Comment Re:That's kinda the point (Score 2, Insightful) 273
EXACTLY! You hit the nail on the head.
Non major label acts (ie. local and indie label acts) are a threat to the big 5 and the RIAA. The largest 2 reasons that CD sales have declined in the last decade is because a. quality and variety have diminished and b. paying $12-$19 for crap is a further deterrent.
Wider and alternative channels to get music they don't control (and artists they are not actively screwing out of royalties) has great potential to become a massive competitor were it ever to gain traction. So the obvious plan of course is 'don't let it gain traction'.
When the RIAA gives their gripes against digital distribution it usually comes down to two things about the format.
1. Users can just listen to what they want, when they want. Which is akin to playing from a CD.
2. "Perfect" digital copies can be made which obviates the need to purchase CDs or official distributions.
Do either of these apply readily to Net Radio? (Pandora maybe 'slightly' to the first point since you have some control over which artist, but still not completely a replacement for owning the CDs). The answer is NO. So why are they against this just as they are against MP3s?
Make no mistake about it. When it comes to the net radio stations, this is less about protecting the playing of their big acts than it is keeping uncontrolled competition out. They've had a sweet (corrupt really) deal going on for a long time. The artists largely get screwed BY THE LABELS (that fact doesn't get enough press) and they have a cartel lock over what actually makes it to the consumer. They will actively hunt and kill anything that is a threat to this. This is just the latest hunting trip.