MAJOR RECORD LABELS WITHDRAW FROM RIAA
Join with Apple and Microsoft to Launch RARA: Respect Artist, Respect Audience
March 31, 2007 (Hollywood, CA) Music industry executives announced this morning that they were withdrawing support for the trade group the Recording Industry Association of America (RIAA) and launching a new representative body called Respect the Artist, Respect the Audience (RARA).
The move comes in the wake of a perceived failure of the RIAA to achieve its goals of fostering a business and legal climate that supports and promotes its members' creative and financial vitality. The RIAA has in recent years become synonymous with the industry's flagging business models and poor reputation with music fans. Recently the RIAA was ranked as the least popular business organization is the USA.
In announcing the break the four major record labels Sony/BMG, Warner Music, Vivendi Universal and EMI have also committed to dropping all pending lawsuits, and will instead join with Apple and Microsoft to create an environment where Digital Rights Management (DRM) technology will be eliminated from their online music stores. The companies are joining other personal electronics manufacturers and independent labels in a new organization, Respect the Artist, Respect the Audience (RARA) that will focus on creating a climate better associated with the creation of art, and the fostering of musical talent.
With the announcement of the new trade group, RARA spokesperson, Jeff Mutton said, The major labels will no longer fight technology but embrace it. The creation of RARA demonstrates that the industry has listened, that it believes it has identified a new way of engaging the audience to increase revenues for the labels and the artists. We realize selling high quality audio without DRM, and in formats unencumbered by software patents, we will give audiences the music they want in the formats they want. Music fans will also know that through RARA, a higher portion of royalties from any online music sale will reach the artist, because, lets face it, selling digital files over the net have a higher margin than CDs sold in a store."
RARA's member strategy is based upon three elements. First, RARA members will increase interoperability by focusing on standardization on file format unencumbered by software patents (Ogg Vorbis). Second, RARA members have committed to liberally licensing their catalogs to online stores to encourage innovative marketing and pricing based business models, and finally members have committed to increase royalties to the artist. By taking these steps, RARA will dramatically increase the number of customers and legitimize online digital music downloading. "We recognize that sharing music with friends is a natural human instinct and part of our social interaction. It's good for the artists because because they get the best kind of exposure -- friend to friend recommendations. By increasing the number of fans, and rebuilding respect for the industry, we expect to see an increase in sales over the longrun."
The RIAA will continue as an independent trade association in some form but will not receive funding from members of RARA.
Many industry insiders were surprised by this move, but those involved say talks began earlier this year as it became increasingly obvious that competing DRM platforms in Microsoft's Rune Marketplace and Apples iTunes Music store would be bad for artists, the audience, and the labels alike. Both Microsoft's Bill Gates and Apple's Steve Jobs came out publicly in opposition to DRM laying the groundwork for this stunning announcement.
About RARA
Respect the Artists Respect The Audiences (RARA) is the trade group made up of artists, music and entertainment industry companies and hardware and device manufacturers. Its mission is to foster respect for the artists and audiences that make this industry what it is. Its members are the record companies that comprise the most vibrant national music industry in the world, the artists that create some of the best music and other entertainment content and the device manufacturers that enable users to enjoy the music at home, in the office and on the go.
In support of this mission, the RARA works to protect the privacy and security of our members' customers and fans (the "Audience") and the copyright and First Amendment rights of Artists, respecting their contribution to our culture; conduct consumer industry and technical research; and monitor and review - - state and federal laws, regulations and policies. Their website
http://www.artistaudience.org/ is an important source of information about Respect.
