News Releases
One of our goals at the RIAA is to provide timely and accurate information on the issues affecting the music labels and the creative artists we represent that are of interest to the public and the media.
News Releases
White House Urged to Step Up Efforts to Protect Intellectual Property
March 24, 2010
Music, Movie, and Television Creators Embrace New Business Models, but Cite Growing Threat to Jobs from Copyright Theft
Washington, DC – A wide coalition representing American movie, television and music industry and labor groups today urged the federal government to bolster its efforts to protect intellectual property and protect the jobs and wages lost because of content theft.
In response to a request for public comment by the White House’s Office of Intellectual Property Enforcement, the American Federation of Television and Radio Artists (AFTRA), the Directors Guild of America (DGA), the International Alliance of Theatrical Stage Employees (IATSE), the National Music Publishers’ Association (NMPA), the Screen Actors Guild (SAG), the Motion Picture Association of America (MPAA) and the Recording Industry Association of America (RIAA) submitted a joint filing that outlined the organizations’ collective views.
The groups commended Victoria Espinel, the U.S. Intellectual Property Enforcement Coordinator (IPEC), for embarking on this landmark effort to develop the first Joint Strategic Plan for enforcing intellectual property rights. And while they hailed the promise of online distribution models, in their submission they emphasized that its potential was undermined by the theft of creative content:
While that threat takes many forms, the growth of online theft of copyrighted works presents the greatest and most urgent challenge. The Internet in general, and broadband services in particular, offer many new and exciting opportunities to consumers; prime among them are new ways to create, distribute, and enjoy copyrighted works. But when these networks are abused to provide widespread unauthorized access to these works, that undermines seriously the incentive to invest in the creation of content for this new medium, or for more traditional distribution channels. U.S. jobs, economic recovery and growth, and U.S. global competitiveness are consequently weakened. Unauthorized worldwide dissemination of full-length copyrighted works is clearly unlawful, under U.S. law and that of most other nations; yet it is pervasive online, and this abuse throttles the potential of the Internet to deliver its full benefits to the American consumer. While in many cases this unlawful activity is stimulated by criminal enterprises that profit from the thefts they promote, it also thrives on the willful ignorance and tacit support of other businesses that are unwilling to take commercially reasonable steps to address it. Online copyright theft undermines our economy, steals our jobs and threatens our national interest.
The filing catalogues not only the extensive studies documenting how theft of intellectual property results in lost jobs and wages for Americans all across the nation -- as well as the substantial economic contribution of the copyright industries -- it also examines the profound threat to the creative culture of our society:
While these studies and data paint a comprehensive portrait of the economic costs of copyright theft to our society, they should not obscure something else that is far harder to quantify but equally as powerful and important to the future of our country: the threat copyright theft poses to creativity, innovation, and culture in our society. This far more intangible contribution cannot be captured in terms of dollars or profit and loss. Making a motion picture or a sound recording comes down to a creative process that is the collaboration of many talented people – with an end result that is personal both to the creator and the audience. The motion pictures, television programs and sound recordings that our industry creates are a representation of our freedoms, our culture, and our diversity to the world. They are woven into the fabric of our culture and are part of our national heritage.
The organizations pointed to several emerging problem areas and urged that additional resources and tools be made available to address the increasingly sophisticated means of conducting online copyright theft:
The online environment has been dramatically transformed by technological and market developments, both with respect to the nature and scope of the online infringement challenge, and with respect to the effectiveness and flexibility of the technological tools available to meet it. For example, while the dawn of the Internet may have provided us with a glimpse of the possibilities for business, networking, and communication, the problems caused by illicit p2p networks, warez groups, and abuse of social networking sites were largely unforeseeable. In addition, the evolution of subscription-based and ad-supported services such as online lockers, direct streaming sites and linking sites impose new barriers to enforcement.
The exponential growth of illegal activity through these offerings has made it increasingly difficult for content owners to take effective measures. Many of these sites and businesses are specifically constructed to abuse the system and avoid copyright liability. Content owners and authorities need tools to address these illegal activities and the services that facilitate them.
