Report: EMI To Cut Funding For RIAA, Trade Groups
November 29, 2007 at 10:57 AM (PT)
There may be a new crack in the armor of the music industry, as REUTERS reports that British conglomerate EMI wants to "substantially" reduce the amount of money it provides to the industry's trade bodies such as the RIAA and IFPI. Doing so could make it more financially difficult for the trade lobbies to continue their battle against music piracy.
The story reports that the IFPI estimated that the four majors give approximately 64 million pounds ($132.1 million) annually to itself, the RIAA and other associations.
EMI's move may have more to do with the fact that is was recently acquired by TERRA FIRMA for $4.95 billion, and the new owner undertaking "a strategic review" that, among other things, would find ways to cut expenses. Nevertheless, the story quotes a UBS source that predicted that "any move to reduce the funding to trade bodies could hamper the industry's efforts to fight piracy and protect music copyright."
Predictably, pro-P2P websites are treating this report as a victory in their battle against the RIAA's litigation campaign against illegal file sharers.