subprime royalty rates

Ari Shohat, in a comment on the TechCrunch article on the sorry state of streaming music:

I call the state of things now “Subprime Royalty Rates”. By that I mean that we have a few ventures/startups that are willing to pay the outrageous fees NOW, for the sake of living on another few months or years, even though common sense tells everyone that the rates are totally unworkable to a business model.

Subprime Royalty rates because just like with all the house buyers who thought they could take on overpriced house rates in the bubble, we have a bubble of royalty prices which a few are perpetuating with venture funds. Eventually this house of cards will fall too, just because they pay them now doesn’t mean that’s how economics will play out.


See also: Cait comment here about Last.fm::

My understanding, and it’s certainly the impression given by Lsast itself, is that CBS is not interfering in the day to day business of Lasat. Ultimately, they were independent for as long as they really could be, and nowthey need to rationalise their business model.

Speaking as a long (and I mean looooong) term subscriber to Last, and to Flickr, and other really brilliant and wonderful things that I love and wish to support with my hard earned wages, I don’t have a lot of sympathy for users who want it all to remain free.

I realise this is not a particularly fsahionable opinion , but you know. Get real, you freeloadaing idiots! (Heh).

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