Lastly, the groups’ filing emphasizes that effective strategies to combat theft are a “means to an end” designed to complement the innovative and attractive business models fully embraced and supported by the creative industries:
These tools, it must be emphasized, are critical, but they are means to an end. That end is a dynamic, content-rich, readily accessible, and hassle-free marketplace that excites and engages consumers while it also compensates those who, for almost a century, have made it possible for American movies, music and other media to entertain and educate audiences (around the world). We will continue to do our part: seeking out and embracing innovative new models, transforming how we do business to serve the 21st century consumer and offering fans countless new ways to enjoy their favorite content. The steps we identify in this submission are designed to bolster these efforts and ensure that both the existing and emerging business models attain their full potential to serve and satisfy both the public and those who create content.
About the Signers of this Filing:
About AFTRA
The American Federation of Television and Radio Artists, AFL-CIO, are the people who entertain and inform America. In 32 Locals across the country, AFTRA members work as actors, journalists, singers, dancers, announcers, hosts, comedians, disc jockeys, and other performers across the media industries including television, radio, cable, sound recordings, music videos, commercials, audiobooks, non-broadcast industrials, interactive games, the Internet and other digital media. The 70,000 professional performers, broadcasters, and recording artists of AFTRA are working together to protect and improve their jobs, lives, and communities in the 21st century. From new art forms to new technology, AFTRA members embrace change in their work and craft to enhance American culture and society. Visit AFTRA online at www.aftra.com.
About DGA
The Directors Guild of America was founded in 1936 to protect the economic and creative rights of directors. Over the years its membership has expanded to include the directorial team - Unit Production Managers, Assistant Directors, Associate Directors, Stage Managers and Production Associates. Today, through the collective voice of more than 14,000 members, the Guild seeks to protect the rights of directorial teams, to contend for their creative freedom and strengthen their ability to develop meaningful and lifelong careers in film, tape and digital media.
About IATSE
The International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied Crafts of the United States, Its Territories and Canada, AFL-CIO, CLC (IATSE) is one of the largest entertainment labor unions in the world and represents over 110,000 technicians, artisans and craftspeople employed in stagecraft, motion picture and television production, the trade show industry, and affiliated crafts throughout the United States, Its Territories and Canada. For background information on the International Alliance of Theatrical Stage Employees: www.iatse-intl.org.
About NMPA
Founded in 1917, the National Music Publishers’ Association (NMPA) is the trade association representing American music publishers and their songwriting partners. The NMPA’s mandate is to protect and advance the interests of music publishers and songwriters in matters relating to the domestic and global protection of music copyrights.
About SAG
Screen Actors Guild is the nation’s largest labor union representing working actors. Established in 1933, SAG has a rich history in the American labor movement, from standing up to studios to break long-term engagement contracts in the 1940s to fighting for artists’ rights amid the digital revolution sweeping the entertainment industry in the 21st century. With 20 branches nationwide, SAG represents over 125,000 actors who work in film and digital motion pictures and television programs, commercials, video games, industrials, Internet and all new media formats. The Guild exists to enhance actors’ working conditions, compensation and benefits and to be a powerful, unified voice on behalf of artists’ rights. SAG is a proud affiliate of the AFL-CIO. Headquartered in Los Angeles, you can visit SAG online at www.SAG.org or fan us on Facebook at http://fblink.com/ScreenActorsGuild.
About MPAA
The Motion Picture Association of America, Inc. (MPAA) serves as the voice and advocate of the American motion picture, home video and television industries from its offices in Los Angeles and Washington, D.C. Its members include: Walt Disney Studios Motion Pictures; Paramount Pictures Corporation; Sony Pictures Entertainment Inc.; Twentieth Century Fox Film Corporation; Universal City Studios LLLP; and Warner Bros. Entertainment Inc.
About RIAA
The Recording Industry Association of America is the trade group that represents the U.S. recording industry. Its mission is to foster a business and legal climate that supports and promotes our members' creative and financial vitality. Its members are the record companies that comprise the most vibrant national music industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate sound recordings produced and sold in the United States.In support of this mission, the RIAA works to protect intellectual property rights worldwide and the First Amendment rights of artists; conduct consumer industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi-Platinum™, and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales and its new Digital Sales award.
