Analysis: RIAA - A Change of Heart, Or a Tactical Retreat?Authored by Paul Sweeting on December 19, 2008 - 9:59am.
I think we can now put away for good the old canard about the RIAA
funding its operations from settlements extracted from lawsuits against
alleged illegal downloaders. If the strategy were actually a
money-maker, it's unlikely the RIAA would be abandoning it, as the Wall Street Journal reported this morning,
especially given the tight budgets its member companies (like everyone
else) are probably facing for 2009. I think it's far-more likely that
the opposite is true and always has been: Bringing tens of thousands of
individual lawsuits has been a very costly undertaking of very dubious
value in combating illegal downloading. That's probably been obvious
even to the RIAA for some time, but it continued with the strategy
because it couldn't think of what else to do to try to deal with
file-sharing.The mass lawsuit strategy, in fact, has probably grown even more expensive lately, as the record companies face more and better organized and funded opposition, both from courts and defendants, which has meant more court hearings, more filings and a lot more billable hours for their attorneys:
Given those recent developments, it's not really a shock to hear that the RIAA is rethinking its approach. Whether their new approach will work any better is a question I'll address in an upcoming post.
Paul Sweeting is the Editor of Content Agenda, a business-to-business brand dedicated to the nexus of content, technology and business. This piece was originally published on Paul's blog "Media Wonk" on Content Agenda and is posted on DMW with the author's permission.
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