help crossing a river. Intimidated by the scorpion's prominent stinger, the frog demurs.
    ``Don't be scared,'' the scorpion says. ``If something happens to you, I'll drown.'' Moved by this logic, the frog puts the scorpion on his back and wades into the river. Half way across, the scorpion stings the frog.

    The dying frog croaks, ``How could you -- you know that you'll drown?''
    ``It's my nature,'' gasps the sinking scorpion.

    Sting the radios, RIAA, and sink alone. They will start promoting indie labels.
  • by zuki ( 845560 ) on Tuesday May 22, 2007 @08:30AM (#19219587) Journal
    ....and although I am usually in a particularly bad disposition against most anything the RIAA has been doing recently.

    I think that at the very least there is something to be said for this. If anything, the radio stations are racking up
    income hand over fist from all of those insipid commercials we are forced to listen to, and it would only seem fair
    that besides the songwriters and publishers (who are justly being compensated), the owners of the sound recordings
    also get a piece of that income, which wouldn't affect talk radio, news and sports stations, but mostly for those stations
    who have a 'music format', said music being the main reason they are able to remain in business.

    This exemption business was something that was passed more than a half-century ago, originally allowed to support the massive investment
    buildout in infrastructure which radio had to go through, long since recouped, and the fact that it still stands today shows the colossal power
    of the lobby behind the stations/conglomerates such as Clear Channel.

    This makes the RIAA's position that Internet broadcasters have to pay a bit more sensible, although totally irrelevant to the reality of the Internet.
    Being that records are not selling that much anymore, and that people still listen to terrestrial radio quite a bit, it would make sense that some
    of the income stream commercial radio is deriving from music should be used to give people an incentive to create more of the same material
    the stations are using to earn income with.

    I really don't see what's far-fetched or ludicrous about this; there should however be exemptions for not-for-profit, college radios, and low-power transmitters.

    Z.
  • Re:Excellent! (Score:3, Interesting)

    by Mr2001 ( 90979 ) on Tuesday May 22, 2007 @08:31AM (#19219603) Homepage Journal

    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.
    We already have a bland "selection" of mostly-national radio. The stations are nominally "local", but by some miraculous coincidence, they all play the same music and the DJs all sound the same. I pay $12.95 a month so I don't have to listen to our "diverse" FM radio.
  • Diverse? (Score:1, Interesting)

    by Anonymous Coward on Tuesday May 22, 2007 @08:33AM (#19219617)
    Amarican radio is not particularly better than European radio - both are more of the same and still more of the same. Which is probably because that sums up American and European music pretty well. Go listen to some Japanese music.
  • Wonderful! (Score:5, Interesting)

    by evilviper ( 135110 ) on Tuesday May 22, 2007 @08:35AM (#19219635) Journal
    I haven't heard a better idea in a long time.

    RIAA has to fight it out with Clear Channel, which definitely has the resources to fight them.

    This will finally get public attention on copyright, royalties, and how aggressively the RIAA has been acting for the past several years. Most people don't know much about internet radio, but they know plenty about the noise box that keeps them entertained as they drive to and from work.

    Then, if the RIAA are successful, they'll be making unsigned and non-RIAA artists who will happily sign royalty-free contracts, far more attractive to radio stations. More radio play, means more sales, which means real competition with RIAA.

    I see a huge upside, and very little downside, for the public.
  • Re:Excellent! (Score:3, Interesting)

    by the_humeister ( 922869 ) on Tuesday May 22, 2007 @08:36AM (#19219657)

    What this WILL mean is that you'll end up with the bland "selection" of national radio that other Western countries have.


    We already have that. Practically all rock, adult contemporary, etc. stations play the same thing...
  • by ribuck ( 943217 ) on Tuesday May 22, 2007 @08:36AM (#19219665)
    Unfortunately, it won't backfire. The same thing happened in 1969/1970 in Australia. The main radio stations stopped playing the big-label records that they would have had to start paying for. Instead, they played music from the independent labels, who were happy to not demand a royalty.