For More Information:
AFTRA: Christopher de Haan, 323-634-8203, cdehaan@aftra.com
DGA: Sahar Moridani, 310-289-5333, SMoridani@dga.org
IATSE: Katherine Orloff, 212-730-1770, iapr@mac.com
NMPA: Gayle Osterberg, 202-548-0133, gayle@133publicaffairs.com
SAG: Pamela Greenwalt, 323-440-2892, pgreenwalt@sag.org
MPAA: Howard Gantman, 202-293-1966, howard_gantman@mpaa.org
RIAA: Jonathan Lamy, 202-775-0101, jlamy@riaa.com
Cara Duckworth, 202-775-0101, cduckworth@riaa.com
#####
The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Contact: Jonathan Lamy Follow @LamyJ Cara Duckworth Follow @TweetCDuck Liz Kennedy Follow @LizSKennedy 202/775-0101
RIAA CEO Comments on FCC's New Broadband Plan
March 16, 2010
WASHINGTON -- The Federal Communications Commission (FCC) released its National Broadband Plan today to offer Congress recommendations and goals aimed at expanding broadband benefits across America during the next decade. Below is a comment on the plan from Mitch Bainwol, Chairman & CEO, Recording Industry Association of America:
“As President Obama said last week, intellectual property is ‘essential to our prosperity and it will only become more so in this century.’ We could not agree more.
“We look forward to working with the commission and other policymakers to ensure that the broadband plan fulfills its potential -- to respect the rights of creators and the jobs they provide, and to stimulate new jobs by enabling innovative business models that will deliver music to audiences in exciting new ways. Both are essential for the music industry to continue to invest in the artists who bring fans around the world the sights and sounds that have made America the world’s leading creator and exporter of music.”
#####
The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Contact: Jonathan Lamy Follow @LamyJ Cara Duckworth Follow @TweetCDuck Liz Kennedy Follow @LizSKennedy 202/775-0101
NARM And RIAA Announce "Give The Gift Of Music" Design Contest
March 15, 2010
Deadline for entering is April 9. Winner will receive $2,500.
Marlton, N.J. and Washington, D.C. – March 15, 2010: NARM, the music business association, and the Recording Industry Association of America (RIAA) today announce a design contest to renew and refresh the “Give The Gift Of Music” logo and slogan.
The music industry has long encouraged the sale of music via the “Give the Gift of Music” promotional program, symbolized by a logo and slogan that communicated the simple, yet effective message to consumers that music is a particular means of personal expression, thoughtfulness and consideration when given as a gift to a friend or a loved one.
Now, NARM and the RIAA are inviting companies and individuals to participate in the process of giving the music-gifting promotional program a fresh look and feel by submitting designs for a new logo – or even a new slogan, if the individual so chooses.
“Consumer studies consistently underscore the fact that people love to give and receive music as a gift,” said Jim Donio, NARM President. “With this contest, we are seeking the help of creative minds in the music industry and the music-loving community to help us communicate and promote the fact that consumers can give the gift of music in so many more ways than ever via physical, online and mobile options.”
“What’s especially exciting about the modern marketplace is the breadth of ways that fans can listen to and purchase music,” said Mitch Bainwol, Chairman and CEO, RIAA. “That extensive range of services, sites and physical products also means there are numerous new ways to expose friends and family to one’s favorite songs by giving the gift of music. This contest will help us better promote and tap into the extraordinary potential of gifting music.”
The deadline for entering the contest is Friday, April 9. The prize will be $2,500, and the winning slogan and logo will be announced at the 2010 NARM Convention, which will be May 15-17 at the Chicago Hilton. Entry form and complete rules may be viewed at this link: http://www.narm.com/give-the-gift-of-music/
About NARM: NARM advances the promotion, marketing, distribution and sale of music by providing members with diverse meeting and networking opportunities, information and education resources, and advocacy for their common interests. NARM is based in Marlton, New Jersey. Website: www.narm.com.
