The RIAA’s rocky future
Paul Resnikoff, the publisher of Digital Music News, takes a look at the sad state of the RIAA, post layoffs. The group, he noted, used to be fast with the press release, or to demand a retraction. Now, not so much:
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.
After varying reports last week*, it seems as if the group has dropped 25 or 30 employees, or at least a quarter of its work force. It’s turned away from its mass-lawsuit strategy, and is left with trying to scam some sort of a tax out of ISPs. That’s an approach that has not been laughed out of the political sphere overseas, but seems unlikely here.
The cutbacks may provoke further changes …
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.**
The RIAA is a private industry group and lord knows the industry can do what it likes with its (ever-shrinking) money. But I guess $1.5 million is the going price for being told what you want to hear.
* Note that the vision of apocalypse cited by Hypebot has not materialized.
** Rosen has a new tarnished client: The Ticketmaster/Live Nation merger.
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