Did jukeboxes cause the downfall of the music industry?

Submitted by Patrick Grote on Sat, 06/02/2007 - 7:34am.

It's no surprise that the music industry is in dire straits. They still make money, but they aren't making the money they have in the past. The RIAA is ratcheting up its forces against those who share music, and most people are turned off by today's offerings. In response to this the industry is actually working against their consumers.

First, the industry is seeking to charge radio stations for performance fees. Right now the radio stations only pay composition fees that go to the song writer. Performance fees go to the performer. For years, radio was exempt from paying performance fees because it was understood that radio provided free marketing for the music industry. The RIAA wants to change this arrangement so they can make more money.

Now, I have no idea why the RIAA thinks this is a good idea. The main avenue people learn about new music is from the radio, and the most effective marketing tool the RIAA has is the radio. Well, I do have an idea. CD sales are in the toilet and the RIAA is pushing hard to maximize their revenue.

The RIAA has also pushed to change laws relating to used CDs in two states, Florida and Utah. Legislators have made the retail side of used CDs sales impossible in these states. I don't know why, but the laws exempt online used CD sales. Just so we can follow this logic, the RIAA thinks it's a good idea to prevent people from learning and enjoying new music. Amazing.

The funny thing about this is that the industry has always been slow to change. At this point in the game, the RIAA should be embracing the technology changes that free them. As I have said before, if the industry were to let me download high quality, no DRM MP3s for 25 cents a piece I'd be all over it.

To see how the industry embraces change all you have to do is look at a The Atlantic article from April of 1962. The article is entitled, "Jukebox Piracy." It's a fascinating look at an era where the industry through jukeboxes were evil.

The music industry still has a chance to straighten its fortunes, but they need to get moving soon.