Tension grows between labels and digital radio

Found on ZDnet on Saturday, 14 January 2006
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The entry of satellite and digital radio into the technological mainstream is increasing tension with the record industry, which wants new rules governing how consumers can make digital copies of songs from the airwaves.

At issue are new devices that can record and save high-quality digital copies of tunes as they're being broadcast by these new networks. Recording executives are worried that consumers might increasingly opt to make such copies instead of purchasing the music on a commercial CD or from a download store like Apple Computer's iTunes.

Congress has historically come down on the side of the broadcasters in this debate, saying that radio stations can play whatever music they want while paying only a relatively small amount of money to songwriters and publishers for the right to "perform" the song on-air--and not paying record companies at all.

"Our concern remains that this is an effort to stifle technology before it has a chance to grow," said Consumer Electronics Association spokesman Jeff Joseph. "It has never been illegal to record a song off the radio in the context of fair use."

What's the problem now for the music industry? Are too many people moving away from Kazaa and use web/satellite radio? I guess fair use is ok for them as long as you can only have bad quality. Well, they would love to regulate and limit everything, but there have to be some concessions for historical reasons I guess.