Digital Recording Of Satellite Radio Not Challenged By RIAA
January 4, 2005

Last summer, electronics manufacturers Time Trax Technologies and Delphi released devices that allowed satellite radio subscribers to record digital tracks from their receivers to a computer or personal music device (such as the iPod).  Just several weeks before that, the RIAA had sent a letter to the FCC that described the ability to record high-quality copies from digital broadcasts as the "perfect storm" for the music industry.  The RIAA is afraid that the recording of digital broadcasts could lead to increased pirating of music and might ruin the recording industry and online music retailers.  However, when asked to clarify the letter, Jonathan Lamy, a spokesperson for the RIAA, said the letter applied to digital broadcasts of terrestrial radio only (or HD radio) and not satellite radio. 

A closer look at the economics of the issue reveals a bit more about the curious position of the RIAA.  Artists and record labels are compensated from terrestrial radio based on the number of times a song is played and this model does not take into account the total revenue of a radio station or parent company.  Conversely, the compensation from the satellite companies is based entirely on revenue.  "When songs get played on satellite radio, recording artists get paid more money than when they get played on terrestrial radio," Sean Butson, a media analyst with financial services company Legg Mason, told Wired.  According to Butson, seven percent of the total revenue from the satellite companies is paid out to artists and copyright holders.  As a result, there is a possible motivation for the RIAA to favor the growth of both XM and Sirius, even if it means that the recording (and illegal distribution) of copied digital tracks increases.

Moving beyond a simple economic motivation, the potential audience for digital radio is also much larger than that of satellite radio.  The FCC is poised to require radio stations to transition from analog to digital broadcasting in the next few years, and some people believe the RIAA is simply going after the bigger threat.  Whatever the reason, this issue is nowhere close to a resolution.  In the coming months, a handful of new devices that allow the high-quality recording of satellite radio will be released.  While some of the devices include a process which records the satellite receiver's serial number into the song to making tracking easier, not every device has those features.  The Supreme Court is also set to hear the case of MGM vs. Grokster later this year.  The ruling in that lawsuit could greatly effect this issue, and change the influence of technology on the music industry for years to come.




 
Breaking News
Clear Channel's iHeartRadio Partners With AdsWizz
In Brief - July 22, 2014
July 21, 2014
Evolve Music Group Signs Worldwide Agreement With Capitol Music Group
Second Annual KBA WKU Radio Talent Institute Underway
2014 Conclave Learning Conference Dates Announced
In Brief - July 21, 2014
FMQB FYI... Links You Should Know About
July 18, 2014
Hubbard Radio Elevates Drew Horowitz To President/COO
The Week In Review: 7/14-7/18
CCM+E Names Jeff Davis OM For Greenville & Asheville Markets
Tony Cortez Upped to APD At KTFM/San Antonio
In Brief - July 18, 2014
July 17, 2014
Report: Driving Radio's Value With U.S. Auto Buyers
In Brief - July 17, 2014
July 16, 2014
Study: Coleman Insights And knowDigital Find Opportunity For NextRadio
In Brief - July 16, 2014
July 15, 2014
CCM+E Austin Names Jonathan "JR" Reed Program Director For KHFI & KPEZ
Westwood One Partners With Radio Industry To Support NextRadio Funding
Triton Digital Releases May Top 20 Rankers
Nashville's Own Meghan Trainor Hears "Bass" For The First Time On 107.5 The River
In Brief - July 15, 2014
July 14, 2014
Rob Morris Named VP/Programming, CBS Radio Tampa Bay
Eric Wong Promoted To EVP/GM At Island Records
Bob Pittman And Dan Mason Headline 2014 Radio Show Super Session
Music News
Weezer Goes "Back To The Shack"
Quick Hits: Avicii, iTunes Festival, Adam Levine, The Script, Demi Lovato, Johnny Marr
Upcoming Maroon 5 Album Features Gwen Stefani Duet
The Week In Review: 7/14-7/18
Quick Hits: Beyonce, Teen Choice Awards, Aaliyah, The Roots
Beyoncé Leads 2014 MTV Video Music Awards
Quick Hits: Bruno Mars, Kanye West & Iggy Azalea, Busta Rhymes, The Smashing Pumpkins, Pearl Jam, Johnny Winter
Sia's 1000 Forms Of Fear Is #1
Quick Hits: The Beatles, Tool, Jason Mraz, David Bowie
Train Announces Bulletproof Picasso
Quick Hits: Drake, Blink-182, Pharrell Williams, Gwen Stefani & Gavin Rossdale, Gerard Way, Cold War Kids, Alex & Sierra, Polaris Music Prize
Tommy Ramone Dead At Age 65
Quick Hits: Justin Timberlake, Metallica, Radiohead, Halestorm, Kiss, Interpol
Dave Grohl Talks Sonic Highways At HBO Event
The Week In Review: 7/7-7/11
FMQB NOW

Chase Murphy, PD
KXXM, KQXT/San Antonio

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!