• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
TechMusic

Record Industry Continues its War on Free Music

By
Mathew Ingram
Mathew Ingram
Down Arrow Button Icon
By
Mathew Ingram
Mathew Ingram
Down Arrow Button Icon
March 23, 2016, 1:18 PM ET
Spotify Announces Addition Of Video To Its Streaming Services
NEW YORK, NY - MAY 20: Daniel Ek, CEO and Founder of Spotify, speaks at a media event announcing updates to the music streaming application Spotify on May 20, 2015 in New York City. The latest updates include the ability to stream video content, podcasts and radio programs as well as original songs for the application. (Photo by Andrew Burton/Getty Images)Photograph by Andrew Burton — Getty Images
Add Fortune on Google for similar content.

The U.S. record industry’s umbrella organization, the RIAA, released statistics this week showing that annual revenues from subscription-based streaming-music services have overtaken downloads—news that won’t exactly come as a surprise to Spotify and Pandora fans.

The industry group could have used this momentous news to simply celebrate its ability to adapt to new market conditions and new business models, for the benefit of the artists it theoretically represents. Instead, in classic RIAA fashion, it couldn’t resist taking the opportunity to complain about how it’s not making enough money from ad-supported music services.

In a blog post, RIAA chairman Cary Sherman said that while music consumption is skyrocketing, “revenues for creators have not kept pace.” According to Sherman, that’s because while fans listened to billions of streams through ad-supported digital services like YouTube, “revenues from such services have been meager—far less than other kinds of music services.”

Let’s unpack this a little. In a nutshell, Sherman is saying that because ad-supported services—or in fact, any alternative music-distribution method—don’t pay as much as some other music services, they must be flawed and/or stealing from musicians and record labels.

In other words, the music industry’s largest negotiating body assumes that any new distribution method or infrastructure for delivering music to consumers must by default generate as much revenue as the industry used to get from records or CDs. And if it doesn’t, that means there is a structural error in the business that the RIAA needs to fix. But wait, it gets worse.

Sign up for Data Sheet, Fortune’s technology newsletter.

In describing this so-called “value grab,” through which some technology giants have apparently unjustly enriched themselves at the expense of those who create the music, Sherman blames what he calls “outdated, market-distorting government rules and regulations” that let technology companies like YouTube “pay below fair-market rates, or avoid paying for that music altogether.”

And what are these market-distorting rules, or “unjustifiable inequities,” as Sherman calls them? They include: “The exemption AM/FM broadcasters enjoy from having to pay artists and labels for the music they play, satellite radio’s unfair and inexplicable below-market rate standard, and the hopelessly outdated ‘notice and takedown’ provisions of the Digital Millennium Copyright Act (DMCA), which many services have distorted to rake in billions of dollars of revenue on the backs of artists.”

Courtesy of the RIAA
Courtesy of the RIAA

Yes, you heard that correctly. The RIAA is still complaining about the injustice of the terrestrial radio industry’s exemption from performance licensing fees, something that was worked out in the 1970s (and was based in part on the way that player-piano rolls were licensed at the turn of the century). The industry routinely tries to promote legislation to “fix” this problem but just as routinely fails.

Not only that, but the RIAA is still blaming the DMCA because it gives services like YouTube so-called “safe harbor” protection from damaging copyright lawsuits.

Apple Music reportedly has 10 million subscribers

All of this is just part of the record industry’s ongoing war on ad-supported music of any kind, whether it’s radio or streaming or YouTube videos. Even Pandora, which built a huge service based on the radio-style model, has effectively capitulated to the industry by de-emphasizing its free service and even writing a bizarre love note to the RIAA arguing that the ad-supported model is evil.

Here’s a radical notion: What if the revenues from records and CDs were artificially inflated for a variety of reasons, including the scarcity model that physical products allowed the industry to maintain? Why should a new distribution model for music be seen as flawed just because it doesn’t generate as much or more revenue as the previous model?

There was arguably just as much of a “value grab” going on in the music industry before the web and streaming came along, but it wasn’t YouTube that was doing the grabbing, it was record labels and publishers. Those days are vanishing quickly, but the RIAA doesn’t seem to want to admit it.

About the Author
By Mathew Ingram
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Tech

Sundar Pichai, chief executive officer of Alphabet Inc.
AIAlphabet
Anthropic and SpaceX just handed Google the biggest profit quarter in company history—on paper
By Eva RoytburgJuly 22, 2026
2 hours ago
‘It’s called StreetEasy, not StreetHard’: Mamdani cracks down on scourge of ‘housefishing’ and ‘real estate slop’
Real EstateHousing
‘It’s called StreetEasy, not StreetHard’: Mamdani cracks down on scourge of ‘housefishing’ and ‘real estate slop’
By Tatiana SatauaJuly 22, 2026
5 hours ago
As Washington panics about Chinese AI, Jensen Huang says open-source models like Kimi are ‘excellent’ and should be embraced, not banned
AIChina
As Washington panics about Chinese AI, Jensen Huang says open-source models like Kimi are ‘excellent’ and should be embraced, not banned
By Marco Quiroz-GutierrezJuly 22, 2026
5 hours ago
OpenAI CEO Sam Altman sits next to U.S. President Donald Trump.
AITech regulation
OpenAI’s rogue hacking incident was a warning shot. Will it be a wake-up call to finally create AI safety regulation?
By Jeremy Kahn and Emily ForliniJuly 22, 2026
5 hours ago
Man holding his hands open
InvestingStock
A new group of stocks is transforming global equities markets. Meet ‘Memi,’ the $3 trillion sector fueled by AI’s insatiable hunger for memory chips
By Amanda GerutJuly 22, 2026
6 hours ago
Sam Altman getting into a car
CybersecurityOpenAI
OpenAI’s models went rogue and hacked Hugging Face. It’s a wake-up call, experts say, but more concerning behavior may be next
By Beatrice NolanJuly 22, 2026
6 hours ago

Most Popular

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
9 hours ago
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
2 days ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
1 day ago
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
1 day ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
1 day ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.