Now, I am all for paying artists a fair share. The payment to broadcast a song on XM radio is for a one-time playback. This device clearly circumvents that, allowing users to listen to a broadcast song multiple times. XM is even encouraging its users to download songs and create a personal catalog of music -- so there is something wrong and there does need to be additional compensation. But $150,000 per song per customer?
More like $6-$9 - the cost of buying the single from a record store. Heck, $.99 from iTunes? XM is expected to settle the case by paying the RIAA a set amount every time a device is sold, so there is no way that $150K number ever gets used...but it still bugs me. Who can possibly justify $150K of lost profit per song? I'm not going to spend $150K over my lifetime on CDs, downloads, concerts, posters, etc. I can justify the $100,000-per-stitch of personal injury lawsuits better than this crazy talk.
Good case, bad math.
Indexed by tags Suedo Apmuza, XM, RIAA, Lawsuit