There have been a lot of good posts on this thread.
After reading the article, my initial reaction was: this is just the greedy recording labels trying to line their pockets (by lining the pockets of politicians in Washington, DC).
I've changed my mind. As a few "insiders" have pointed out, this is more about secondary contributors to a song or video receiving just payment for their effort.
Apparently, a workable system has been cobbled together for content that is physically sold (Sheet Music, Music Books, CDs, DVDs, etc.), performed (Jukebox, Concert) or electronically broadcast (TV, Radio).
A while back, I analyzed who got what from each iTunes song sale. I am too lazy to look it up, but it went something like:
$.90 Record Label
$.09 Apple
For its 10% Apple, provided the store, hosting, the network (bandwidth, servers, physical plant) some marketing, transaction processing, credit card processing, distribution (downloads) and support. It was estimated that Apple's profit was a [roughly] break-even $.02 on the dollar-- and that Apple was happy with this, as their real goal (and profit) was selling iPods,
I understood that from its $.90 the Record Label payed all the artists and contributors (composers, lyricists, etc.). The performing Artist's (group) portion was roughly $.10 on the dollar and the other contributors paid lesser amounts.
Apparently, this is not always true because legacy contracts, agreements, laws did not take into consideration digital distribution.
So, I assume, here, when not specifically covered, the Record Labels (publishers, whatever) decide in their own self-interest, take care of the main artist, and keep the money that should go to other contributors.
Hence, the dissatisfaction of the other contributors and the lobbying/legal action.
If this is an approximately correct definition of the current situation, then the issue is not really with Apple, but the Record Labels (whatever).
Well, we are now in the "Electronic Age" with capability for digital markets and massive databases of content, shareholder records, and transactions.
Companies like IBM can pay you a miniscule quarterly dividend for 1 share of stock-- say, a check for $.34.
Why can't a digital system be devised that markets, sells, and distributes content; and at the same time remunerates contributors according to their due?
I, Apple, or someone could certainly write the "programs" to do this.
So, given a blank slate, how should it work?
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