Sources: RIAA budget will shrink soon

Budget cuts are likely as music industry gives up suing file sharers and continues to see losses.

The budget for the music industry's trade group, the Recording Industry Association of America, will soon shrink as the major labels reduce costs and their dependence on file-sharing lawsuits, industry insiders said Friday.

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Friday's startling news that the trade group representing the four largest music labels has declared an end to a long-running legal campaign against file sharing will mean a reduced role for the RIAA, which is coming up on its yearly budget review, according to a source close to the group.

But in a climate where digital music sales are growing, though not fast enough to make up for the losses from shrinking CD sales , the trade organization was already headed toward likely cutbacks. One source said that one of the top four labels has already begun making noise about lowering its contribution to the organization.

An RIAA representative declined to comment.

The RIAA has seen budget cuts for the past several years, and both sources said the organization isn't going anywhere. The group still lobbies Congress on behalf of the music industry and artist rights.

Now, with a less litigious agenda, perhaps the RIAA will need one or two fewer lawyers.

See also:
• RIAA drops lawsuits; ISPs to battle file sharing
• Copy of RIAA's new enforcement notice to ISPs
• Lawsuits or not, the RIAA still doesn't understand us
• RIAA president: 'No talk of blacklisting'

 

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