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
European Music Industry Reacts to "Brexit"
iHeartMedia-Nashville Names Morgan Huelsman Digital PD
In Brief - June 24, 2016
June 23, 2016
Republic Records Names Dan Cohen As VP/Marketing
WMMR/Philadelphia's 11th Annual I Bleed For Preston & Steve Blood Drive Hailed A Big Success
CBS Radio's Lisa Dent, Tim Roberts & Mick Anselmo Honored By Country Radio Hall Of Fame
June 22, 2016
Cumulus Media Appoints John Abbot as Chief Financial Officer
iHeartMedia Cannes Event With Ryan Seacrest And Usher
Berlin School & iHeartMedia Announce Return Of 'Leadership in Audio Innovation' Scholarship Competition
iHeartMedia/St. Louis Announces Launch Of Pride Radio St. Louis
June 21, 2016
Community Broadcasters Purchase Florida Stations From Apex Broadcasting
jācapps to Host Webinar on Understanding the Connected Car
NAB Introduces Inaugural PILOT Innovation Challenge
Report: Syndicated Radio Morning Host Kane Arrested For Allegedly Assaulting Wife
In Brief - June 21, 2016
June 20, 2016
Public Voting for National Radio Hall of Famers Starts Today
Music Artists & Industry Unite for DMCA Reform Appeal
iHeartMedia Launches First Programmatic Private Marketplace For Digital Radio
In Brief - June 20, 2016
June 17, 2016
CBS Radio Houston Names Rich Pangilinan APD/MD At KKHH (Hot 95.7)
Nielsen: The Modern Dad: An Untapped Audience For Marketers
Alpha Media Portland Names Kelsey McDaniel Director of Marketing
June 16, 2016
iHeartMedia Names Dan Mason as Senior Advisor for Broadcast Relations
Y100 Announces Mia Amini as Assistant Program Director
Music News
Kelly Clarkson Signs Worldwide Deal With Atlantic Records
Quick Hits: Bernie Worrell, Rihanna, Aerosmith, Kennedy Center Honors, Ralph Stanley
Led Zeppelin Wins Copyright Trial
Quick Hits: Kanye West, The BET Awards
Kanye West, The Weeknd + more to play The Meadows Music and Arts Festival
Quick Hits: Music Midtown festival, Drake, Chance the Rapper. Outta This World concert, Maynard James Keenan
Nick Jonas Debuts at #2, Drake Still Tops Billboard 200
Quick Hits: Made In America festival, Drake, Rita Ora, P.M. Dawn, Grouplove, The Beatles
Quick Hits: Guns N' Roses, Christina Aguilera, Meat Loaf, Suicide Squad soundtrack
The Recording Academy Announces Amendments and Dates For Grammy Voting
Quick Hits: Phantogram and Tupac Shakur
Quick Hits: Kanye West, The Grammys, Deftones, Lollapalooza, Charlie Puth
Kanye West Announces Saint Pablo Tour
Quick Hits: Iggy Azalea, Colbie Caillat, BET Awards, Breakaway Music Festival
Singer Christina Grimmie Shot and Killed After Concert
FMQB NOW

Brad Savage, PD
WAPS/Akron

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!