DailyTech - RIAA Wants 30% in Royalties from Sirius

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Internet RIAA Wants 30% in Royalties from Sirius
Michael Hoffman (Blog) - March 4, 2006 11:27 AM

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35 comment(s) - last by tankedsecondch.. on Mar 18 at 10:16 AM

As satellite radio continues to grow in popularity, the RIAA believes it should get a 30% slice of the pie

Sirius Chief Financial Officer David Frear believes that satellite radio companies (i.e. Sirius and XM) shouldn't be obliged to have to pay higher royalties to record companies -- but the RIAA feels that it should get 30% of the revenues. Sirius and XM both already pay royalty fees to record companies so both companies are able to play copyrighted music over the radio. Both parties have until June 30, 2006, to reach an agreement, or an arbitrator will then be called in to help settle the case.

"There's been some tough talk from some of the labels," he said. Record labels haven't been happy with Sirius's new S50 radio which includes an MP3 player that allows users to record several hours of programming. The music industry insists that because of this "interactive" service, which is entitled to higher fees, satellite radio companies should have to step up and pay more.

Considering XM and Sirius have already spend billions on the infrastructure alone, high royalties like the ones proposed could cripple (contentwise and financially) either company overnight.

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30% - Yea, right!

By TomZ on 3/4/2006 6:05:01 PM , Rating: 3

Sure, like Sirius could even afford to pay RIAA 30%, which I believe would be an increase from maybe 5-6% now. There is no way they could afford that, and RIAA knows it.

This is just the RIAA trying to stop Sirius from producing devices that can record music, and at the same time, probably trying to increase to a "more reasonable" 10% of revenue or something like that.

RIAA are just one step above common criminals. Their record labels should be boycotted, at a minumim. I came across this web site, which should be of interest:

http://www.boycott-riaa.com/

Let's all join in!

RE: 30% - Yea, right!

By butane317 on 3/4/2006 7:12:39 PM , Rating: 2

They could certainly afford it, if they raised prices. But, that would make less people buy it, so they would profit even less. I think that by doing this, the RIAA is trying to put digital radio out of business because they are worried that it is a threat to them.

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RE: 30% - Yea, right!

By DigitalFreak on 3/4/2006 7:14:38 PM , Rating: 2

It's really too bad we just can't slaughter the f*ckers and be done with it.

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RE: 30% - Yea, right!

By masher2

(blog) on 3/4/2006 11:34:29 PM , Rating: 2

Yes, we should slaughter anyone who owns something we desire. As history has taught us, mindless anarchy is much superior to Capitalism and respect for property rights.

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RE: 30% - Yea, right!

By Questar on 3/6/2006 10:10:11 AM , Rating: 3

What I find disturbing is your post has been modded down.

Is this really the value technology enthusiasts place on life?

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Quit buying and listening to their music

By kkwst2 on 3/4/2006 10:45:34 AM , Rating: 5

I wouldn't waste my time getting upset with what those idiots try to do anymore. Nothing they do should surprise you by now. And don't depend on the government to do the right thing. I would support independent labels and radio. The recording indurstry doesn't put out very much that is remotely orignal or interesting anyway.

RE: Quit buying and listening to their music

By nwrigley on 3/4/2006 2:45:11 PM , Rating: 2

You pretty much summed it up.

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RE: Quit buying and listening to their music

By ogreslayer on 3/4/2006 4:14:15 PM , Rating: 2

took the word out of my mouth

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RE: Quit buying and listening to their music

By Le Québécois on 3/4/2006 4:15:02 PM , Rating: 2

It won't do much. Remember That case in January when the RIAA was(and still is) suing (http://www.dailytech.com/Article.aspx?newsid=512&c...)
for a song on which they didn't seems the have the right since the party paying for the defender was the owner of that song?

It seems the RIAA is ready do sue anyone for anything.

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!!!

By Missing Ghost on 3/4/2006 7:30:52 PM , Rating: 3

I dream of a world with no RIAA. May they all die a painful death.

RE: !!!

