RIAA admits to losing money due to lawsuits

By Justin Mann on October 3, 2007, 11:55 AM
As the case between the RIAA, Capitol Records and one defendant continues, some interesting tidbits regarding the RIAA's tactics have come into the light. With estimates as high as 20,000 cases having been filed and the average settlement being listed at around $3,000, you'd think the RIAA would be raking in the dough.

Apparently that is not the case, and despite them going so far as to even sue innocent people (who may have settled out of intimidation) it seems that their business plan of suing anything that moves is not turning out well for them. In court they have stated that they are losing money on the deal :

The next line of questioning was how many suits the RIAA has filed so far. Pariser estimated the number at a "few thousand." "More like 20,000," suggested Toder. "That's probably an overstatement," Pariser replied. She then made perhaps the most startling comment of the day. Saying that the record labels have spent "millions" on the lawsuits, she then said that "we've lost money on this program."
It gets even better when they bring up the point of the actual amount of money lost. While they sure like to throw around figures about the “billions” it is costing them, it was admitted today that they actually have not calculated how much money they have lost, perceived or otherwise, due to pirating.

So they don't really know how much money they are losing (even though they claim it is in the billions) and their plethora of lawsuits is hitting them in the pocketbook? I find it hard to feel any pity.




User Comments: 5

Got something to say? Post a comment
PanicX said:
Its fascinating to watch the record companies stumble over and over again. Doing anything they can to stop times from changing. I can't imagine how much each of these "deny the change" en devours really costs them. You'd think with all the cash at their disposal, they could buy some sense and take advantage of the changes instead of fighting them.
phantasm66 said:
Some people have been, for some time, making a lot of money from other people's talent.That time is coming to an end.Its natural that they would seek to fight that.But the truth is that they can not.
jesse_hz said:
For long it has been good for me.Recently more of a pain for me.So I say, old media is dead to me.
Reachable said:
Lawsuits are about the only sensible thing the RIAA is doing to fight file sharing. The intimidation has got to be having an effect. I'm astonished that the article writer would be so naive as to think that the lawsuits were an attempt to make money in and of themselves. They're an attempt to not lose money via the file sharing phenomenon. The lawyers are the only ones making money from this, but it's the selected file sharers who are losing, and that's the point.Unfortunately, the record companies, the members of the RIAA, are about the only avenue the talented can use to get necessary money for their recording efforts. Anything that discourages illegal file sharing works to the artists' advantage. Unfortunately, the RIAA does very little else to help. If they lowered the price per song down to a reasonable level (say $.29 or $.39) the online music business would explode into a real golden age.
Loquacious1 said:
Yes, greed is never profitible in the long run. What puzzles is that they must prove financial damages in court to recover them. So how can they recover from greed without having totaled their losses?
Load all comments...

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.