With The Recording Industry In Free Fall, Why Are RIAA Bosses Getting Raises?

from the rewarding-failure dept

It's difficult to think of a more disastrous strategy pioneered for the recording industry than the one cooked up by RIAA bosses Mitch Bainwol and Cary Sherman. The two were the "masterminds" behind the plan to sue fans directly, which has been an uncontested disaster that did absolutely nothing to help the bottom line of the record labels. If anything, the evidence suggests that the lawsuit strategy has only galvanized folks to look for alternatives beyond spending money on RIAA labels. The RIAA finally dropped the lawsuit strategy, which was deemed a money pit by a recording industry exec and almost resulted in EMI leaving the RIAA. After all of that, the RIAA itself had massive layoffs.

Given all of that, you might think that Bainwol and Sherman should be looking for new jobs. Instead, apparently, they've been given hefty raises. P2Pnet notes that Bainwol in 2008 made over $2 million dollars -- an increase from the $1.485 million he made in 2007. Sherman made $1.332 million, noticeably more than the $985k he made a year earlier. While I don't have any issue with the absolute amounts, I do question why these guys are getting raises while presiding over what will clearly be looked back on as one of the biggest blunders by an industry in decades. On top of that, I can see how some might question how the RIAA can claim to represent "starving artists" when its execs are doing so well. Apparently, the answer to not being a starving artist is to go become boss of the RIAA.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 2:38pm

    Because America likes to reward failure. Ie: Bail outs. It's in our culture.

     

    reply to this | link to this | view in thread ]

  2.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 2:45pm

    perhaps the crew from p2pnet (and techdirt for that matter) would do better to stop playing gotchya politics and concentrate on their own matters?

     

    reply to this | link to this | view in thread ]

  3.  
    icon
    :Lobo Santo (profile), Jul 12th, 2010 @ 2:53pm

    Re: LOL

    Yeah, cause obviously Techdirt and p2pnet are spending far too much money on their own executives...

    (Obvious troll is obvious)

     

    reply to this | link to this | view in thread ]

  4.  
    icon
    Matt P (profile), Jul 12th, 2010 @ 2:59pm

    Because they work hard and achieve results, and capitalism rewards them for that.

    That's what all the apologists tell me, anyway.

    It's nothing to do with a culture of corporate fellatio and worship of big-business under the guise of free-market economics. No sir.

     

    reply to this | link to this | view in thread ]

  5.  
    identicon
    MrWilson, Jul 12th, 2010 @ 3:01pm

    Re:

    I agree. Blogs should never report significant concerns about the business strategies of companies in industries that those blogs cover. Blogs should only post self-referential articles. That would draw in more readers! Oh yeah, and linking to other websites is illegal without express permission of the website's owners.

    /sarcasm (for those with malfunctioning sarcasm detectors)

     

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  6.  
    icon
    Jay (profile), Jul 12th, 2010 @ 3:02pm

    I am so glad that we can see the pottle calling the ket black. All they're going to use that extra money for is to lobby even stronger for laws and rules against we, the ones that see P2P or newer technology as great tools to be used rather than support an archaic business model. So sad that the money could have been used to instead make them much richer if only they could stop to think about their own consequences for 5 seconds.

     

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  7.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 3:06pm

    Re:

    That's the best trolling you can come up with? Work harder next time, please, TAM.

     

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  8.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 3:07pm

    Re:

    I doubt their personal salaries contribute to their lobbying efforts.

     

    reply to this | link to this | view in thread ]

  9.  
    identicon
    Daddy Warbucks, Jul 12th, 2010 @ 3:11pm

    "Bribes Work Best" plan

    If you could bribe those making the rules, you would grab as much as you could too. Welcome to the new Capitalism, bribe-for-bucks.

     

    reply to this | link to this | view in thread ]

  10.  
    identicon
    RadialSkid, Jul 12th, 2010 @ 3:19pm

    "Apparently, the answer to not being a starving artist is to go become boss of the RIAA."

    But of course. It's the only industry where you can actually fail upward.

     

    reply to this | link to this | view in thread ]

  11.  
    icon
    Christopher Weigel (profile), Jul 12th, 2010 @ 3:26pm

    Re:

    Psh. I thought the whole point of capitalism was to rise to the level best suited to your level of incompetence.

     

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  12.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 3:32pm

    When you are the boss you can give yourself a raise. Who else would give these people raises? Certainly not EMI.

     

    reply to this | link to this | view in thread ]

  13.  
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    Jay (profile), Jul 12th, 2010 @ 3:42pm

    Hmmm... Found something else. How they fund this:

    Source

    It's funny that the labels still take so much but believe they are entitled to more.

     

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  14.  
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    lux (profile), Jul 12th, 2010 @ 3:46pm

    You already know this

     

    reply to this | link to this | view in thread ]

  15.  
    identicon
    RD, Jul 12th, 2010 @ 3:48pm

    Re:

    "perhaps the crew from p2pnet (and techdirt for that matter) would do better to stop playing gotchya politics and concentrate on their own matters?"