By tankedsecondchance on 3/5/2006 10:18:06 AM , Rating: 2

to see whats really behind the trouble with the labels/riaa and sirius you need to look no further then these two site's listed below on the first site click the news link and read the press release slowly.....this group was formed in march of 2005....yes thats larry namer of e-tv fame, the current project is for indie artist 24/7 exposure on a national digital tv platform to start with

this concept is a very disruptive one, which could crush the old labels, while limiting the use of the material to the semi exclusive platforms of partners

the riaa has lost control, the artist are looking for fair honest deals where the get paid........

heres the sites due some searchs see what turns up

www citysessionstv.com also look under the info tab
www worlddigitalmediagroup.com
www ymctv.com
www ymcrecords.com

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RE: !!!

By tankedsecondchance on 3/18/2006 10:16:39 AM , Rating: 2

Ready to try it again
Burned once, singer Celena Rae returns with fresh appeal
By Malcolm Mayhew
Star-Telegram Staff Writer
AUSTIN - If there's one thing that Fort Worth-born singer Celena Rae knows a thing or two about, it's challenges.

She was a semifinalist on last year's American Idol, the most popular challenge in pop music today. But before AI, she had been kicked around by the music industry, losing both a record deal and a production deal - a one-two punch that would have left other artists permanently bruised.

That's why she's not really sweating the challenge she faces by performing at South by Southwest. The 29-year-old singer, who grew up in the Wedgwood area of Fort Worth, graduated from Grapevine High School and now lives in Dallas, realizes that the music festival isn't exactly designed to help boost the careers of AI alumni; she also realizes that, in the eyes of some SXSW'ers, she's not really welcome.

"I know some people are thinking, 'What's the AI chick doing here?' " she says. "But South by Southwest has grown into such a large event, with so many different kinds of music, that I don't think it's that unusual - well, maybe it is a little. But I love me some Austin."

Rae performed a short set Friday at the Iron Cactus club, in the heart of the Sixth Street area. She was promoting several things: her upcoming, still-untitled, country-pop debut; a recent DVD called City Sessions - Dallas; and the new record label that put out the DVD and will release her record later this year. The company, YMC Records, is backed by Fortune 500 companies RadioShack, Dish Network and Sirius Satellite Radio.

Her album is being produced by Grammy and Dove award winners Chris Christian, a Dallas native, and Brown Bannister.

"It sounds like everything I like," she says. "Country, pop, rock, classic rock. But I'm a Texas girl, so I think it has sort of a Texas twist to it, as well."

For a while, Rae thought the last thing she'd be doing is gearing up for the release of a record. After winning another TV show, Dick Clark's Your Big Break, she went through what she calls "one heartbreak after another." She got a record deal, then lost it when the label wasn't into what she gave them. She also lost a deal with acclaimed producer Dann Huff, who has worked with LeAnn Rimes.

"I just gave up. I moved back home and quit," she says. "I didn't even listen to music for about a year. That's how heartbroken I was."

But, as she says, "the bug came back."

Rae calls American Idol a blessing and a curse. "In one way, you're thankful to the show, because, without it, you might have never gotten a shot," she said. "On the other hand, you want to prove to everyone that there's more to you than American Idol, and that you can move beyond it and establish yourself as an independent artist. That's my new challenge."

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RE: !!!

By Questar on 3/6/2006 10:08:17 AM , Rating: 2

I don't understand people that are modding up post that calls for the death of other human beings.

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Independent labels?

By ricleo2 on 3/4/2006 5:09:13 PM , Rating: 2

Can somebody post some links for any independent labels?Thanks.

RE: Independent labels?

By TomZ on 3/4/2006 5:58:50 PM , Rating: 2

There are zillions of indy labels.

I happened to be on Artemis' site today: http://www.artemisrecords.com/

Problem with smaller labels is that they don't have marketing $$$ so nobody has ever heard of their bands.

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RE: Independent labels?

By AlexWade on 3/4/2006 7:02:41 PM , Rating: 2

Here are some good indie artist you might want to check out:

www.katietodd.com (available on iTunes)
www.deepcds.com
www.46bliss.com (also on iTunes)
http://cdbaby.com/cd/rocktopus2

One of the best places to buy indie is www.cdbaby.com

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RE: Independent labels?

By Donegrim on 3/5/2006 11:41:55 AM , Rating: 2

And if you want something a little different, I think Warp is pretty much independant. I havent looked into it much, but they do seem to be, and the music is original, good, and not too mainstream. Someone please correct me if they are evil money wrenching ghouls.

