Record Companies Resort To Different Tactics To Collect Money
It appears as though the music industry has found a new strategy to cash in on royalties. As music lovers are well aware, at first these companies tried to sue individual users for illegally downloading music. But it is painfully clear that this approach to recover from major financial loss has destroyed their image in the public eye.
Rather than lowering the cost of albums in order to compete with free music circulating through the internet, record companies have turned to collection agencies who are now suing cellphone companies over royalties from ring tones. They contested that ring tones counted as public performances and therefore cell phone companies should be obligated to pay performance fees. The courts quickly shot this down.
Despite this unfruitful endeavour to collect on royalties, Broadcast Music Inc is now suing T-Mobile over ring back tones, alleging that the mobile carrier is selling them without licensing agreements. Unlike ring tones, which play publically when someone calls, ring back tones are only heard specifically by the person calling. Instead of hearing a cellphone dialing, the caller will hear a song that was chosen by the cell owner.
Critics are quick to point out the apparent irony of this lawsuit. If ringtones, which can be heard by anyone around a cellphone, do not constitute public performance, it seems ludicrous to sue the mobile carriers over a ringback tone that can be heard only by the caller. With record companies suffering from huge financial losses, it seems as though they are grasping at straws in order to collect any money that they possibly can.
It does not seem that lowering the cost of CDs and DVDs is an idea that has occurred to the major companies. There are still a number of music fans out there that prefer to collect and own the media, however with prices constantly spiking, downloading music for free seems very tempting. CDs generally go on sale for about seventeen dollars.
Specific bands have been skirting the issue of music downloading through unique tactics. Radiohead, an alternative rock band, established a website where fans can download the music for free, or for a donation. Nine Inch Nails’ Trent Reznor has followed suit. With record companies’ unsuccessful lawsuits and declining public image, it seems as though thinking outside of the box and fair pricing may be more effective than bullying money out of mobile carriers and individual users.
Mallory Megan works for a debt collection agency. Also she writes stories on business, finance, consumer spending and collection agencies. Grab a totally unique version of this article from the Uber Article Directory
Related posts:
- Call Record Computer Software Can Enable You Spy In Your Kids, Spouse And Also Employees In this post you will learn how you could get...
- Put An International Debt Collection Agency To Work For You If you're a company and you've got buyers that owe...
- The Basic Facts Of Financial Services Companies A lot of people hear the term financial services without...
- Unlock The Identity Of Your Caller With Reverse Cell Phone Lookup The fast paced advancements in technology had made Reverse cell...
- Four Reasons Companies Make Marketing Investments Into Stubby Coolers Most companies spend a tremendous amount of money on the...
Related posts brought to you by Yet Another Related Posts Plugin.
Posted: April 17th, 2010 under Finance.
Tags: collection agency services, debt collection, debt collectors, Finance, long island collection agency services, long island debt collection, long island debt collectors, new york collection service, new york debt collection agency, new york debt collection services