Record Labels Flip Out After Indian Copyright Board Massively Lowers Radio Royalties

from the get-ready-for-the-anti-India-spin dept

Get ready to hear all sorts of stories from record labels about how India is “anti-music” and a problem. That’s because the Copyright Board in India just drastically changed the royalty structure for playing music on FM radios. Rather than a set hourly rate of approximately $25.60 – $35.50/hour (1200 to 1600 rupees), it’s now saying that stations should just pay 2% of their net advertising. That turns out to be a massive change — perhaps a drop of about 90% to the record labels, since the current hourly rates represent about 18% of net advertising revenue. Of course, as the article points out, the 18% rate was much higher than most of the rest of the world and crippling to radio stations. But, in the world we live in, the record labels will never accept the idea that they don’t always deserve greater and greater rights to money.

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Comments on “Record Labels Flip Out After Indian Copyright Board Massively Lowers Radio Royalties”

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Dark Helmet (profile) says:

In unrelated news....

The United States of America rushed through a Congressional declaration of war against India. When asked for comment, Senator Handsout said, “We’re going after them for violating the nuclear arms proliferation treaty. It’s totally legitimate. India has nukes. Only America and Russia are allowed to have them. Plus, look how close they are to the Middle East. They’re basically terrorists.”

When one reporter pointed out to Senator Handsout that Pakistan was also a nuclear power and even closer to the Middle East, the Senator said he didn’t think that was true. “Show me on a map,” he declared haughtily. “Pakistan is nowhere near the Middle East. It’s in South America….isn’t it?”

Vice President Joe Biden also rallied for the cause. “What we’re trying to do here, people, is ensure the rights to life, liberty, and being constantly inundated with Lady Gaga songs….er, I mean freedom. Yeah, that’s the ticket! Freedom! And Freebird! God, I love that song!”

When asked for comment, Sarah Palin immediately began screaming, “I can see Russia from my house. FROM MY HOUSE!” She then proceeded to shoot twelve mooses in the kneecaps before decapitating them and bathing in their blood.

Meanwhile, the Indian government said something about a war started because they simply tried to regulate their own soveriegn economy. President Barack Obama replied indignantly, “That’s ridiculous. We totally respect soveriegn nations and their right to rule themselves. That’s why we’re invading them.”

It was about that time when this reporter’s spleen burst from the sheer stupidity of our elected leaders….

Hephaestus (profile) says:

Smart move actually ....

“Rather than a set hourly rate of approximately $25.60 – $35.50/hour (1200 to 1600 rupees), it’s now saying that stations should just pay 2% of their net advertising.”

This is actually a very smart move on the governments part. It allows Prasar Bharati, India’s public broadcaster, to not get charged. It reduces the burden to indian stations makinig them comparable or less than the rest of the world percentage wise.

TAM PR Comment Development Company, Ltd. says:

India loves music, and labels help sell the music.

Mike, you’re wrong again.

Record labels need to substantiate their business model in an ever-evolving market place. Taking $10 and putting $9 in your pocket, while giving $1 to the artist is a very good and viable model. I don’t understand why you have a problem with this.

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