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the music doomsday theroy!

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The Webcasters Settlement Act of 2009 along with high dollar music licensing fees creates a substantial barrier to entry for start ups wishing to enter the Internet music industry, forcing venture capital companies to migrate away from the Internet music space. These costs alone put downward pressure on an already saturated market meaning that there will be fewer music related start ups, fewer digital outlets to sell music and fewer opportunities to earn royalties from online resources.

Small market radio stations unable to absorb the additional costs to stream music are also affected. The addition of a broadcast performance royalty will force many stations to migrate to less expense broadcast formats such as talk, sports and news. These additional costs result in fewer radio stations playing music, fewer stations streaming music, fewer opportunities to expose new music, and fewer opportunities to earn royalties.

If the existing markets for music seems competitive now, what will it be like when the resulting music landscape consists of just a few major corporations who need to maximize profits to pay for these additional business expenses?
 
For the record, no pun intended-

About 2,700 record stores have closed across the country since 2003, according to the research group Almighty Institute of Music Retail.

Subscription services such as; Virgin, AOL/FullAudio/MusicNow and Datz Music Lounge have shut down and, Yahoo sold its subscribers to Rhapsody and shut down.

What's next?
 
Here's what's next:

Performance Rights Acts, S.379, and its House counterpart, H.R. 848, could become law if they respectively survive a floor vote in its own chamber, gets approved by the other chamber, and is eventually signed by the President. Should all those events occur, broadcasters would be required to pay copyright royalties for over-the-air performance of sound recordings.

However, the “Local Radio Freedom Act”, a nonbinding statement of opposition to the performance right embodied in H. R. 848 and S.379 was co-sponsored by all 250 members of the House and could mean that legislators want a lot more lobby money to be spent on them to sway a vote.

If you want to urge the House of Representatives and the Senate to reject H.R. 848 and S. 379. Go here: http://helpsaveradio.org/petition.php
 
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