SoundExchange: Imaginary Arithmetic

Tuesday, July 17, 2007 12:02 EDT -04:00   Announcements  


June 26th boasted the launch of a Day of Silence imposed by internet radio broadcasters as a protest against the increase in royalty rates. Strengthening their numbers, a number of fervent supporters (including entertainment lawyer, Fred Wilhelms) have been working towards exposing the fraudulent side of the corporate music industry and its supporters.

Richard Ades, yet another over-paid spokesman for SoundExchange i.e. master spinner of un-truths, has countered the opposition with a free lesson in Imaginary Arithmetic. Retorting to the Internet Radio Day of Silence,Mr. Ades was quoted by Technology Daily as saying, “The bill on the hill would not only vacate CBR decision but would cut rates by 75 percent from what the old rate was. That’s their idea of fairness to artists? That’s an insult.” What’s really an insult is that even after spending $1 billion in administrative fees, SoundExchange can’t afford to hire an accountant (or an 8th-grade Math student) who could help them get their statistics right. Or maybe they’re just going with the “all humans are sheep” theory and hoping no one notices. Bad luck! The percentage-of-revenue royalty rate called for in H.R. 2060 is 7.5%. If Mr. Ades is correct about that being a 75% cut from the old rate, the old rate would have to be 30% (a seventy-five percent reduction from a 30% rate results in a 7.5% rate). But there’s a slight problem here: the old rate was never 30%. It was 10.9%.

So, in theory, Mr. Ades was off by a mere 275%. That’s not so bad. We can give him props for defeating John Simpson at the math game, who’s proclamations about Internet Radio having $500 million in advertising revenue were only about a 1000% off. It’s an improvement that lands a SoundExchange spokesman in nearly the same time-zone as reality. But, even with this progress, we’re about 100% tired of SoundExchange’s utter disdain for both the truth and public opinion and their disregard for the artist’s whose cause they claim to be championing.

Today’s lesson: If SoundExchange had been the organization behind the SAT back when I gave it, I’m pretty sure I could’ve landed a perfect score on the math section.

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  • RIAA bailout radio tax approved
  • The last of the dinosaurs


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