by DJ ProFusion
Tue Apr 24, 2007 at 11:27:29 AM PDT
The Internet radio game is rigged and the Recording Industry Association of America (RIAA) has rigged it in their favor.
DJ ProFusion's diary :: ::
There has been an understandable public outcry against the RIAA’s attempts to more than triple the sound recording copyright royalties on Internet radio. (See Save Internet Radio from Corporate Money Grab) One solution proposed by Webcasters is to just not play RIAA-member songs under the assumption that then they don’t have to pay the royalty to the RIAA’s collection body, SoundExchange; Webcasters would then just pay the independent artist the royalty.
This sounds fair and just because it is. However, the RIAA is not about being fair and just. The game is rigged and the RIAA has rigged it in their favor. The strategy of playing only non-RIAA songs won't work though because the RIAA has secured the right to collect royalties on all songs regardless of who controls the copyright. RIAA operates under the assumption that they will collect the royalties for the "sound recording copyright" and that the artists who own their own copyright will go to SoundExchange to collect at a later date.
Look at the information on SoundExchange.com (RIAA created SoundExchange) and see how it works. The RIAA has secured legal authority to administer a compulsory license that covers all recorded music.
"The recent U.S. Copyright Office ruling regarding webcasting designated SoundExchange to collect and distribute to all nonmembers as well as its members. The Librarian of Congress issued his decision with rates and terms to govern the compulsory license for webcasters (Internet-only radio) and simulcastors (retransmissions)." (http://soundexchange.com/faq.html#b4)
"SRCOs (sound recording copyright owners) are subject to a compulsory license for the use of their music...SoundExchange was established to administer the collection and distribution of royalties from such compulsory licenses taken by noninteractive streaming services that use satellite, cable or Internet methods of distribution."
(http://soundexchange.com/faq.html#a4)
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By JAKE COYLE
The Associated Press
Wednesday, April 25, 2007; 8:25 AM
NEW YORK -- Spinal Tap is back, and this time the band wants to help save the world from global warming.
The mock heavy metal group immortalized in the 1984 mockumentary, "This is Spinal Tap," will reunite for a performance at Wembley Stadium in London as part of the Live Earth concerts scheduled worldwide for July 7.
The original members of Spinal Tap will be there: guitarist Nigel Tufnel (played by Christopher Guest), singer David St. Hubbins (Michael McKean) and bassist Derek Smalls (Harry Shearer). Rob Reiner, who both directed "This is Spinal Tap" and played the fake documentarian Marty DeBergi in the film, will also be in attendance.
A new 15-minute film directed by Reiner on the band's reunion will also play at the opening night of the Tribeca Film Festival in New York on Wednesday. The slate for the opening gala, to be hosted by Al Gore, was previously announced, excepting the Reiner short.
The festival is to open with a showing of several global warming-themed short films produced by the SOS (Save Our Selves) campaign. SOS is also putting on the Live Earth concerts, to be held across seven continents.
Reiner spoke to The Associated Press on Tuesday to explain the reunion of Spinal Tap _ a band always known more as a parody of rock `n roll excess than environmental awareness.
"They're not that environmentally conscious, but they've heard of global warming," said Reiner, whose other films include "When Harry Met Sally" and "Stand By Me." "Nigel thought it was just because he was wearing too much clothing _ that if he just took his jacket off it would be cooler."
Spinal Tap has reunited several times since the film, but hasn't for a number of years. For the band _ whose last album was 1992's "Break like the Wind" _ the occasion warranted a new single: "Warmer Than Hell."
Reiner provided a sneak peak at the lyrics: "The devil went to Devon, it felt like the fourth degree/ He said, `Is it hot in here, or is it only me?'"
The director said the new short film explains what the band has been doing with their lives lately. Nigel has been raising miniature horses to race, but can't find jockeys small enough to ride them; David is now a hip-hop producer who also runs a colonic clinic; and Derek is in rehab for addiction to the Internet.
Reiner, 60, has for over 20 years worked with the National Resources Defense Council, an environmental action organization. Though the Spinal Tap reunion will be a lot of laughs, he hopes the SOS short films program and the Live Earth concerts have a substantial effect.
"What I think is going to be nice about this whole effort is there will be marching orders for people," said Reiner. "Not only from a personal standpoint of what individuals can do in their lives, but a macro perspective with respect to the public sector and government."
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On the Net:
http://www.liveearth.org/
http://www.tribecafilmfestival.org/
April 5, 2007
NYT Op-Ed Contributors
Spinning Into Oblivion
By TONY SACHS and SAL NUNZIATO
DESPITE the major record labels’ best efforts to kill it, the single, according to recent reports, is back. Sort of.
