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Resnikoff's Parting Shot: A Deflated RIAA...

Tuesday, March 03, 2009
by  presnikoff

They used to call.  Early in the morning, to clarify, demand retractions, threaten, generate spin, or otherwise influence coverage on Digital Music News.  They were also quick to reply to inquiries, and quick to contest even the smallest of perceived mischaracterizations.  They wanted to set the record straight, at least according to their outlook or agenda, and they wanted to do it every time.  They were in your inbox, on your voicemail, and hard to ignore.

And they were very good at execution.  Sure, the RIAA gets low points on broader strategy, but this is an organization tuned to the demands of its clientele - in this case, a very small, influential group of top executives at the big four.  And this is also an organization that has followed its orders very well.

But somehow, at some point in the recent past, that started to change.  Not the accuracy or competency component, but the vigorous execution aspect.  Perhaps the continued erosion of the crown jewel album - year after year - is having a deflating effect.  Or, years of drubbing by an unsympathetic media, one that slowly recognized the futility of suing teenagers, screaming at ISPs, threatening universities, and trudging through expensive litigation challenges. 

Sure, Bainwol and company can still occasionally get one over on the Wall Street Journal, but the broader journalistic and blogger set is extremely skeptical.  Even in the courtroom, file-swapping defendants started making headway, and judges started to question the legal soundness of an induced download as evidence.

Somehow, the in-your-face, pressing blitz is waning.  The RIAA is not laying off 100 staffers, but they are laying off 25-30 people, and reorganizing.  Perhaps predictably, the loose chatter suggests a merger with redundant organizations like the IFPI, BPI, or even CRIA (Canadian Recording Industry Association).  That was an idea first brought to light by a more energized Guy Hands after discovering the heavy membership dues owed to various trade groups.

But Hands has much bigger fish to fry now.  EMI is being written down by half, and the heady days of big credit - and the questionable bets that came with it - are definitely over.  But Hands did manage to gain some concessions from the trade groups, and a distressed major label clientele certainly has less ability to pay big dues.

That will probably put pressure on top-heavy, million-dollar-plus salaries for the top guns.  Perhaps that has already changed - tax forms obtained by Digital Music News for 2005 and 2006 revealed annual compensation packages exceeding $1.5 million for both Mitch Bainwol and Cary Sherman, though later filings remain under wraps.  At those price tags, a vigorous attack and mission-friendly attitude is definitely part of the pay grade.  Hilary Rosen only criticized her organization after she left, after the big paychecks were over and a need to achieve some distance emerged.

So what's next?  Overseas, the BPI and IFPI have achieved more success - ISPs reluctantly joined the MoU, Eircom is playing three-strikes, and government officials are often sympathetic, at least within the United Kingdom.  Separately, a multi-industry consortium is pushing a three-strikes structure towards law in France. 

Undoubtedly very different playing fields, ones smaller and arguably more dedicated to their musical and cultural preservation.  But while the RIAA attempts to forge agreements with uncooperative ISPs and universities, the Irish Recorded Music Association (IRMA) is actually getting big players like Eircom to play ball.  

Can that limited success, however defined, be translated across the Atlantic?  Doubtful, especially now, especially considering the major differences between the countries and regions.  But the RIAA is now an organization faced with a number of unfavorable possibilities - including continued shrinkage or even consolidation with overlapping groups. 



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