One Martini Lunch for RIAA Lawyers?

EMI, the record company is acquired by a private investment group. The group wants to maximize shareholder value. Many ways to do that. Increase sales, maximize return buys, minimize costs. For the MBA mavens cost containment is always an low hanging fruit. Generally its the secretary or janitor that gets the axe. But this time –

British music industry major EMI wants to cut its funding to the industry’s trade bodies, a source familiar with the situation told Reuters on Wednesday, which could deal a blow to the fight against music piracy.

The source said EMI, which was recently taken over by private equity group Terra Firma, was looking at ways to “substantially” reduce the amount it pays trade groups.

The groups, the International Federation of the Phonographic Industry (IFPI), the Recording Industry Association of America (RIAA) and other national associations, represent music companies and the fight against illegal piracy.

That’s right, its the blood sucking lawyers turn. EMI is one of the big 4 funders of the two groups above. Following the trickle down, should EMI cut back that means there will be fewer $$ for the lawyers to chase those nasty downloaders.

Look the public has been on to the record industry for years. Your quality has dropped drastically. The average $25 CD has at best 5 songs out of 20 that are worth the money. The balance being filler. You turn the producers of your product into serfs using one way legal contracts. Your industry refuses to adopt to the new digital world. Then to put insult to injury, you have your henchmen running around suing the customer base. Finally having the gall to wonder why business is so bad.

That it took a private investment group to force EMI to see the light is all well and good. I hope EMI goes forward with reducing its participation. We as consumers should act in kind. Support the artists you like with purchases, online, that are offered at a fair price. If we do everyone can win.

Linky.