Audio Video News

The music-industry trade groups that have launched mass lawsuits against consumers may be about to become three-legged stools. EMI, of the four largest music labels, may be moving to cut its funding for the Recording Industry Association of America and its British cousin, the International Federation of the Phonographic Industry.

Reuters reported last November that the music giant, recently acquired by a private equity group, was looking for ways to reduce what it pays the trade associations. Then, a week ago, Variety reported that EMI "has made the first step to exit...IFPI," that "all four major labels are in talks with IFPI about altering its course," and that the IFPI and RIAA may be merged to cut costs. One major cost to both groups: the process of dragging consumers into court en masse. RIAA alone has filed more than 30,000 copyright infringement suits.

Finally, IFPI confirmed to ArsTechnica that it's in the midst of an internal review. Ars quoted IFPI: "That review will include a look at the 'structure and operation of the organisation and its relationship with the national groups, with a view to finding greater efficiencies and cutting costs,' we're told. That leaves open the possibility that the review could lead to a merger of the IFPI and RIAA, which is the largest (and most expensive) of the 'national groups.' If that happens, the 'RIAA' might disappear even as its work continues."

Whether that work will continue to include the money pit of copyright litigation remains to be seen. But it is now becoming clear that declining CD sales are finally forcing the music industry to contemplating doing business in a different way, whether it wants to or not.