The Recording Industry Association of America (RIAA) is due for significant budget cuts as the major labels backing it will reduce costs and cut down on initiating file-sharing lawsuits, say industry insiders according to a Friday CNET report. Earlier today, it was announced RIAA will stop its years-old practice of suing individuals for sharing pirated music and other copyrighted materials. With this move, the RIAA's role will be largely reduced, and insiders believe the budget cuts will be announced at the Association's upcoming annual budget review.

Because of growing digital music sales, the RIAA is already expected to cut its budget, as its role of encouraging listeners to buy instead of steal music has become less significant. A source indicates one of the top four labels behind RIAA is adamant about decreasing its contribution to the organization. Despite the likely cuts, RIAA is expected to continue working with its long list of music, movie and artist labels. It has a presence in Congress, where it lobbies on behalf of the music industry and artists' intellectual property rights.