The main controversy that has messed up the music industry has to be the issue about Royalty Rates. Royalty Rates plays a very critical role in prices and consumer bargaining power. Music labels seek higher royalty rates while music fans demands for lower CD prices. This is where the Recording Industry Association of America (RIAA) made a blunt decision to lower Artist Royalties and price fix the music. While the Music Labels are laughing all the way to the bank! This led music fans to purchase music online and most of them turned to P2P File sharing. Even so, RIAA raised prices in digital music in effort to capitalize on the demand for legal online music. RIAA doesn’t realize that digital sales will help to boost the music industry. Where do you stand in this issue? Do you really think that lowering the Artist Royalties and having price control will save this industry? Before you make your decision, take a few minutes of your time and check out this video.
www.http://www.vizions.com
{July 29, 2007}
You Still think this doesn’t Affect You?
Rythem Malice 
RIAA taking issue into their own hands is definitely created haywire within the music industry. Thats why most of us are going rebellious on it! I mean, come on! they are not giving us an option when they increase the royalties rates! Atleast i will purchase music (nowadays) if it goes to the right person- thats the Artist!
Whoah! what a good insight there Rythemmalice! Even so, i’m quite suprise that u havent touch on illegal music download. If you review on that issue, you would probably understand why RIAA had to take certain steps to restore the damage done. Whether it works or not is another issue!Just remember, RIAA cant do it without the support of the music community!
Of Course, Royalty rates play a great role in boosting up the music industry. Music cannot be valued in money, it is the art that should be respected.Digital sales should be encouraged. It’s a great job to promote the music industry and to encourage the artists.
I totally agree with you..i think RIAA should decrease the price of CD’s and buying songs in internet…i dont remember myself when i last time bought a cd or purchase music online..i mean everyone knows how it easy to download song for free,and less people nowadays still remember that downloading songs on internet is illigal
That is good idea of lowing the price but i think there have some other good idea than lowing price such as find more effectival markting plan.Because cut down the price will be non stop. there will be other people will do the same way what you thought about!Find the way that cannot be replay your thought!thank you!
Actually I’m not so familiar with the music industry issues; I’m just sometimes downloading the music from internet and it is free. But, I think if for those music lovers, they would like to purchase the music CD at CD shop or from the internet at a reasonable price. RIAA can’t simply raise the price just only for they own purpose. As Tim said, they should listen to the music community first.
It’s good that actually people are still concern in the music industry nowadays..Really you’ve done a great job in acquiring some important parts and parcels and facts backing the music industry up..well done and all the best in your future blogs..
Hello………
The main controversy that has messed up the music industry has to be the issue about Royalty Rates. Royalty Rates plays a very critical role in prices and consumer bargaining power. So, as I am thinking to make the music industry for all income of people and affordable to buy.
Actually, music industry need to move through the movement of advanced technology.Music is desire,not compulsion.Those who wants to listen music there should not be any barriers from anyone.whatever the rules and restrictions to music industry,every individual has its own choice whether to buy cd’s or go online buying.I think artists should move ahead themselves and should prove that music industry should be saved along with the support of consumers otherwise its sure that music industry will stand alone without artists.i hope you will post more interesting posts furthermore.
hey great topic but the thing is i am not so familiar with the music industry but i do buy cds every now and then when there are latest albums or movie clips and so on. But i do think that the music industry in Malaysia is not doing that well and this is not a very good news for our Malaysian Industry and as well as the artists. I think you topic is a great one and yeah keep up your good work and i am looking forward for more information about the music industry since i have insufficient knowledge about this industry.
hey this is very contoversial therefore they should maintain the balance between royalties and cd prices…
Extracted from http://www.rte.ie/business/2007/0730/presswatch.html
PIRATE DOWNLOADS AT ALL-TIME HIGH – The Guardian reports that illegal music downloading is at an all-time high and set to rise further, according to a report that urges the record industry to make legal buying easier and cheaper.
The paper says that although social networking sites are boosting interest in music that translates into sales, a growing band of consumers are unconcerned about being prosecuted for illegal downloads, according to Entertainment Media Research.
Its fourth annual Digital Music Survey, a poll of 1,700 people, suggests illegal music buying is widespread, with 43% claiming that they are illegally downloading tracks, rising from 36% last year and 40% in 2005.
This year only 33% cited the risk of being prosecuted as a deterrent against unauthorised downloading, compared with 42% in 2006, the article says.
The findings also show that nearly one in five respondents – 18% – claimed an intention to download more unauthorised tracks, up from 8% in 2006.
The report says price is the key factor for the slowdown in legal downloading after sharp increases in 2005 and 2006.
As the cost of CDs in shops has fallen the perceived cost advantage of digital downloads has been eroded.
The report suggests one way to tackle that may be for music companies to consider introducing differential pricing.
It said 84% of consumers agreed that older digital downloads should be cheaper and 48% claimed they would be prepared to pay more for newly released tracks.
My take is that while digital music is shaping the future, we have to be mindful that proliferation of someone’s intellectual property can cause harm for the music industry in the long-term. Case in example, Tower Records worldwide has recently annouced its retail closure due to poor sales as a result of digital downloaded music.
As you mentioned, RIAA is certainly taking advantage here trying to capitalise on the demand for legal online music. This will only drive consumers to download songs illegally, and no one will gain from this- not even the people who download the music! As we all have read about, or heard of.. people who download music illegally are now being prosecuted in court for breaching intellectual property laws… although this is mostly happening in the confines of the US. I think the RIAA should support artists out there- it makes no sense to lower royalty rates so that cd prices are lower- but on the other hand increase the price of digital music! How is the music industry supposed to grow when such measures are being taken? Only time will tell what the future holds..
heya…. well i think its great tat ur topic is bout music, everyone can relate to it.. i think its because of cd prices r high tats y consumers turn to illegal donwloading.. so wat RIAA did was partially right..
wow..I wasn’t aware of all this. Thanks for posting these info up. Personally I seldom buy albums unless I really like it. This is due to the fact that I’m a mere student and the cd prices are just too high. This is also the case with most of my friends. The RIAA should look into lowering the cd prices as a big part of their target market is the younger age group who have a lower spending power. By lowering the price of the cds doesnt neccesarily mean that dey will be earning any less as the lower the price, more people will be able to afford to purchase more original cds and thus boost their sales. Thus, this will benifit all parties involved.