About RIAA: The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi-Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Media Contacts:
NARM RIAA
Marla Cimini Cara Duckworth or Liz Kennedy
856-616-1194 202-775-0101
cimini@narm.com cduckworth@riaa.com or lkennedy@riaa.com
#####
The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Contact: Jonathan Lamy Follow @LamyJ Cara Duckworth Follow @TweetCDuck Liz Kennedy Follow @LizSKennedy 202/775-0101
IFPI: New Report Shows How Much Record Companies Are "Investing In Music"
March 09, 2010
- US$5 billion a year invested in artists by record companies worldwide - Around 30% of revenues spent on artist development and marketing - US$1 million to break a new artist in major markets - US$160 "broader" billion sector employing two million people
To download a copy of the report go to: http://www.ifpi.org/content/library/investing_in_music.pdf
For further information please contact Adrian Strain or Alex Jacob, IFPI, Tel. +44 (0)20 7878 7939 / 7940
London, 9th March 2010 – Record companies, large and small, invest around US$5 billion a year in music talent, support a global roster of thousands of artists and typically spend US$1 million to break successful pop acts in major markets.
The figures are published in a new report issued today highlighting the work of major and independent record companies as the principal investors in artists’ careers. Advances, recording, marketing and promotional costs are the biggest items of record company spending on artists, commonly totalling six figure sums.
There are more than 4,000 artists on major record companies’ rosters combined, and many thousands more on independent labels. There is continuous re-investment of revenues derived from successful acts into new talent. It is estimated that one in four artists on record companies’ rosters were signed in the last 12 months.
Record companies are the largest investors in music talent, ploughing around 30% of their sales revenues – around US$5 billion worldwide - into developing and marketing artists. This includes an estimated 16% of sales revenues that is spent on artist and repertoire work (A&R), a proportion that significantly exceeds the proportionate research and development (R&D) expenditure of virtually all other industries. In addition, labels pay significant sums in royalties to featured performers.
Recorded music has a massive economic “ripple effect”, helping generate a broader music sector, including live music, radio, publishing and audio equipment, estimated to be worth US$160 billion annually. IFPI estimates that more than two million people are employed globally in this broader music economy.
“Investing in Music” report
Investing in Music is published today by IFPI, representing the recording industry worldwide, in collaboration with WIN, the international network of independent record labels. The report provides new figures and outlines the special skills and services companies provide in developing and promoting artists.
Alison Wenham, Chair of AIM/WIN, says: “The direct route afforded by the internet is open to all. However, mixing the talents of business and creativity is often a minefield, with creativity often compromised by the challenges of running a business, which requires totally different skills. Artists generally prefer to leave the complex administration of a rights based business to someone else.”
The report uses data from IFPI’s member record companies and case studies from around the world, including David Guetta, Kasabian, Little Boots, Jason Mraz, Belanova, Mousse T and Stephane Pompougnac. Highlights include:
A&R combines internet technology and traditional scouting skills, playing a critical role in bringing artists to a wide audience. Labels help their artists cut through the digital noise, with more than 2.5 million hip hop and 1.8 million rock acts registered on MySpace alone.
Record labels invest increasingly through “broad rights” deals across different activities of an artist’s work, including live and merchandising and branding. Multi-album deals are often important in allowing a return on this substantial investment. In many cases, artists and record labels enjoy long term partnerships.
The work in the studio to record the album and select the singles remains a very significant investment and area of collaboration.
The marketing skills and resources of record companies, from video production to online promotion, are essential in bringing artists to a mass audience. An international marketing “war machine” helps artists develop into global stars.
Despite the success of the live music sector in recent years, recorded music remains the foundation for a successful artist career.
John Kennedy, chairman and chief executive of IFPI, says: “Investing in music is the core mission of record companies. No other party can lay claim to a comparable role in the music sector. No other party comes close to the levels of investment committed by record companies to developing, nurturing and promoting talent.
“One of the biggest myths about the music industry in the digital age is that artists no longer need record labels. It is simply wrong. The investment, partnership and support that help build artist careers have never been more important than they are today. This report aims to explain why. Investing in Music is about how the music business works. It explains the value that music companies add, helping artists to realise a talent that would typically go unrecognised and get to an audience they would otherwise not reach.
“Much of the value added by music companies is invisible to the outside world. Yet it is the investment and advice from labels that enable an artist to build a career in music and which, in turn, creates a beneficial ripple effect throughout the wider music sector.”
High levels of investment
It is estimated that the recorded music industry spends around 30% of its total revenues – around US$5 billion a year - discovering, developing and promoting talent. Of that, a global average of 16% is spent on A&R, with a higher than average level in certain countries such as the UK (where A&R investment totalled 23% in 2007).
