Question #2:
Let's get down to brass tacks -
1:why is there truly a need for the RIAA any more, given the existance of technology that permits and encourages the bypassing of the "middleman" organizations in the first place? The impression most have been given is that the RIAA is out to squash the technology from P2P sharing to Internet Radio, simply because they have not been able to find a valid methodology of extracting "Caesar's" cut ("render unto Caesar what is Caesar's") from each unit sold (i.e., download that takes place). Is this the case, and if so/not, why/why not?

2:If the recently introduced bill permitting the scanning of individuals' computers ever sees the light of day, then how would you discern whether or not someone honestly owns (or has honestly purchased) a piece of music on their computer, as opposed to something that supposedly has not? Isn't this piece of legislation nothing more than a legal means to rifle through individuals' computers in order to glean yet more money from them in the form of users' fees or "fines?"

3:Are the RIAA (and by extension the MPAA) out to remove music (and video) from the net entirely, unless it is tightly and rigidly controlled?

Michael King

Cary Sherman:
1. Record companies have been major beneficiaries of new technology (from wax cylinders to vinyl to LPs to CDs), and the current technological developments are no exception. But let's face it, even great technology can be abused. And that's what we're confronting right now. Our companies have to figure out how to take advantage of the great new delivery systems that the Internet offers, without being seriously damaged by uncontrolled piracy. P2P in particular can really be a fabulous technology - but right now it's doing far more harm than good. (So our surveys show.)

Also contrary to your impression, record companies want Internet radio to succeed. We need lots of outlets for music, and webcasting is one of the most exciting new ways for new artists and new music to gain exposure. Record companies (and artists - who get 50% of the royalties) also want to be paid fair value for their music when it's used for commercial purposes by webcasters. Just because we have a disagreement over what fair value is for the music doesn't mean we want to "squash" Internet radio. Right now, we're in negotiations with small webcasters to figure out what kind of rate works for all sides.

As for the need for RIAA (and presumably record companies), there will always be a need for record companies - because they are the venture capital companies of the music business. They invest their money, and their time and energy, into developing artists and bringing them to the attention of the public. Record companies may change in the years ahead, but their core function will always be an important part of the music business.