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Music in a Cage

To date, record label attempts at adding copy-control systems to CDs to restrict their use have been less than totally succesful. We've had Sony discs that get">http://www.stereophile.com/news/11341/">get stuck in computers, discs that don't">http://www.stereophile.com/news/11261/">don't reliably play in all CD players, trademark">http://www.stereophile.com/news/11247/">trademark violations, and CDs that generate lawsuitshttp://www.stereophile.com/news/11134/">lawsuits; and consumer frustration from not being able to create a "fair-use" personal copy of a disc to throw in the car.

Web Royalty Deal Near Completion

A long-running dispute between the music industry and small webcasters may have come to an amicable conclusion. Over the weekend of October 5-6, representatives from both sides agreed on a system of royalties to be paid to record labels and artists based on a percentage of webcaster revenue or expenses, rather than on a per song basis. Last summer, Librarian of Congress James Billington decreed that all webcasters should pay a royalty rate of 0.07¢ per song per 1000 listeners. Many small webcasters, including many college radio stations, chose to go offline rather than face fees they couldn't afford.

Better To Switch Than Fight

Media critics may be right: If record companies had spent as much effort building a digital distribution network as they have fighting digital piracy, they might actually be making money online instead of complaining about it. This is the conclusion of a new report from KPMG and the Economist Intelligence Unit.

Music Sales Continue Slide

Sales of recorded music declined by 9.2% on a monetary basis and 11% on a unit basis worldwide during the first half of 2002, according to recently released figures from the International">http://www.ifpi.org">International Federation of the Phonographic Industry (IFPI). The drop is a continuation of a long slump that began in the mid-1990s, blamed by many music industry executives on the widespread use of CD burners and the popularity of downloading tunes on the Internet. Others acknowledge that increasing competition for consumers' time and money—especially films on DVD—is eating into music industry profits.

Music Industry Tune-Up

We've heard the sad tales from the record labels and distributors about their ever-weakening music sales, but there are other players in the market who are also feeling the pinch: retailers.

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