Will Investors Pressure RIAA To Change Its Ways?

from the we-can-hope dept

The Motley Fool had an article last week predicting that the RIAA will soon be forced to abandon its lawsuit-happy business strategy, as a number of lawsuit targets have not only been winning in court but also getting their legal fees covered by the recording industry. The article makes a lot of points that Techdirt has been making for years, but a couple of things are particularly interesting about the article. First, the Motley Fool is a mainstream investment site that's read by a ton of people on Wall Street. If the financial press starts writing stories about how the lawsuits are a waste of money, these companies could start to feel increased pressure from their shareholders to find a new strategy. Secondly, the article makes an important point about the effects of file-sharing on musicians: file-sharing can hurt artists by reducing their sales, but it can also help them by getting the word out about their music. The former effect is more important to the superstars, who are already famous. But for up-and-coming artists, the benefits of greater exposure greatly outweigh any losses from their (already small) sales. Since most musicians aren't superstars, the rise of file-sharing may actually help the average artist, by flattening out the distribution of music revenues: Justin Timberlake won't be as rich, but up-and-coming bands will find it easier to reach new fans.

Filed Under: ,
Companies: riaa

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Will Investors Pressure RIAA To Change Its Ways?”

Subscribe: RSS Leave a comment
9 Comments
Frenchy Frog says:

Re: broken record

Man, nobody is forcing you to read these news stories. If you don’t want to keep reading “the same thing over and over and over again”, then stop reading it! I enjoy staying on top of what’s going on, and I appreciate reading about all the newest developments. Go complain to the RIAA if you don’t like to keep seeing their foolishness.

Anonymous Coward says:

These RIAA lawsuits against individuals are just plain stupid. Most can’t pay the judgements so there’s no recovery for the labels or the artists. It is simply a scare tactic that clearly isn’t working.

If Radio Head’s attempt to remake the music profit paradigm is successful then all these RIAA terror tactics are moot. Many musicians are beginning to understand they can make a decent living by performing and related merchandising. The music is simply ‘advertising’ to invite people to the performance.

Beefcake says:

RIAA Trafficks In Confusion and Sleight of Hand

The RIAA will just go in front of Congress and point to this article as a glowing endorsement of the need for enhanced digital rights legislature. “You see? This article states without question that with todays’s Constitutional laws of evidence we can’t protect ourselves from the market, so you obviously need to change these laws so we can go after the lawbreaking, grannies/kiddies/students/the dead and punish them for their high crimes against our poor, starving clients”.

And Congress will buy the entire nonsensical Chewbacca-defense argument because they don’t know what the heck anyone is talking about with this stuff, and don’t read things like bills and security assessments or articles-pointed-out-to-them-as-evidence.

Confused? Don’t worry, so is your Congressman.

Juanito (user link) says:

The Chewbacca defense strategy!!!!!!!!!!!!!

Motley Fool is a great site, they’ve helped shape my investment choices… It almost looks like they analysed the balance sheets and income statements and came across some huge HUGE legal expense charges, with more money going towards lawyers than coming in from fines.

Music was meant to be shared between friends. GigaTribe is a great way to share entire albums with friends: http://www.gigatribe.com

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Ctrl-Alt-Speech

A weekly news podcast from
Mike Masnick & Ben Whitelaw

Subscribe now to Ctrl-Alt-Speech »
Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...
Loading...