The RIAA has decided to change it's 30-day rule due to changes in the industry.
Jay-Z has been talking about making "new rules" in the industry recently, and now it seems like the industry is following suit. After previously denying Jay of platinum status, due to his albums being sold to Samsung digitally over 30 days prior to its release, the RIAA has made an official statement indicating that they will be changing the rules for the release.
The RIAA states that the way music is being sold is changing drastically, and they feel the rules must progress as distribution does. This means that Jay's album will officially qualify for platinum satus upon its release.Â However, as of the currentÂ Neilsen SoundScan rules, the sales will not qualify for the Billboard charts.
Read the full statement below.
By now, many of us in the music business, as well as Jay-Z fans, know that Samsung has purchased one million âMagna Carta Holy Grailâ digital albums to be given away to the phone makerâs customers. It is a novel and creative marketing move and it has rightly stimulated a healthy conversation about the saleâs meaning and implications for the modern music business.
For us, the move prompted a re-examination of our historic Gold & Platinum (G&P) Program award rules. As we dug through the records of audits, re-reviewed rules and consulted with our auditing firm of more than thirty years, Gelfand, Rennert & Feldman, we discovered one rule disparity that no longer makes sense.
One of our programâs requirements is that an album can become eligible for certification 30 days after release date. (There are other rules, of course â such as requiring that the price of the album meet certain requirements.) The 30-day rule exists to take into account potential returns of physical product â CDs, cassettes, vinyl, etc. that could be shipped to brick and mortar retailers and returned, in which case our auditors do not count the sales.
Also at the time in 2004, sales of digital albums were virtually non-existent and accounted for a small fraction of overall digital sales. Fast forward a decade and thatâs obviously no longer the case.
We think itâs time for the RIAA â and Gelfand, Rennert & Feldman â to align our digital song and album certification requirements. Thatâs why today we are officially updating this rule in our G&P Program requirements. Going forward, sales of albums in digital format will become eligible on the release date, while sales of albums in physical format will still become eligible for certification 30 days after the release date.
Not only do we believe itâs sensible and logical to align digital album rules with those we have maintained for digital singles since the programâs inception, we also consider todayâs move in line with our larger efforts to modernize the G&P Program to reflect the new music marketplace. In May we announced the integration of on-demand streams to the program to more broadly recognize online demand for songs.
The reality is that how fans consume music is changing, the music business is changing as labels and artists partner with a breathtaking array of new technology services, and the industryâs premier award recognizing artistsâ commercial achievement should similarly keep pace. In short, weâre continuing to move the 55-year-old program forward and itâs a good day when music sales diversification and innovative strategies meet the RIAAâs time-tested, gold standard requisites for certification.