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A little while back I did a column on webcasting and the egregious royalty rate the RIAA’s shill-men, SoundExchange, pushed through the Copyright Royalty Board. In it, I quoted a few theories from the webcasters at AccuRadio about how the rate hike might affect the industry, if it didn’t demolish it outright. Daniel McSwain floated a theory that labels—specifically major labels, due to administrative complications that could effectively lock indies out of the process—might use a legal loophole to offer lower royalty rates to webcasters who agreed to play certain artists the labels were pushing. (And, incidentally, screwing over the artists that are supposed to be entitled to a cut of the royalty cash.) Excerpt: “This would allow the industry to ‘dictate the look and sound of playlists,’ according to McSwain. ‘It takes away any autonomy from webcasters and puts it completely in the labels’ hands.’”
Major labels: making your most evil nightmares come true.
