Proves it doesn't care about music artists and petitions copyright judges to lower rate from 9 cents per song, about 13% of the wholesale price, down to 8% of the wholesale price, or around 5 1/2 cents per song.
There is an interesting report via the Hollywood Reporter from early last week that proves once and for all that the RIAA really doesn't care about music artists, or "content providers" as it often refers to them as. For record labels are working to lower the "mechanical royalty" it's required to pay to songwriters and publishers.
The RIAA says the current rate of 9 cents per song, about 13% of the wholesale price, is "out of whack with the rest of the world and historical context" and wants it reduced to 8% of the wholesale price, or around 5 1/2 cents per song. That's a reduction of around 39% in revenue for those actually responsible for creating the music in the first place!
"The contributions songwriters and music publishers make to the creation of songs, and to the music industry overall, are significant -- indeed critical -- to the success of the industry," Israelite said. "The NMPA will fight vigorously in the coming weeks to make sure songwriters and music publishers are fairly compensated for their work."
The RIAA defends the move by noting how it has to suffer while music publishers have not. "Record companies are suffering a contraction of their business at a time when music publisher revenues and margins have increased markedly," the trade group wrote. "While record companies have been forced to drastically cut costs and employees, music publisher catalogs have increased in value due to steadily rising mechanical royalty rates and alternative revenue streams made possible, but not enjoyed, by record companies."
Say what? The whole reason why record companies are "contracting" is because their very business model is doing so. It only makes sense that as music goes digital, that as physical CD stores close, those who marketed, manufactured, distributed, or had anything to do with them would find their jobs at risk. It's called Economics 101, and so to try and get a slice of other people's revenue simply because one refuses to adapt and find new sources of revenue is abhorrent.
Cutting the royalties paid to music publishers and songwriters won't solve the music industry's woes, instead it will only exacerbate the problem of a business model that refuses to recognize the changing landscape.
At least this proves once and for all that the RIAA really doesn't care about music artists like it tries to so often claim.
There is an interesting report via the Hollywood Reporter from early last week that proves once and for all that the RIAA really doesn't care about music artists, or "content providers" as it often refers to them as. For record labels are working to lower the "mechanical royalty" it's required to pay to songwriters and publishers.
The RIAA says the current rate of 9 cents per song, about 13% of the wholesale price, is "out of whack with the rest of the world and historical context" and wants it reduced to 8% of the wholesale price, or around 5 1/2 cents per song. That's a reduction of around 39% in revenue for those actually responsible for creating the music in the first place!
"The contributions songwriters and music publishers make to the creation of songs, and to the music industry overall, are significant -- indeed critical -- to the success of the industry," Israelite said. "The NMPA will fight vigorously in the coming weeks to make sure songwriters and music publishers are fairly compensated for their work."
The RIAA defends the move by noting how it has to suffer while music publishers have not. "Record companies are suffering a contraction of their business at a time when music publisher revenues and margins have increased markedly," the trade group wrote. "While record companies have been forced to drastically cut costs and employees, music publisher catalogs have increased in value due to steadily rising mechanical royalty rates and alternative revenue streams made possible, but not enjoyed, by record companies."
Say what? The whole reason why record companies are "contracting" is because their very business model is doing so. It only makes sense that as music goes digital, that as physical CD stores close, those who marketed, manufactured, distributed, or had anything to do with them would find their jobs at risk. It's called Economics 101, and so to try and get a slice of other people's revenue simply because one refuses to adapt and find new sources of revenue is abhorrent.
Cutting the royalties paid to music publishers and songwriters won't solve the music industry's woes, instead it will only exacerbate the problem of a business model that refuses to recognize the changing landscape.
At least this proves once and for all that the RIAA really doesn't care about music artists like it tries to so often claim.