RIAA, record labels once again hurt the consumer
By: Dennis Mongello
Issue date: 7/13/07 Section: Ed-Op
Originally published: 7/12/07 at 11:47 PM EST
Last update: 7/12/07 at 11:46 PM EST
Originally published: 7/12/07 at 11:47 PM EST
Last update: 7/12/07 at 11:46 PM EST
However, Universal Music Group has decided to pull out of a long term contract with the Apple iTunes music store, the only store that seems to be consistently selling any of their music. They say they will still release music "at will" with Apple. This sounds fishy though.
Why would Universal make an enemy with the owners of the store responsible for over 70 percent of digital music sales, according to the NPD group? Well it just so happens that Universal is a strong proponent of DRM and their decision comes awfully close to Apple's recent announcement of the iTunes Plus store, through which consumers can purchase DRM-free music. It looks like this is more of an issue about control. Universal does not trust us, the consumers, and they want to retain control of all music they sell.
They obviously do not speak for all their artists. Chuck D of Public Enemy (which is signed to Def Jam Recordings, which is owned by Universal) could not be reached for comment, but he has historically been an advocate for the free distribution of music. So now, it looks like Universal is on the bad side of both their consumers and their artists. They are really betting on the wrong horse here.
Next on the list is the Copyright Royalty Board (CRB) raising the Internet radio rates drastically. This doesn't just apply to streaming radio sites like Pandora or the web simulcast of 610 WIP; it also affects subscription-based services like Rhapsody.
These rate increases make Internet radio much more expensive to operate than traditional radio or even satellite radio and will put a lot of sites out of business. Why is this an issue? Who is even losing money on the plays of these songs? The artists get their singles played, creating public interest, creating sales. Everyone wins, including the record labels.
I guess it's just not enough for some people though; they just want to ruin everyone's fun. That's exactly what it looks like this faceless CRB is trying to do. From the typical end user's point of view, this just looks like the greed of the record label is what is stopping them from enjoying their music.
Why would Universal make an enemy with the owners of the store responsible for over 70 percent of digital music sales, according to the NPD group? Well it just so happens that Universal is a strong proponent of DRM and their decision comes awfully close to Apple's recent announcement of the iTunes Plus store, through which consumers can purchase DRM-free music. It looks like this is more of an issue about control. Universal does not trust us, the consumers, and they want to retain control of all music they sell.
They obviously do not speak for all their artists. Chuck D of Public Enemy (which is signed to Def Jam Recordings, which is owned by Universal) could not be reached for comment, but he has historically been an advocate for the free distribution of music. So now, it looks like Universal is on the bad side of both their consumers and their artists. They are really betting on the wrong horse here.
Next on the list is the Copyright Royalty Board (CRB) raising the Internet radio rates drastically. This doesn't just apply to streaming radio sites like Pandora or the web simulcast of 610 WIP; it also affects subscription-based services like Rhapsody.
These rate increases make Internet radio much more expensive to operate than traditional radio or even satellite radio and will put a lot of sites out of business. Why is this an issue? Who is even losing money on the plays of these songs? The artists get their singles played, creating public interest, creating sales. Everyone wins, including the record labels.
I guess it's just not enough for some people though; they just want to ruin everyone's fun. That's exactly what it looks like this faceless CRB is trying to do. From the typical end user's point of view, this just looks like the greed of the record label is what is stopping them from enjoying their music.
