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> There were probably hundreds of startups that built cool music tech but they all failed because they couldn't get the licenses. As far as I know the true stor
by chimeracoder 11y ago
> There were probably hundreds of startups that built cool music tech but they all failed because they couldn't get the licenses. As far as I know the true story of why the MPAA gave Spotify the green light after saying no to so many before them.
It helps that Spotify is (partly) owned by the record labels: http://www.swedishwire.com/jobs/680-record-labels-part-owner-of-spotify http://www.swedishwire.com/jobs/680-record-labels-part-owner...
It's what makes shutting down Grooveshark and going after other music services so ridiculous - it's not a matter of wanting to combat "piracy" as much as it is about wanting to make sure that their favored candidate wins, instead of an independent one.
Again, remember that the RIAA currently has authority not just over artists signed to major labels, but over artists signed to independent labels as well[0], so they really do truly have cartel-like power, and they are clearly not interested in giving that up.
[0] A subsidiary of the RIAA has the sole legal authority to collect royalties on behalf of all artists, and then artists can request remittance of payments from this subsidiary. Perhaps unsurprisingly, independent artists report mixed results with actually getting the RIAA's subsidiary[1] to pay them: https://en.wikipedia.org/wiki/SoundExchange#Authority https://en.wikipedia.org/wiki/SoundExchange#Authority
[1] Technically SoundExchange is now a 501(c)3 and no longer owned by the RIAA, to make them appear more "independent", but this is a change in name only.