Apparently, someone in the record industry has begun to figure out that cutting off their noses will only spite their faces.
From Billboard: Major Labels, Large Webcasters Reach Agreement Over Rates.
Major record labels and SoundExchange have just reached a deal with the large webcasting services over crucial terms covering royalty rates that webcasters must pay to stream sound recordings through 2010, Billboard.biz has learned.
Under the deal, reached during a confidential meeting held in New York today, large commercial webcasters … will not have to pay more than $50,000 per service as a per-station or per-channel minimum royalty to webcast sound recordings, according to a source close to the negotiations.
Also, the large webcasters will not be required to implement any particular kind of technology to prevent the streamed music from being ripped, i.e. copied, by users, the source says. But the services have agreed to cooperate and discuss implementation of anti-stream ripping technology on their services with labels and artists.
No final agreement has been reached yet with small webcasters. SoundExchange sent a letter to them this week offering to carry forward old rates through 2010, which is the last year for which rates were set by the CRB under copyright regulations.
Think the record companies will ever get it? Digital technology WAS the best thing to ever happen to them. Instead of embracing it, they fought it, and now they’re screwed. Musicians, for the most part, aren’t harmed by file sharing; only record companies are. if record companies were smarter, they could turn this to their advantage. Instead, they keep giving in to their short-term greed.
Here’s one hint, RIAA; $18.99 for a Beatles CD at a music store? An album we bought on LP 35 years ago for $3.99? And you want to know why people download from peer to peer services? Get real.