“‘We’re not going to stay in the business if cost is more than we make long term,’ Ian Rogers, general manager at Yahoo’s music unit, said in an interview,” Tirrell reports.
“Yahoo and AOL stopped directing users to their radio sites after SoundExchange, the Washington-based group representing artists and record labels, began collecting the higher fees in July. Those royalties may stifle the growth of Internet radio, which increased listeners 39 percent in the past year, according to researcher ComScore Inc. in Reston, Virginia,” Tirrell reports.
“SoundExchange, which represents record companies including Sony BMG, Warner Music Group Corp., and Vivendi SA’s Universal Music Group, sought the royalty increase amid a drop in industry revenue. U.S. sales of compact discs fell 20 percent from 2004 to 2006, according to data from the Recording Industry Association of America,” Tirrell reports.
Full article here.
The greedy bastard music cartels are committing suicide in slo-mo before our very eyes. It’s a macabre show, but oh, so satisfying!
It is not necessary to change. Survival is not mandatory. – W. Edwards Deming