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I think its about time we.....

By Chadder007 on 3/10/2006 12:44:42 PM , Rating: 2

I think its about time we have ourselves a "Boston CD Party".

RE: I think its about time we.....

By Wahsapa on 3/10/2006 6:04:19 PM , Rating: 2

if your for reals, im down

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RE: I think its about time we.....

By 9nails on 3/10/2006 7:45:06 PM , Rating: 2

Yeah, no fake. Where's the RIAA headquarters? Time to dump a load of disc's on their front yard with a big middle finger up in the air.

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RE: I think its about time we.....

By KristopherKubicki

(blog) on 3/10/2006 9:00:22 PM , Rating: 2

http://local.google.com/local?hl=en&q=RIAA%20headq...

But, I think you meant the MPAA since that is what this particular issue is about... not that it really matters though.

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By hans007 on 3/4/2006 6:50:30 AM , Rating: 3

this is freaking ridiculous.

why dont they just tax every tape player that can record audio while they are at it too.

RE: .

By DeathByDuke on 3/4/2006 7:29:30 AM , Rating: 2

because they lost in that attempt ;)

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RE: .

By Regs on 3/4/2006 8:02:20 PM , Rating: 2

Funny thing is verizon is doing the same type of thing. Trying to tax everybody.

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XM MyFi

By IsDanReally on 3/4/2006 1:33:26 PM , Rating: 2

Do they not realize the they XM MyFi records content just like the S50? It's hard to believe that I'm the only one able to go to xmradio.com and view the product listing. 30% seems like pure BS though.

RE: XM MyFi

By AppaYipYip on 3/4/2006 5:43:38 PM , Rating: 2

The MyFi records music, however, not 50 hours of music and not in mp3 format like the Sirius player. The next generation MyFi units from Delphi and Pioneer will be identical to the Sirius players.

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RE: XM MyFi

By mascan on 3/4/2006 9:49:51 PM , Rating: 2

Actually, the next generation XM2go units will have something that the MyFi already has, and the S50 doesn't: live portability.

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Monopolies

By BladeVenom on 3/4/2006 12:37:15 PM , Rating: 4

It just proves the point that the RIAA should be broken up, and the music cartel charged for monopolistic and anti-competitive behavior.

Unbelievable.

By knowyourenemy on 3/4/2006 2:10:47 PM , Rating: 2

The RIAA is becoming more poor (behavior-wise) by the day.

RE: Unbelievable.

By menting on 3/4/2006 4:11:05 PM , Rating: 2

what?? you mean they can go lower than they have already? :)

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RIAA Free!

By BladeVenom on 3/5/2006 1:06:31 PM , Rating: 2

For those who don't want to support organized crime this site will help you keep your music collection RIAA free. http://www.magnetbox.com/riaa/

RE: RIAA Free!

By TomZ on 3/6/2006 8:37:10 AM , Rating: 2

That's cool - I'll have to use that when I purchase CDs from now on!

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siruis' response

By chiguy2891 on 3/5/2006 12:24:24 PM , Rating: 2

should be, ok, but we want 30% of the revenue from your record sales since we are doing all the marketing for the music.

RIAA, take what you get or take nothing

By mindless1 on 3/6/2006 6:46:24 PM , Rating: 2

RIAA, enough is enough. In every instance that you're looking to increase profit, you are driving off customers.

Are you stupid, RIAA? You think we believe you're in financial trouble due to insufficient profit? HAH! Try firing a few people if you're that hard up, because IF YOU HADN'T NOTICED YET, WE CONSUMERS ARE GOING TO P A Y L E S S FOR OUR MUSIC. If you raise the prices, we'll buy less. Your best strategy would've been to price everything so dirt cheap we bought even things we didn't care about, just to get us used to pay per content, but NO, you end up alienating even the younger generation you hoped would adopt these newer delivery systems.

You think you have emerging markets but fail to see how small those markets are, relative to what they would have been had you not been so greedy. At this point you're going to suffer a loss from that attitude, will have to win back customers with more incentives and lower prices than ever. How much profit will you lose before you learn, RIAA?