Wednesday, May 23, 2007

Corporate greed redux

The Washington Post reports that small Internet radio stations have been offered a break by the recording industry group SoundExchange.

This money-skimming outfit has offered to reduce the royalties it collects for music played online. It initially tried to triple current rates, retroactively yet, but is willing to settle for a mere 10 percent of all gross (not net) revenue up to $250,000 and 12% of all gross revenue above that amount. How generous. And how nice for them that they seem to have the US federal govt in their pocket.

Some more backgrounder here and here. Check the comments ... very illuminating, and sometimes entertaining!

If mainstream media and the entertainment industry don't pick up on the public mood and make some signficant changes to their business model soon, things could get very interesting. "Necessity" being the "mother of invention" and all...

In the meantime, may we suggest the RIAA, SoundExchange, and their legal beagles read this little story about a goose that laid golden eggs once upon a time.

Of course it is possible they may not get the message.


sherloq said...

sound exchange collects monies on a NON-PROFIT basis for artists, even Ukrainian ones. Are artists not allowed to be paid for their craft? Do your homework.

Pawlina said...

OK, maybe you can help me then.

How many Ukrainian and lesser-known non-Ukrainian artists benefit from Sound Exchange's largesse?

And what is the percentage of payouts to lesser-known artists compared to the big names that RIAA hypes?