SoundExchange Goals Hurt Artists and Most Labels

Kurt Hanson of RAIN reasons that the actual goal of SoundExchange, which represents/ fronts for the RIAA, which represents/ fronts for the four major labels (EMI, Warner, Sony-BMG, and Universal), is bad for most artists and lables. If their current strategy of hiking statutory licenses to bankruptcy levels takes root, radio of all shapes and sizes will be forced to cut direct deals with the labels. This will (a) cut the artists out of their share of monies collected, (b) give the major labels say over which stations can and cannot stay on the air, and (c) create a "reverse payola" situation by offerring certain of their artists to stations "royalty free" if the stations agree to play the labels' prirority records.

Read all about it in Kurt's excellent essay on the subject.