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Could Litigation And Regulation Kill Music 2.0?

  • RIAA lawsuits are increasingly targeting college students and turning a generation of music consumers into enemies and outlaws.
  • ASCAP thinks a download constitutes a performance and wants payment for both mechanical and performance royalties.
  • Internet radio which already pays higher royalties than AM/FM broadcasters has been hit with new royalty rates that could put most of them - and all of the music discovery engines like Pandora - out of business.

Future_of_music The list goes on and on... 

Could litigation and regulation kill the new music business?  Maybe not.  But just when new ways of doing business are beginning to show concrete results and profits to offset declining CD sales lawsuits, excessive royalties, lawsuits plus dated or excessive regulations will dramatically slow its growth.

Far worse is the fact that litigation and regulation is driving the true fan - the core consumer that starts most trends -  so far underground that the industry can never monetize their love of music.  That thought should strike fear in us all.