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It's been quite some time since we last heard
about arguments between internet webcasters and SoundExchange (a group spun off from the RIAA to handle royalty collection). Back in the summer
of 2003, there was even a lawsuit over the royalties being set, that were
pretty clearly designed to put smaller, independent webcasters out of business. From the RIAA's point of view, this is perfectly typical. They
still view the world (especially the internet) as a broadcast medium. Therefore, they want a small number of "professional" content producers who
create the content for everyone else. In other words, NO COMPETITION, Then they can just sign a few ridiculously large licenses with those large
players, and "the people" get to consume it. It's a fundamental misunderstanding of the internet as a communications medium -- a medium where
people express themselves back and forth to each other, rather than a place we go sit back and "consume." While the fight had gotten quiet
lately, the good old RIAA was hard at work making sure that things were happening in the background. A bunch of folks submitted stories this
weekend noting that late Friday (making it less likely to make news), the
Copyright Royalty Board announced that it was adopting the royalty rates
SoundExchange put forth, and making them effective retroactively to the beginning of 2006 -- meaning that many small independent webcasters
are now facing a tremendous royalty bill they're unlikely to be able to afford (thanks to everyone who sent this in).
That last link goes through the impact of all of this on various players -- and it's not pretty. The new rates pretty much decimate a large
portion of the industry. And, it's only going to get worse, as the royalty rates increase at incredible rates ("2007's rate is a 37.5% increase
over 2006; 2008 and 2009's annual increases are about 28% per year; and 2010 adds another 5.5% increase.") Of course, this is utterly backwards
and damaging to the industry itself. A webcaster (especially the smaller, independent ones) is a great means of promotion for artists. It tends
to attract more loyal and well-targeted audiences, who are more likely to want to later go out and buy a CD, a t-shirt or attend a concert. It
lets the industry better promote material from a wider range of artists. However, in the industry's desperate need to charge for every single
use, they're effectively killing off yet another wonderful promotional vehicle. The industry continues to think that it needs to do this because
it wants to own all distribution and promotional avenues in order to be able to continue to take its large cut or "taste". However, that's no
reason for the Copyright Royalty Board to put in place these artificial barriers that only serve to protect the recording industry's outdated
Mafia like understanding of its own business model.
Vote with your wallet. Do NOT purchase any RIAA supported artists CDs this month (or ever). Send a message to the RIAA; We are fed up with
your controlling ways. It's time for the RIAA to finally get the picture! Traditional media is dead, the ARTISTS own their music, not the
recording industry, and the RIAA needs to adjust accordingly.
In my opinion, "artists" were stopped from making real music in the 70's. That's when labels stopped "finding" artists and started
manufacturing them. Did you know that signed artists dropped a staggering 46 percent during the 1979 thru 1983 time frame; as reported by the
World Music Institute. (http://www.heartheworld.org/) Look at any formulaic genre... boy bands,
hair metal, gangsta rap, teen girl aerobics (B. spears) etc. Very few "bands" today are real home grown talent, it's all mostly manufactured.
Today, as of this writing (June 2007) only 16% of what you hear as new music is actually home grown talent. That means roughly 84% of what you
hear on traditional radio is mostly manufactured. WOW!
Having the freedom to record and post your own tracks most definitely attracts more loyal and well-targeted audiences, who are
more likely to want to later go out and buy a CD, t-shirt or attend a concert. The Internet lets the ARTIST better promote material from a
much wider perspective. The RIAA is scared to death and rightfully so; there is little need for expensive management, expensive studio time, and
expensive proprietary formats. In short, there is little need for a music industry that follows an extremely outdated business model.
The RIAA and it's internet offshoot would just love for us to give up this internet nonsense and go back to letting the radio tell us what to buy
and letting the music store tell us how to buy it.
The unfortunate part of this is that the major players in the radio industry will now be the only competitors that are also able to afford the
developing internet-based radio for vehicles. This decreases the choice for consumers and current statistics (as predicted by yours
truly) is turning people off the medium, the net effect is reduced royalties for artists. Shouldn't the ARTISTS be making more money?
Royalties are very important and I support a fair amount that is the same for everyone. No doubt this will be a long and brutal fight, but in the
end ARTISTS will prevail.
Thank you to everyone who has written in to the studio and expressed your heart felt support for DeadSea. It means the world to me and so many
others. Much Love.
- BearMan
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