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RIAA Pushes Bill to Expand Criminal Penalties for Copyright Infringement
Spotted on ArsTechnica
The RIAA wants to expand copyright law, with the apparent intention of having more technicalities to prosecute. The new law on the table is for album compilations. Specifically, having each track count as separate count of infringement.
Goggle’s top copyright lawyer was quoted saying the parties pushing this bill have an “unslakable lust for more and more rights, longer terms of protection, draconian criminal provisions, and civil damages that bear no resemblance to the damages suffered”.
Bottom Line: Fining someone upward of $9,000 for a track with a value of a dollar may not be fair, but lawmakers still seem to align themselves with this kind of enforcement.
Amazon Makes A Big Move with MP3s
Spotted on: Digital Music News
Mega online retailer Amazon is preparing to offer their MP3s in every language. The company cites an overwhelming demand from customers for their DRM-free music downloads (which includes titale from all of the major labels).
Given the size and power Amazon carries on the internet, they are poised to set a new precedent for selling music digitally. The largest online retailer of music by far is iTunes, and it will be interesting to see how Amazon’s shift to DRM-free music changes the playing field.
Bottom Line: Amazon offering their MP3 catalog worldwide will shift the landscape and methodology of digital music sales.
EMI Taking First Steps to Quit RIAA, IFPA
Spotted on: Ars Technica
Although still unconfirmed, rumor has it that EMI is seriously considering pulling their funding from the RIAA. According to a recent Variety article, EMI has taken early steps to exit from the IFPI, the international version of the RIAA. Part of the move is a demand by EMI that the RIAA and IFPA produce a proposal on restructuring by March 31.
Citing the massive cost of participation in these trade organizations, it seems EMI is very unhappy with the results being produced by the RIAA and IFPI. The public relations nightmares these organizations have created has been a major contributor the devaluation of music. If file sharing wasn’t labelled an almost terrorist act, it could have a huge impact on the perceived value of music.
More as this develops….
CD Sales Continue to Meltdown
Spotted on: Digital Music News
According to this daily industry bulletin, there was a 21% drop in music sales between Thanksgiving and Christmas. This is traditionally the hottest time of the year for music sales. This is on top of a 15% drop in sales for the year of 2007.
Bottom Line: Given plummeting sales and the major restructuring going on at EMI, 2008 may be the year where we see a major shift in how major labels operate.
Music Bigwigs Speak on the Industry
Spotted on: Yahoo
2007 was an interesting year for the music business. Music sales were up, and almost all of that boost came from digital downloads. Physical sales took a whopping turn for the worse. The AP asked a couple of industry-types what their take was, and here are some of the highlights:
“Big” Jon Platt, EMI: “…the problem, is that everyone is trying to fix the old model, and that’s obviously not working, so we need to build on a new model… The business itself has to get back into artist development…We just have to be creative in thinking of ways to grow an artist.”
50 Cent, Rap Superstar: “The actual record sales may be changing but people are actually getting the material the best way they can and coming out to see the show…When you have a record that doesn’t connect right away, if the company doesn’t have a passion behind an actual artist and feel like this kid is an actual star and support it, it’s just going to whither away.”
Michael McDonald, ATO Records: “The bottom line is if anyone had a simple answer, it would be in motion already…I do think music is as relevant and there’s more music out there than ever before…Everyone is looking for a solution, but the solution does not look like the music business has looked for the last 30 years.”
Mark Cuban, Sports Team Owner: “They sell music and they need to be everywhere and anywhere music generates revenue…their ultimate solution may be in reducing the price of CDs to under $5 across the board and building artists in order to monetize everywhere else.”
Bottom Line: Even successful music business people are completely lost to what’s next.
