Dave Horvath
5 Jul 2007 10:03
Not to be content with merely going after lost assets from music file sharing, the RIAA has set its sights on yet another potential revenue generator. Stating that the advent of the Internet and the ease in which its tools can give consumers easier and more efficient access to music, the RIAA feels that they are no longer receiving the benefits due to them for allowing radio stations to play their music for free. While the overall financial outlook of broadcast radio has only seen very marginal increases in revenue as of late, the RIAA appears to want to kick the radio stations while they're down and at their weakest.
For at least 70 years, radio stations have been allowed to broadcast music of their choosing without the need to provide royalties to the recording industry or its artists. The agreement originally made between the two groups was an arrangement of free advertising and viewed as a necessary expense to get new and current artists noticed in the music community.
As of mid-June, 133 musicians and recording industry organizations, including the RIAA have formed a coalition called musicFIRST. Its aim is to press Congress into reviewing the copyright acts and reform the Digital Millennium Copyright Act of 1998. They would like broadcast radio to be treated to the same royalty obligations as satellite radio.
In another article, Chief Legal Officer for Clear Channel Communications states, "Congress has recognized for more than 70 years that the record labels receive a substantial benefit from the airing of their music on free radio. They are basically receiving free advertising. This idea is just plain backwards. They should be paying us to play their music. Unfortunately, that's against the law."
Several broadcasting companies have pulled out of negotiations with other entities on deals which would generate web related profits for the sole purpose of focusing their efforts on fighting what musicFIRST has proposed. It appears there will be a war on radio and we can only hope the good guys win.
Source:
MSNBC