riaa toilet paper Some of you may not realize it, but record companies (like EMI, Warner, Sony BMG and Universal) pay rather large amounts of money each year to trade groups like the RIAA and the IFPI which funds their operations. In return, these groups support the artists and labels and spend some of their money to help stop piracy. We all know how the RIAA operates and how they’ve been spending big dollars fighting piracy, but the people are fighting back and they’re not coming away with a win every time. Without money from record labels, trade groups would not have the funds to sue.

The RIAA is in business because of the record labels that fund them, so what would happen if these labels started to back out? They may be having to figure this out it other labels follow in the footsteps of EMI. Recently, the British label announced that they were considering cutting the amount of money that they provide trade groups because they’re not too happy with what they’re getting in return for the amount that they pay. Considering the IFPI alone says they get about $132.1 million each year from the big four record labels, EMI’s decision could prove to put groups like the RIAA struggling to make ends meet.

As Pieter points out in the forum, “Is RIAA’s reign of terror finally coming to a halt? Probably not, but EMI is considering to slash funding for the RIAA.” If the RIAA doesn’t have all of the funding that they’re used to, they’re not going to have the money to pay for the lawyers and employees that make the cases against accused music pirates.  I wouldn’t say that they’ll just drop dread, but trade groups could be in for some rough times as record companies reevaluate their spending and find ways to to save money. If they don’t feel that trade companies are doing enough, they may do exactly what EMI is doing and cut back on the amount they give. Could this mean less people brought to court by the RIAA?

Thanks Pieter!

Source: Ars

There Are 2 Comments

  1. Here’s a thought… save the money your pay RIAA and use that money to lower costs of the CDs, Customers in turn will buy more albums, more sales, more money, less pirating, obvious the approach RIAA uses isn’t working, so why not take a different stragery, lower prices, make it an easier to decision, do I download the album… or go to the local store and buy it… so cheap, it’s 100% great quality, and i get the artwork and jewel case… um… oh wait that’s right the prices are out of this world… I’ll just go download… and wait for the dumb asses to lower their prices, it’s been like the same prices for CDs since CDs came out…. supply and demand, easier to make and everything, thus prices are suppose to go down, not… send us all to court.

  2. Someone wrote:
    it’s been like the same prices for CDs since CDs came out…. supply and demand, easier to make and everything, thus prices are suppose to go down, not… send us all to court.

    It would be nice to see the prices of CD’s go down, but that probably won’t be until they are phasing them out like they did with cassettes. ;)

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