    It lasted about six weeks before the radio stations capitulated. Their listeners wanted music from the big names.
  • by argStyopa ( 232550 ) on Tuesday May 22, 2007 @08:36AM (#19219669) Journal
    It's sad that after so many predictions by the RIAA of the demise of commercial radio...

    The recordable tape cassette? People will just record what they want and never listen, it will be the END OF RADIO!
    DAT? People will just record what they want and never listen, it will be the END OF RADIO!
    Burnable CDs? People will just record what they want and never listen, it will be the END OF RADIO!
    MP3s over the internet? People will just record what they want and never listen, it will be the END OF RADIO!
    ...the ones ACTUALLY killing radio are the RIAA themselves. Sad, predictable, and ironic all at once.
  • by simong ( 32944 ) on Tuesday May 22, 2007 @08:44AM (#19219733) Homepage
    which is a concept that the RIAA seems not to understand. Radio and TV airplay are what drives sales and in turn what attracts listeners to listen to the radio. If radio and TV thought for a while and bypassed the RIAA, music radio would probably survive, but for how long would the RIAA survive without this free promotion? Let them cut off their nose and see how many copies the new Madonna LP sells without the radio.
  • by dotfile ( 536191 ) on Tuesday May 22, 2007 @08:45AM (#19219741)
    You'd love to think that, but it's not what would happen. Let's follow the money for a moment...

    Clear Channel and the other huge companies could and would pay without even flinching, and just jack up their ad rates to cover the increased costs (and then some, since they can now blame RIAA for pretty much ANY amount of rate increase). Big Media wins, makes more money, gets bigger.

    Advertisers now have Big Media sucking up a larger chunk of their advertising budgets, so they have to make cuts somewhere. Since the smaller, independent stations (are there any left?) have to pay RIAA too, their costs go up. With smaller audience shares, they are now even less cost effective than before. Advertisers pull ads from small stations to pay for the ads on big stations, small stations are now in an even bigger hurt than before.

    Because the FCC has been spreading its legs for media companies for so long - and Congress is too clueless to notice or care -- Big Media is now able to suck up even more smaller stations as their financial position becomes untenable. Big Media wins again, makes even MORE money, gets even bigger. Talk radio and NPR survive as the only alternative to what Clear Channel, Journal Broadcast and the other handful of winners want you to hear.

    This would be a huge long term win for the handful of huge media companies that now control most of the market anyway. Unfortunately, I suspect it would be a Pyrrhic vistory. They've alreay driven millions to satellite radio, and this would probably drive nails into terrestrial broadcast radio's coffin at an even faster rate.

    Once the sattelite channels are devoting as much time to advertising as they are to music, we're right back to where we started - buy now you're PAYING to listen to it, which works out far better for the media companies. You're not naieve enough to think THAT won't happen, are you?

  • by Maximum Prophet ( 716608 ) on Tuesday May 22, 2007 @08:49AM (#19219773)
    If the excemption is passed, *all* radio stations will be more like college radio. The record companies will have to give the little know stuff away just to get air time. This could concievably level the playing field so that small bands could actually compete with "Madonna".

    Radio Stations will adapt, and only play the expensive stuff during peak times when it will get them the most listens for their advertisers. During most of the day, and the evening hours they'll be able to play the free stuff from independent artists. It might even mean that stations will have to hire an actual program director to seek out local artists that appeal to locals.

