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Is the tide turning against the RIAA?

Two blows to the RIAA this week:

According to an unnamed source, EMI, which is home to such labels as Capitol and Virgin, is looking into “substantially” reducing its funding of trade groups, including, most notably, the RIAA and International Federation of the Phonographic Industry (IFPI). The four majors–which include EMI, Sony BMG, Universal, and Warner–are believed to contribute some $132.1 million dollars a piece annually to groups like the RIAA, according to the IFPI.
The IFPI said on Wednesday it was engaged in annual budget decisions and “as one would expect in this market, there is a focus on efficiencies and savings.”

You bet there’s an emphasis on savings – but only for those expenditures deemed wasteful.

Is that the sentiment creeping over the RIAA?

Are the labels beginning to reassess the wisdom of clinging to an outmoded business model and litigating against the very fans they need to survive?

And what does this say about EMI’s confidence in RIAA’s ability to take on the radio industry?

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