Global music industry investment in A&R is considerably higher than similar investments in other industries. In the UK, the pharmaceutical and biotechnology industry, widely acknowledged as a leader in research and development, invests 15% of its gross revenues in R&D (BIS R&D Scoreboard, 2008).
A&R spending today, however, is under greater pressure than ever from the impact of illegal file-sharing and other forms of piracy. In France, industry data shows record companies invested 12% of their turnover in marketing artists in 2009, a proportion that fell from 15% in 2006, at a time of reduced revenues which have been largely attributed to illegal file-sharing.
How the investment breaks down
Investing in Music outlines the very substantial investments involved in developing and marketing successful artists. In the UK and US, it is estimated that it typically costs more than US$1 million to break a pop artist. This is spread across an advance paid to the artist, recording costs, video production, tour support and promotional work. A typical example of the breakdown of the costs of breaking a new pop act in major markets is as below:
Advance..................................US$200,000
Recording................................US$200,000
3 videos...................................US$200,000
Tour support............................US$100,000
Promotion/marketing...............US$300,000
TOTAL................................US$1,000,000
Payment of an advance to the artist. Such an advance allows an artist to give up their day job and concentrate on writing, rehearsing, recording and performing music. Advances are recoupable from an artist’s sales, but are not recouped if those sales do not reach certain levels, leaving the record company bearing the risk of investment. A typical advance paid to a new pop act in major markets is US$200,000, but often will be higher. Advances for an established “superstar” act will commonly be in excess of US$1 million.
Financing of recording costs. Costs could be over US$200,000 for a new artist to record an album, though employing a top producer can drive this above US$50,000 per track. Hiring large numbers of session musicians or an orchestra can also drive up the budget. In this way, investment in recordings benefits a wide community of musicians and technicians.
Production of videos. Video costs can also range widely. Some of the most expensive ever produced involved days of filming and editing, costing around $1 million. A typical cost for filming videos to promote a new artist’s album is around US$200,000.
Tour support. New artists in particular need to be heavily supported by record companies. The level of tour support required is highly dependent on the nature of the artist. Tour support would typically cost around US$100,000 for a new artist in one market.
Marketing and promotion. These are often the biggest budget items for a record label taking an act to the public. Labels invest heavily in marketing and promoting artists to a broad audience. Such promotion builds the brand identity from which artists can then earn money from numerous sources, such as live touring or merchandise. A typical investment in marketing and promoting a new act is US$300,000.
Royalty payments. Payment of royalties is usually based on a percentage of revenues, licensed or synchronised income revenue streams. Teams in music companies are responsible for collecting and distributing royalties to the featured performers, producers and copyright owners.
The virtuous “circle of investment”
Recording contracts typically commit artists and labels to work together to produce a series of albums. Artists benefit from heavy upfront investment that would be difficult to secure elsewhere and record labels have the opportunity to recoup their outlay over a period of time.
Achieving commercial hits is the basis of the “circle of investment”, by which music companies plough back the revenues generated by successful campaigns to develop new talent and help fund the next generation of artists.
Continually investing in new talent is a hugely risky business, as only a minority of the artists developed by music companies will be commercially successful in a highly competitive market. Estimates on the commercial success ratio of artists vary between one in five and one in ten.
The level of investment in new artists required remains high, despite the development of new distribution channels for recorded music. In fact, the fragmentation of music distribution across many different physical and digital channels has often brought extra costs to record companies that are now working with many more retail partners.
- Ends –
To order hard copies of the report please contact laura.childs@ifpi.org
Notes to editors:
About IFPI
IFPI is the organisation that promotes the interests of the international recording industry worldwide. Its membership comprises some 1,400 major and independent companies in more than 65 countries. It also has national groups in 45 countries. IFPI’s mission is to promote the value of recorded music, safeguard the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate.
#####
The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.
In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.
Contact: Jonathan Lamy Follow @LamyJ Cara Duckworth Follow @TweetCDuck Liz Kennedy Follow @LizSKennedy 202/775-0101
IFPI'S Global Recording Industry In Numbers 2013
Now available here
RIAA's Shipment Statistics Database
©2013 RIAA | Privacy Policy and Terms of Use