    Like any change, some stations won't be able to adapt and will wither and die, but there will be a bunch of kids with a vision to take their place. Imagine a station that only played music licensed by a creative commons license that allowed unlimited radio play.
  • The Uk (Score:2, Interesting)

    by Virgil Tibbs ( 999791 ) on Tuesday May 22, 2007 @09:01AM (#19219875) Homepage
    I would say what you have is amazing in the US - practically anyone can set up a radio station...
    It costs so much here to operate a radio staation that they are all shite because they all cover 'mainstream' things...
    sure the BBC is good in many respects, I'm all for the BBC, but unless you plan on listing to stations devoted to:

    8 songs of pop
    #(radio 1)
    anything from 30's to now which includes just about everything
    #(radio 2)
    classical music
    #(radio 3)
    news, radio plays, and unfunny radio comedy
    #(radio 4)
    sport
    #(radio five [live])
    -
    on DAB digital radio and on the internet there is
    There is also 6music (which is alternative / 'indie'[guitar-pop])
    and several others which no-one listens to...

    so what does this mean:
    well think what stations you have in the US?
    country, hiphop, rock, community, that crazy Evangelist who always seems to be there etc
    We don't have any of that.
    there are NO terrestrial community radio stations.
    There are no terrestrial folk music stations

    Compared to you we have nothing

    Now I'm not pointing the blame some-one else can do that.
    But you Americans are LUCKY

    [I'm sticking to last.fm anyway]
  • by ZorbaTHut ( 126196 ) on Tuesday May 22, 2007 @09:06AM (#19219921) Homepage
    Does this remind anyone of how copyright law gets legislated?

    "Hey, you Internet radio people! The normal radio people are paying $$. You should pay $$$$ because it's New and Different and it can be copied all over the place. And now we're getting a law passed for it."
    "Okay, okay, here you go."
    "Hey, normal radio people! Internet radio people are paying $$$$. You guys should be paying $$$$$$, I mean we can't even measure how many people you reach! And now we're getting a law passed for it."
    "Okay, okay, here you go."
    "Hey, Internet radio people! Normal radio people pay $$$$$$, why are you only paying $$$$?"
  • by R2.0 ( 532027 ) on Tuesday May 22, 2007 @09:10AM (#19219967)
    "Not that I support her claim, but none the less ... think about the social security system. In my opinion, I believe it is there for the simple fact that the government is "rewarding" tax payers for so many years of paying taxes. Along with retirement funds, this lets the older generation live (sometimes) comfortably in their later years."

    And thereby perpetuating a misconception. Social Security was conceived as a means of alleviating poverty among the elderly, which was widespread. It is a wealth transfer. Period. It is not a reward, nor an investment. It is taking money from my paycheck (and yours, assuming you are employed), and giving it to someone else.

    As a social program, it has been very successful - poverty among the elderly has been drastically reduced. Fiscally, it is a disaster, as lifespans increase and the working population decreases. Politically, it is a paralytic, causing a lockup whenever politicians even think about changing the system.

    If the performer in question feels that SS and the money she has squirreled away isn't enough for her to live in the lifestyle to which she has become accustomed, she needs to do what everybody else does - keep working. If she didn't put money away? More reason to keep working. No one owes her a comfortable retirement.
  • WFMU (Score:1, Interesting)

    by Anonymous Coward on Tuesday May 22, 2007 @09:13AM (#19220013)
    WFMU in the NY/NJ area plays all kinds of great music and has no commercials. Their DJs are actually amusing, yet they don't talk too much, and you can listen to them online and even listen to archives from the last 7 years or so (though older than two weeks is lower quality real audio).

    http://www.wfmu.org/ [wfmu.org]

  • by Anonymous Coward on Tuesday May 22, 2007 @09:17AM (#19220063)
    http://www.theonion.com/content/node/27696 [theonion.com]