    TAMhole Rebuttal Rule #4 (aka the "See to your own house first" rule): When you can find no real complaint about the topic in question (because its indefensible to begin with), sidestep the entire argument and attack from a completely outside and irrelevant direction, thereby proving your superiority and winning the new, completely invented argument by default because it didnt address your made-up-on-the-spot point.

     

    reply to this | link to this | view in thread ]

  16.  
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    Jay (profile), Jul 12th, 2010 @ 3:52pm

    Re: Re:

    Source

    Out of $1.3 million, I'm sure that Mitch's money goes mainly to those lobbying efforts since he's the top lobbyist. ( I can't find the info about how much he spends personally. I know that his check always say $5000 though...)

    Let's also remember that 2008 was an election year so all stops are pulled out for campaign funds. I find a huge discrepancy in spending before 2008. I forget when the Supreme Court said that it was unconstitutional to stop limits on funding. Perhaps that had a play in the field.

     

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  17.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 4:32pm

    Re:

    That's a pretty fine TAM-impersonation you've got there.

     

    reply to this | link to this | view in thread ]

  18.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 4:37pm

    Re:

    Intro to TAM-Comments; version 1.0:

    "TAM-comments", invented by this Anonymous Coward, are the criterion of truth for a scientific theory. The TAM-Comment is the outcome of a pissing contest between anonymous cowards advocating competing theories.

    The coward who pees highest is right, and gets his work republished. If he has truly impressive bladder power, he wins a Nobel Prize. The value of the TAM-comment is then recorded so that future generations of scientists can continue to test the theory.

    The TAM-Comment value was a significance test used widely by statisticians. Statistical analysis of TAM-Comments involves a variety of tests to prove whether TAM-Comments are important or not. Most of these tests involve a test statistic that lets you calculate a X-value (2%). If your X, Y, and Z axis are low (2%, 7%, and 1%, respectively), then your data is worthless and you know you just wasted all your time (2 seconds) and money (55ยข) in data collection.

    But ultimately, the Statistical Board of Statisticians decided on October 27, 2008 to phase out the TAM-Comment valuations with immediate effect, because it was - according to Karl Frederich Gauss Jr and his specialists - "just too damn difficult to understand".

     

    reply to this | link to this | view in thread ]

  19.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 4:43pm

    Re: Re:

    "Intro to TAM-Comments; version 1.0:"

    Where do I buy a TAM for dummies book?

    Uhm... A dummy book on how to be a dummy?

     

    reply to this | link to this | view in thread ]

  20.  
    identicon
    gothchya blogging - wink -, Jul 12th, 2010 @ 4:43pm

    Re:

    Attack the person not the topic,
    with Sarah Palin goodness.

     

    reply to this | link to this | view in thread ]

  21.  
    identicon
    heh, Jul 12th, 2010 @ 4:44pm

    Re:

    Am I shouting too?

     

    reply to this | link to this | view in thread ]

  22.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 4:46pm

    Re: You already know this

    err... you misspelled selfishness

     

    reply to this | link to this | view in thread ]

  23.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 4:53pm

    Re: Re: Re:

    "Where do I buy a TAM for dummies book?"

    It's not possible. A draft of the manuscript was sent to Michio Kaku last month for peer review, and it's reported that he shook his head in horror and utter disbelief.

     

    reply to this | link to this | view in thread ]

  24.  
    icon
    Karl (profile), Jul 12th, 2010 @ 5:18pm

    RIAA

    Because the RIAA is the Enron of music.

     

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  25.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 5:47pm

    Re: RIAA

    I thought they were the BP of music?

     

    reply to this | link to this | view in thread ]

  26.  
    identicon
    McCrea, Jul 12th, 2010 @ 6:24pm

    Re: Re: Troll wins!

    If the obvious troll is obvious, why do you say anything? Are you the troll-troll?

    No need to answer, I will just point out that the troll won. He has had more comments than the article.

     

    reply to this | link to this | view in thread ]

  27.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 6:43pm

    Being a trade organization run by a board of directors, all but one of whom (Bainwol) are associated with the member record labels, why is the RIAA, which is merely a proxy, constantly bashed as if it is not the one determining policy and filing lawsuits?

     

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  28.  
    identicon
    cookenstein, Jul 12th, 2010 @ 6:58pm

    Yesterdays news

    While what these guys make is clearly ludicrous, it matters little. It would not surprise me to find them declaring bankruptcy by/before 2015, and crying about how little they'd made for their hard efforts to clean up the so called piracy in the system. Oh Yes, how we do love reward mediocrity.

    And we wonder why this countries broke!!

     

    reply to this | link to this | view in thread ]

  29.  
    icon
    Jay (profile), Jul 12th, 2010 @ 7:19pm

    Re: Re: RIAA

    Hillary Rosen does have that covered.

    She can make a mess no matter where she goes.

     

    reply to this | link to this | view in thread ]

  30.  
    identicon
    Anonymous Coward, Jul 12th, 2010 @ 10:45pm

    Re: Yesterdays news

    Declaring bankruptcy?

    I have a music for that in their case.

