Tuesday, August 07, 2007

Refuting Liebowitz: preface

Earlier this summer, the radio business paid a bit of attention paid to a paper written by a Stan Liebowitz. Liebowitz is a professor at the University of Texas at Dallas School of Management. Liebowitz has done lots of work on copyright issues, usually taking the side of the entertainment industry.

The paper receiving the attention is entitled The Elusive Symbiosis: The Impact of Radio on the Record Industry and it was published in March 2004. Why is just now getting attention? The music industry is gearing up to claim more royalties from traditional broadcast radio. In short, most outlets that use copyrighted music must pay royalties to both the composer and the performer. Radio, however, has only had to pay royalties to the composer. Now, the recording industry wants radio to pay both royalties, like everybody else. Radio has always felt that by playing songs, the record industry was getting free exposure to millions of people. If a listener heard a song they liked, they might be more inclined to go out and buy a recording of it. Now, the recording industry wants radio to pay both royalties, like everybody else.

Not so, claims Liebowitz. There are some in the music industry that are using his paper as ammunition in the fight to collect more royalties.

Liebowitz argues that radio listening substitutes for listening to recorded music, therefore negatively impacting music sales.

I decided to seek out his paper and actually read it. Following the link on his personal page hosted by his university, I read on the download page that the document has only been downloaded 221 times since March 2004. Really? The paper causing such a stir has only been downloaded 221 times? I'm sure it has been read more than that as people email it back and forth, but still...221 times?

One only needs to read the paper to realize that if this is the best that the music industry has, then the RIAA and their friends are truly out of their minds.

In the coming days, I will refute Liebowitz's arguments page by ridiculous page. In the meantime you can download the paper and read it for yourself.

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