    I bet you someone reported the onion as fact again... everyone just calm down.
  • by lysse ( 516445 ) on Tuesday May 22, 2007 @09:59AM (#19220665)
    The irony being that when her records are played in the UK, where you (and I) are commenting from, she does get a royalty...
  • by Anonymous Coward on Tuesday May 22, 2007 @10:03AM (#19220737)
    You may be on to something. There may be some dirty back door dealings going on with XM Sirius and the RIAA (and maybe even the car companies) to collapse standard free radio stations in favor of the paid service. Look what they are doing to internet radio, look what they did to NPR. The RIAA is acting without any regard to what the future consequences might be. What happens when the only service you can get is paid satellite radio. What happens when there is no infrastructure left for standard broadcast. The RIAA has put all its eggs in one basket and has put them on the dashboard and is driving 100mph (or ~161kph for the rest of the world) towards a concrete wall. In 20 years, when all you base are belong to the riaa and somebody has whacked all our satellites and we have no way of notifying the population of the coming invasion, we're all going to wonder if the RIAA didn't have something to do with it...
  • by seanyboy ( 587819 ) on Tuesday May 22, 2007 @10:14AM (#19220911)
    Given the amount of support given from the National Assn. of Broadcasters to Internet radio stations over royalty payments (ermm, none), I'm pretty happy for Radio stations to start paying royalties.

    To paraphrase:
    Hey, First they came for the music file sharers and you did nothing.
    And then they went for Internet Radio Stations and still you did nothing.
    And then they got the Satellite broadcasters and you didn't do anything then.
    And now they're coming for you.

    The radio stations can complain as much as they like, but in this situation, I can't be fucking bothered.
  • Actually... (Score:2, Interesting)

    by alexandreracine ( 859693 ) <alexandreracine@gmail.com> on Tuesday May 22, 2007 @10:47AM (#19221469) Homepage Journal
    ...when you go to other country, radio stations do pay royalties.
  • by Goldarn ( 922750 ) on Tuesday May 22, 2007 @11:25AM (#19222111)
    And, once again, art pre-imitates reality: http://www.improveverywhere.com/2002/01/19/writers -against-piracy/ [improveverywhere.com]
  • by Aladrin ( 926209 ) on Tuesday May 22, 2007 @11:42AM (#19222395)
    Okay, you have an edge case.

    But that doesn't mean anything other than that your money will go more directly from your pocket to the RIAA's than before.

    Before: You -> Radio ~> CD sales -> RIAA
    After: You -> Radio -> RIAA

    Radio music causes people to want to buy CDs of music they like. Previously your money funded advertising which provided money for the RIAA in the form of CD sales.

    I'd like to think that your option would be the one chosen, and that radio stations would listen to those who pay them money directly... But XM and Sirius take money directly from their consumers and they seem to ignore their customers as much or more than regular stations, so I don't have much faith in companies doing the 'right thing' for their customers in this case. (And most others, anymore.)

    Enjoy your radio station. It may end up being the last decent one in this country.
  • Re:Payola (Score:3, Interesting)

    by hedwards ( 940851 ) on Tuesday May 22, 2007 @01:03PM (#19223591)
    It'll be interesting to see how ASCAP reacts to this development. The argument that the RIAA has any sort of write to royalties on performances is tenuous at best. Radio stations already pay licensing fees as do restaurants, elevator companies and others that play recorded music. Expecting them to pay another set of licensing fees to cover the incompetent management of the CD industry is egregious.

    Of course, this is the RIAA so egregious is the silent e.
  • by Anonymous Coward on Tuesday May 22, 2007 @02:36PM (#19225061)
    No. This time is for real. Maybe the RIAA is reading the Onion to get tips for get more revenue.
    Oh no. Real people are going do those stupid and crazy things in the Onion?! Maybe these people should read the "Darwin Awards" and do those things on there and that would help us immensely.
    The RIAA needs to get get on the current world situation and look at other methods of getting revenue for their clients. DRM is dead and there needs to be other reasonable methods to allow music listeners to get their music at reasonable prices so that people don't pirate music. It is the true deadbeats that the RIAA and other law enforcement organizations need to go after since these are the real people that steal from others to feed their habits. The RIAA and other organizations like them are make laws for a few bad people but are punishing the large majority of reasonable and paying customers.

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