A2IM Applauds FCC Vote To Approve New Net Neutrality Rules

NEW YORK, Feb. 26, 2015 -- A2IM President Rich Bengloff released this statement in reaction to today's historic vote:

We thank Chairman Wheeler and the Commissioners for voting to implement aggressive Net Neutrality rules applying to lawful content, including reclassifying broadband traffic as a Title II utility to prohibit providers from favoring content distributed by the largest companies with the deepest pockets.

Of all the technological developments in recent history, the Internet represents the most potent platform for entrepreneurship the Independent music business community has ever seen. The result of today's vote to adopt new net neutrality rules means that Independents will continue to have fair access to the online marketplace. These safeguards are critical to the Independent music industry's small and medium-sized enterprises (SMEs) that depend on the distribution and monetization of intellectual property.

Historically, the Independent music sector has operated at a considerable disadvantage due to the inequities of a music marketplace structured on a hierarchical system of gatekeepers. Traditional broadcast media such as commercial terrestrial radio has been notoriously reluctant to air Independent content. Similarly, Independents could not afford the tolls required to get access to compete in the physical retail environment. Despite the clear demand for Independent music, it has been extraordinarily difficult for Independent label owners to develop productive relationships with large radio broadcast station groups, with the result being that few Independent artists have ever managed to crack the commercial dial and secure the retail space required to open the doors of commerce to create sales equal to those of non-Independent label artists.

By contrast, the internet has allowed our sector to compete on a more level playing field in reaching audiences and doing business via streaming digital services like Pandora or Spotify, or the commerce opportunities presented by online retailers such as iTunes, Amazon and others. Additionally, Independent labels have developed Direct-To-Consumer platforms on our own e-commerce and artist websites. The ability to develop these relationships directly with potential and existing customers by leveraging Internet-engendered technology has been a phenomenal development in helping to significantly lower marketing and consumer-acquisition costs.

In this regard, we are deeply encouraged that the FCC today recognized the fundamental importance of preserving a dynamic and competitive commercial environment where small and medium-sized companies can set goals and achieve them without having to ask permission from Internet service providers. With the codification of rules around an open Internet, we no longer have to worry about another set of gatekeepers determining who gets to play and at what cost or being denied full participation in the digital music marketplace.

We are also pleased with the FCC decision to apply open Internet rules only to lawful content, applications and services. This distinction is important to maintain, as it has become increasingly clear that the music sector must be free to pursue any and all available means of combating the unlawful sharing of copyrighted content. A2IM applauds the Commission on noting the important distinction between protecting Intellectual Property and maintaining an open and competitive marketplace. The FCC's new, aggressive Net Neutrality rules illustrate the role the U.S. government has in maintaining a functional commercial environment online, including taking into consideration the economically disastrous impact of piracy. As small and medium-sized enterprises (SMEs), Independent music labels simply do not have the means to engage in worldwide copyright enforcement on the Internet. The time and capital investment required for our community to monitor the web for infringement and take subsequent legal action simply does not exist.

We thank the Commissioners for their vote today, and are glad to see music fans will continue to enjoy the freedom to choose their own preferred online destinations for consuming music legally.

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ABOUT A2IM
Celebrating its 10th anniversary, A2IM is a 501(c)(6) not-for-profit trade organization headquartered in New York City representing a broad coalition of over 350 Independently-owned American music label small and medium-sized enterprises (SMEs). The organization represents Independents' interest in the marketplace, in the media, on Capitol Hill, and as part of the global music community, as well as, supports a key segment of America's creative class and the small business community that represents America's cultural and musical genre diversity. Billboard Magazine, using Nielsen SoundScan data, identified the Independent music label sector as 35.1 percent of the music industry's U.S. recorded music sales market in 2014 based on copyright ownership, making Independent labels collectively the largest music industry segment.

The organization's board of directors are composed of the following: Razor & Tie President Craig Balsam, Concord Music Group President Glen Barros, Secretly Label Group Head of Domestic Sales & Marketing Cathy Bauer, Smithsonian Folkways Director of Marketing & Sales Richard Burgess, Epitaph/Anti- General Manager Dave Hansen, Hopeless Records Owner Louis Posen, Dualtone Music Group CEO/Co-Founder Scott Robinson, Kill Rock Stars Owner/President Portia Sabin, Glassnote Records General Manager Chris Scully, Ole SVP Digital Jim Selby and Tommy Boy Owner/CEO Thomas Silverman. A2IM's president's advisory committee is Loma Vista Recordings Label Manager Josh Berman, Mack Avenue Records President Denny Stilwell and Compass Records Group Co-Founder Garry West. A2IM's Worldwide Independent Network lead representative is Wind-up Records General Manager Alan Galbraith.

For more information on A2IM, please visit a2im.org