Rich Fiscus
28 Nov 2007 21:52
EMI, one of the so-called "Big Four" music labels primarily responsible for funding the RIAA, as well as similar industry organizations outside the U.S, is starting to look at contributions to such groups with a critical eye and ask whether they're getting their money's worth, and apparently the answer is no.
The British music label, which was recently purchased by a private equity fund, may be prepared to drastically cut contributions to trade groups. These groups perform a number of functions, both within the industry and in the lobbying arena. In recent years they've also become infamous for bringing copyright infringement lawsuits against thousands of people on behalf of labels like EMI.
Although they wouldn't confirm the story, an IFPI official told Reuters that "as one would expect in this market, there is a focus on efficiencies and savings." He also indicated that the organization, a sort of international version of the RIAA, is currently in the process of setting their operating budget for next year.
With online and brick and mortar retailers alike calling for the recording industry to switch to more customer friendly tactics, and EMI even leading the charge to get rid of DRM in commercial music downloads, this move shouldn't be particularly surprising to anyone familiar with music industry events over the last several months.
Source: Ars Technica