Archive for April, 2007

The Big Box affect…

“In a story that ties in nicely with a recent discussion about the possible reprieve for Net Radio, the Wall Street Journal asks Can Music Survive Inside the Big Box? The article discusses how the ‘big box’ stores (e.g. Wal-Mart, Best Buy) are cutting back on space and acceptance of music CDs. With 85% of music sales still coming from CDs, maybe this is another thing to push the music industry towards better online sales models? ‘Thanks largely to aggressive pricing and advertising, big-box chains are now responsible in the U.S. for at least 65% of music sales (including online and physical recordings), according to estimates by distribution executives, up from 20% a decade ago. Where a store that depends on CDs for the bulk of its sales needs a profit margin of around 30%, big chains get by making just 14% on music, say label executives who handle distribution. One of these executives describes the shift as a tidal wave.’”

More on the Internet Radio Debaucle

So my personal favorite Internet radio station Pandora, has now spoken up! They are (rightfully) outraged by the CRB’s hasty, un-educated decision to back tax our small fledgling Internet radio stations into extinction.

Our friends at Out-Law.com have quite a good take on this. Check out Joe Kennedy’s comments.

Goodbye Internet Radio

Well, what was once a strong contender in the terrestrial radio race is going the way of the dinosaur. Internet radio is going to be extinct… No thanks to the latest rulings of the Copyright Royalty Board.

The CRB has just issued a ruling throwing out the appeals of Clearchannel, NPR, and a few other heavey hitters. Not that I really care about Clearchannel, but this isnt just going to affect them. This is going to take down most of our beloved, small internet radio stations.

Starting a month from now, internet radio stations will be expected to pay Millions in retroactive royalties for the musics streamed. This will end up alienating the little guys and closing all of their virtual doors.

Pandora, Last FM, Radio Paradise…. you will all be missed dearly.

The RIAA are just a bunch of Gangsters

So, what’s with the RIAA? I realize that in it’s inception, the RIAA had been meant to serve a larger purpose. To protect the interests of the Recording Industry and serve as our lobby, but give me a break.

Their latest scare tactic involves soliciting the help of Colleges and Universities in helping track down dubious infringers within the campus internet systems.

This has proved mostly ineffective as at least three schools have already refused to participate (for obvious reasons). University of Wisconsin, Nebraska and Maine have now pushed back on the RIAA’s requests and I figure more are sure to turn up soon.

Thr RIAA is simply going to have to find a better way to combat illegal file-sharing. With file-sharing at an all time high, the present methods are obviously not working. Perhaps they should put as much energy into going after the enablers as they are going after the end users. (This is kind-of like going after drug addicts instead of the dealers) … I mean, come-on!

So I say, good for the schools. Time for a new approach for the RIAA.