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
Ryan Seacrest Announces KIIS FM's Wango Tango 2017 Lineup
WMGC (105.1 The Bounce)/Detroit Adds “Big Boy” To Mornings
107.1 The BOSS/New Jersey Announce Air Talent Line-Up
March 23, 2017
iHeartRadio Surpasses 100 Million Users
Westwood One Promotes Mark Wildman to EVP/Strategic Partnerships
March 23, 2017
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
iHeartMedia Names Geoff "G-Off" Owens PD For KXJM/Portland & KUBE/Seattle-Tacoma
c3 & FMC Statement: Elimination of the NEA, NEH, and CPB Indefensible, Shameful, and Senseless
iHeartMedia Introduces SmartAudio
Condé Nast Acquires Pop2Life And Ribyt
March 15, 2017
Radio One Houston Names DJ Riddler MD & On-Air Talent/Mixer For KROI (92.1 Radio Now)
iHeartMedia Names Mark Fuhrman Area President in Pittsburgh/West Virginia Region
REAL 103.9/Las Vegas Names Roxy Romeo APD/MD
iHeartMedia Washington, D.C. Debuts Cherry Blossom Radio
KBEB/Sacramento Names Bryan "B-Dub" Washington PD
iHeartMedia Portland Debuts The New 103.7 The Legend
Music News
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
Quick Hits: Kendrick Lamar, Iggy Azalea, Vans Warper Tour
Quick Hits: Gorillaz, Kaaboo Festival, March Madness
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
Ed Sheeran Earns Biggest Debut Week of 2017
Quick Hits: Drake, Pearl Jam, Fifth Harmony
Lorde's Melodrama Arrives June 16
U2 Announce 30th Anniversary Joshua Tree Box Set
FMQB NOW

Sam Milkman, EVP
Coleman Insights

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!