    Uma! Uma!
    http://www.youtube.com/watch?v=jkXKurYN4f4

     

    reply to this | link to this | view in thread ]

  31.  
    icon
    PaulT (profile), Jul 13th, 2010 @ 12:29am

    Re:

    You first, TAM.

     

    reply to this | link to this | view in thread ]

  32.  
    icon
    jupiter (profile), Jul 13th, 2010 @ 1:54am

    Bainwol's "pay raise" was 15 times my annual salary.

    His $2 million a year could keep 50 musicians gainfully employed.

    I haven't bought any RIAA member music since they started this mess, and I may never buy any again for the rest of my life, and I spend a lot on music.

     

    reply to this | link to this | view in thread ]

  33.  
    identicon
    Anonymous Coward, Jul 13th, 2010 @ 2:09am

    Re:

    >perhaps the crew from p2pnet (and techdirt for that matter) would do better to stop playing gotchya politics and concentrate on their own matters?

    Why not troll there instead? You can't be that scared of Jon Newton deleting your posts; the way you work it'd strengthen whatever pitiful argument you have. Or is it Henry Emrich?

    perhaps the likes of tam, darryl, and technopolitical would do better to stop playing gotchya politics on Mike for just about every single fucking article and concentrate on their own matters?

     

    reply to this | link to this | view in thread ]

  34.  
    identicon
    Anonymous Coward, Jul 13th, 2010 @ 3:56am

    There's a lot of top end executives who have figured out ways to profit by setting up a company to fail.

    Take Radio Shack. The CEO gets a big raise, but maybe just in stock options.

    He fires all the experienced employees, and hires people who don't care for minimum wage. While the market adjusts to squeezing out radio shack, the savings on employee salaries looks great on paper. Stock price goes up, CEO sells stock and takes a new job with success at Radio Shack on his resume. Radio Shack then falls apart into what it is today.

    Similar thing happened with Motorola and lots of companies. Not everyone with stock wants long term success, some just want a quick buck and they can get it because they have enough capital in the game.

    The question is, have some of the RIAA executives figured out how to personally profit from the failure of the RIAA. If so, the RIAA will be nothing in a few years no matter what.

     

    reply to this | link to this | view in thread ]

  35.  
    identicon
    abc gum, Jul 13th, 2010 @ 5:26am

    Re: Re: Re: Troll wins!

    That's because everyone is shouting.

     

    reply to this | link to this | view in thread ]

  36.  
    identicon
    Danny, Jul 13th, 2010 @ 5:58am

    Re:

    "The question is, have some of the RIAA executives figured out how to personally profit from the failure of the RIAA. If so, the RIAA will be nothing in a few years no matter what."

    That depends on how they setup the failure. I would not rule the possibility of them setting up the RIAA to fail but setup shop under another name so that when RIAA actually fails they can move over to the new entity and start the cycle all over again with the promise to fight "piracy" even harder.

     

    reply to this | link to this | view in thread ]

  37.  
    identicon
    Samantha Murphy, Jul 13th, 2010 @ 9:32am

    Change

    The RIAA knows their days are numbered. The public is demanding transparency and there is no system left for them to game.

    Support an artist as the new Executive Director of SoundExchange. http://www.bit.ly/samanthamurphy

    I promise to create a transparent, fair system that distributes what it collects in a timely fashion to its rightful owner, the artists and the copyright holders.

     

    reply to this | link to this | view in thread ]

  38.  
    identicon
    Anonymous Coward, Jul 13th, 2010 @ 10:07am

    Re: Re: Re:

    I'll wait for the dumbed-down version.

     

    reply to this | link to this | view in thread ]

  39.  
    identicon
    Anonymous Coward, Jul 13th, 2010 @ 4:23pm

    Re: Change

    Even if we do how do I know your successor will do the same?

     

    reply to this | link to this | view in thread ]

  40.  
    identicon
    Anonymous Coward, Jul 13th, 2010 @ 5:41pm

    Re: Re: Re: Re: Troll wins!

    THEM STEALERS ARE DESTROYING OUR TROLLING INDUSTRY!!!

     

    reply to this | link to this | view in thread ]

  41.  
    identicon
    Brian Lee Corber, Jul 13th, 2010 @ 8:42pm

    RIAA raises

    Something stinks.

     

    reply to this | link to this | view in thread ]

  42.  
    icon
    Paddy (profile), Jul 14th, 2010 @ 6:49am

    Re: Change

    Great, another collection agency.

    Tell me again why we need these organisations?

     

    reply to this | link to this | view in thread ]

  43.  
    icon
    nasch (profile), Jul 15th, 2010 @ 1:18pm

    Trolling

    The two were the "masterminds" behind the plan to sue fans directly, which has been an uncontested disaster that did absolutely nothing to help the bottom line of the record labels.

    But maybe their revenues would have decreased even faster if they hadn't done this! We don't have enough information to say it didn't help!

    /troll

    Actually I don't think whoever said that the other day was trolling, I think he was being serious. Which perhaps is even worse.

     

    reply to this | link to this | view in thread ]


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