The Allman Brothers and Cheap Trick have filed a class action suit against Sony for allegedly under paying artists for digital downloads
(story here). Is this another nail in the coffin of the major labels? Our readers and the industry speak out:
"Major labels aren’t going to die. They may end up paying more royalties on digital downloads, but they’re certainly not going to die." – Glen from Coolfer
"The big labels will die…
1. They don’t have the technology to compete
2. people don’t like them
3. They pick wrong enemies (Microsoft, Apple)
4. Their upper management is incredibly thick.
5. more importantly, they don’t have the next generation artist. They are too busy doing ‘Prince’ rehash or American idol. Lucrative at the moment yes, but nobody else care. 6. and … I won’t even mention hilarious business tactic similar to shooting themselves in the foot for short term profit." – squashed
It’s about time someone woke up and yelled about this. How many acts are stil
l stuck taking reduced royalties on the experimental CD format, and higher deductions because of the CD’s more expensive manufacturing process? I wonder what the return rate is on ringtones? – Boston Music Attorney Rob Falk
"Record companies have screwed artists from the dawn of the recorded music era. That IS NOT going to stop…But the digital era gives ACCURATE sales numbers. So, what do they do? Pay bupkes. Essentially nothing, for those yiddish-challenged…
The Allman Brothers and Cheap Trick are not going to get any more significant money. But now the average person is gonna know on a 99 cent download the artist doesn’t even make a nickel. And that just gives them more incentive to steal. Hell, the artists are not getting paid ANYWAY!" – Bob Lefsetz in the Lefsetz Letter
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