Via TechDirt: The RIAA hates webcasters, and doesn’t mind if they die, because webcasters don’t play much RIAA music at all. The RIAA would much rather this distribution channel, containing as it does mostly music created outside its cabal, simply vanish. They have no interest in its continued existence.
Traditional radio, of course, is dominated by a few similarly formated stations that all play RIAA-backed music. 87% of the music you hear on the radio is from an RIAA-member record label. However, when it comes to music on webcasts, the story is quite different. Jon Healy, at the LA Times, points out that only 44% of music on webcasts are from RIAA labels. This, at least, based on the findings of Live365, one of the larger webcasting services out there. So, with more than half the songs coming from non-RIAA labels, no wonder they’re less interested in keeping webcasts alive. And, of course, the situation really is a win-win for the RIAA (in the short-term). It either kills off those webcasters who don’t contribute to the homogenization of music, or it forces them to pay large sums even if they only play non-RIAA music. Of course, this is a strategy guaranteed to backfire in the long run, as it simply pisses off even more music fans who will simply look elsewhere for music.