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RIAA to shed more staff in "bloodbath"

updated 11:30 am EST, Mon March 2, 2009

RIAA staff cuts deepen

The recent budget cuts that have the Recording Industry Association of America (RIAA) cutting its staff are more pronounced than initially expected, says a Friday Hypebot report. Due to an increased number of people purchasing digital songs online, the RIAA's role of suing individuals for illegal file sharing is reduced, with the music labels that fund the organization cutting the budget significantly.

The source says more than 100 people employed at RIAA in the US and across the world will be relieved of duty, calling it a "bloodbath." Employees who specialize in anti-piracy will be let go, while the IFPI and BPI offices will be coordinated. EMI and Universal chiefs Guy Hands and Doug Morris, both major sponsors of the RIAA, are named as largely responsible for the cuts, disclosed after proposed ISP monitoring has fallen through in the US.

The DC-based offices will be closed, with one part of the floor retained just to save the company's address. The unnamed source maintains an official announcement regarding the budget cuts by RIAA is expected to be made by early next week.

What will remain to help music labels fight piracy, the source says, is an aggregate of London-based International Federation of the Phonographic Industry (IFPI), the leftovers of Britain's BPI (once known as the British Phonographic Industry) and the RIAA.

By Electronista Staff
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  1. loudpedal

    Forum Regular

    Joined: Oct 1999



    Couldn't happen to a nicer organization.

  1. hayesk

    Professional Poster

    Joined: Sep 1999



    Laying off 100 employees is a "bloodbath"?

    I used to work for a company that would lay off thousands in an afternoon.

  1. noibs

    Fresh-Faced Recruit

    Joined: Jul 2007




    This is so sad....NOT!!!

  1. stainboy

    Fresh-Faced Recruit

    Joined: Sep 2005


    it's too bad...

    i'm not going to celebrate people getting laid off; that's not a good thing.

    however i do hope they are able to find jobs with organizations that aren't as despicable as the RIAA.

  1. testudo

    Forum Regular

    Joined: Aug 2001



    Due to an increased number of people purchasing digital songs online, the RIAA's role of suing individuals for illegal file sharing is reduced,

    There's a stretch. "More people are buying digital music, so we don't need to sue file sharers as much".

    Isn't it more like "Every attempt we've made to attack file sharers has been met with hostility, venom, and pure hatred, and, oh yeah, any time someone hasn't rolled over and played dead, we've had our asses handed to us in court. Ergo, we're killing that part of the association."

  1. testudo

    Forum Regular

    Joined: Aug 2001



    I sure hope these issues don't cause the labels to 'forget' to pay the artists their 3 cents on the dollar taken in.

  1. JulesLt

    Fresh-Faced Recruit

    Joined: Jul 2005



    Testudo - to get all Wikipedia, please cite your sources. Unless you have a particularly poor lawyer / manager you should be getting at least 12% from combined mechanicals/publishing.

    Yes, I know that still sounds way low, but bear in mind that an artist on an indie will be on something closer to a 50/50 deal . . . on relatively low sales. A Madonna/U2/Jackson league artist will also have a deal weighed in their favour (historically they were known as prestige artists - they didn't make much profit but they helped with the prestige of the label, back when labels competed to sign artists).

    The whole reason that someone can get you to sign away over 85% of your income is because they claim they're going to deliver millions, not thousands, of sales.

    This is pretty much the same way any business works - Walmart demand you sell to them at practically cost price because they will give you volume.

    And if you think that's bad, just wait until you see what replaces it, as recording becomes a promotional cost - the people who can deliver 'Top 10' success are still going to take big cuts. Consider something like the X-Factor as model for the type of business replacing the old model.

  1. nativeNYer

    Fresh-Faced Recruit

    Joined: Apr 2005



    While I hate to hear about anyone being laid off these days, I hope these folks see this as some kind of karmic justice for working for such a vile organization as the RIAA.
    Do something better with your lives than working for a greedy org that sues everyone in its sights and treats e even its paying customers as criminals. Maybe you'll do better next time.

    Not saying all corps aren't evil in their own way, but the RIAA holds a special evilness rank if you ask me.

  1. WiseWeasel

    Junior Member

    Joined: Apr 1999



    Let's hear you squeal!

  1. bigpoppa206

    Fresh-Faced Recruit

    Joined: Jun 2003


    nativeNYer, might as well

    be naiveNYer. If you think the RIAA's only function was suing file sharers then maybe it's time you did a little research. There are many musicians who support them, but not because of the file sharing suits.

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