You’ll still have a hard time finding vinyl 45s or their modern counterpart, CD singles, in record stores. For that matter, you’ll have a tough time finding record stores. Today’s single is an individual track downloaded online from legal sites like iTunes or eMusic, or the multiple illegal sites that cater to less scrupulous music lovers. The album, or collection of songs — the de facto way to buy pop music for the last 40 years — is suddenly looking old-fashioned. And the record store itself is going the way of the shoehorn.
This is a far cry from the musical landscape that existed when we opened an independent CD shop on the Upper West Side of Manhattan in 1993. At the time, we figured that as far as business ventures went, ours was relatively safe. People would always go to stores to buy music. Right? Of course, back then there were also only two ringtones to choose from — “riiiiinnng” and “ring-ring.”
Our intention was to offer a haven for all kinds of music lovers and obsessives, a shop that catered not only to the casual record buyer (“Do you have the new Sarah McLachlan and ... uh ... is there a Beatles greatest hits CD?”) but to the fan and oft-maligned serious collector (“Can you get the Japanese pressing of ‘Kinda Kinks’? I believe they used the rare mono mixes”). Fourteen years later, it’s clear just how wrong our assumptions were. Our little shop closed its doors at the end of 2005.
The sad thing is that CDs and downloads could have coexisted peacefully and profitably. The current state of affairs is largely the result of shortsightedness and boneheadedness by the major record labels and the Recording Industry Association of America, who managed to achieve the opposite of everything they wanted in trying to keep the music business prospering. The association is like a gardener who tried to rid his lawn of weeds and wound up killing the trees instead.
In the late ’90s, our business, and the music retail business in general, was booming. Enter Napster, the granddaddy of illegal download sites. How did the major record labels react? By continuing their campaign to eliminate the comparatively unprofitable CD single, raising list prices on album-length CDs to $18 or $19 and promoting artists like the Backstreet Boys and Britney Spears — whose strength was single songs, not albums. The result was a lot of unhappy customers, who blamed retailers like us for the dearth of singles and the high prices.
The recording industry association saw the threat that illegal downloads would pose to CD sales. But rather than working with Napster, it tried to sue the company out of existence — which was like thinking you’ve killed all the roaches in your apartment because you squashed the one you saw in the kitchen. More illegal download sites cropped up faster than the association’s lawyers could say “cease and desist.”
By 2002, it was clear that downloading was affecting music retail stores like ours. Our regulars weren’t coming in as often, and when they did, they weren’t buying as much. Our impulse-buy weekend customers were staying away altogether. And it wasn’t just the independent stores; even big chains like Tower and Musicland were struggling.
Something had to be done to save the record store, a place where hard-core music fans worked, shopped and kibitzed — and, not incidentally, kept the music business’s engine chugging in good times and in lean. Who but these loyalists was going to buy the umpteenth Elton John hits compilation that the major labels were foisting upon them?
But instead, those labels delivered the death blow to the record store as we know it by getting in bed with soulless chain stores like Best Buy and Wal-Mart. These “big boxes” were given exclusive tracks to put on new CDs and, to add insult to injury, they could sell them for less than our wholesale cost. They didn’t care if they didn’t make any money on CD sales. Because, ideally, the person who came in to get the new Eagles release with exclusive bonus material would also decide to pick up a high-speed blender that frappéed.
The jig was up. It didn’t matter that even a store as small as ours carried hundreds of titles you’d never see at Best Buy and was staffed by people who actually knew who Van Morrison was, or that Tower Records had the entire history of recorded music under one roof while Costco didn’t carry much more than the current hits. A year after our shop closed, Tower went out of business — something that would have been unthinkable just a few years earlier. The customers who had grudgingly come to trust our opinions made the move to online shopping or lost interest in buying music altogether. Some of the most loyal fans had been soured into denying themselves the music they loved.
Meanwhile, the recording industry association continues to give the impression that it’s doing something by occasionally threatening to sue college students who share their record collections online. But apart from scaring the dickens out of a few dozen kids, that’s just an amusing sideshow. They’re not fighting a war any more than the folks who put on Civil War regalia and re-enact the Battle of Gettysburg are.
The major labels wanted to kill the single. Instead they killed the album. The association wanted to kill Napster. Instead it killed the compact disc. And today it’s not just record stores that are in trouble, but the labels themselves, now belatedly embracing the Internet revolution without having quite figured out how to make it pay.
At this point, it may be too late to win back disgruntled music lovers no matter what they do. As one music industry lawyer, Ken Hertz, said recently, “The consumer’s conscience, which is all we had left, that’s gone, too.”
It’s tempting for us to gloat. By worrying more about quarterly profits than the bigger picture, by protecting their short-term interests without thinking about how to survive and prosper in the long run, record-industry bigwigs have got what was coming to them. It’s a disaster they brought upon themselves.
We would be gloating, but for the fact that the occupation we planned on spending our working lives at is rapidly becoming obsolete. And that loss hits us hard — not just as music retailers, but as music fans.
Tony Sachs and Sal Nunziato own an online music retail business.
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