Webcasters and Record Industry Both Appeal Royalty Ruling

jonesvery writes: "Both Webcasters and record companies are appealing the proposed royalty structure suggested by an arbitration panel, according to this LA Times story. It should surprise no one that the Webcasters feel that the proposed royalties are absurdly high, while the record companies wants them to be higher -- at levels set in independent deals negotiated between the RIAA and a couple of dozen companies. The fact that many of the companies that made these independent deals with the RIAA couldn't make enough money to both pay the royalties and stay in business doesn't seem to worry the record companies much. Funny, that..." We did an earlier story about the royalty ruling. The internet radio community seems to be just a bit upset about the whole thing.

Comments

enforcement

[asv108]

The fees under protest by both parties are:

The fee is $1.40 per thousand listeners for Internet-only stations, and 70 cents per thousand listeners for over-the-air stations that simultaneously broadcast online.

How would the record companies enforce such a payment structure? It seems to me that would be no method of counting the listeners that couldn't possibly be altered by the webcasters especially with all the different webcasting programs out there. Does anyone have a clue how the Record Companies were planning to accurately count listeners?

Re:enforcement

[ShaunC]

>Does anyone have a clue how the Record Companies were planning to accurately
>count listeners?

Probably by purchasing legislation which mandates that every personal computer in the free world can run only hardware and software designed/purchased/approved by the record cartels. With that amount of control, figuring out how many people are listening to which internet radio station doesn't seem such a daunting task...

Shaun

Re:enforcement

[Trekologer]

The earlier story linked to this page which lists what the radio stations would have to report to the RIAA, under these proposed rules. The record companies aren't planning on counting listeners. They are hoping that the radio companies won't be able to jump through these hoops just for the opportunity to pay the royalties in the first place. The goal is to kill Internet radio on their path to put the digital music "toothpase" back into the tube.

The RIAA is shooting themselves in the foot.

[PhantomHarlock]

This will be the end of such wonderful music resources like Groove Salad and Digitally Imported. These two stations are largely responsible for me purchasing any CD's at all last year. I don't like any of the ultra-narrowband content being shoved down commercial radio, I don't listen to it. The only music I purchase comes from college radio and netcasts.

Instead of allowing natural forces to broaden everyone's musical horizons, the RIAA is stifling it back to the 20th century model. If they keep being sucessful in court, the only way to fight them will be to turn music into a grass roots listener supported movement. This can only be done by enabling good musicians to run their own businesses to support themselves. This means being internet-savvy and moving away from standard CD-distribution. It means not signing the deal with the devil and trying to make it on your own with live performances and micropayment downloads.

Sites that facilitate this could act much like record lables in the promotional aspect - they would serve only to group together musicians of common genre. Instead of taking most of the artists' revenues away, they can charge a low, flat listing fee for each artist per month, which in quantity could still be quite profitable for the wise entrepreneur.

It comes down to the fact that 90% of everything is STILL crap, and only the top 10% of musicians will make any real money at it. But it will still be 100X more than what the current RIAA model allows. It will be the breadth of availability, not the quantity of each genre, which will improve.

When art combines with money, it can be a bad thing if not done right. When it is done right, it's a pleasure to make a living doing what you love.

--Mike

Webcasting Royalties?

[Synchis]

I'm not sure about other wedcasters, these are just my opinions.

The very idea of having to pay royalties for the songs I play through a web cast is outrageous. I run a shoutcast from my computer, the playlist is managed by my girlfriend. The bitrate is set much lower than cd quality, and is really mostly for her and her friends enjoyment. The thought that the RIAA wants to charge me for broadcasting sub-standard quality music that one could record just as easily from a radio, is absurd. Radio stations broadcast music for several reasons:

1. entertainment. This I would rank as the primary focus of radio stations... people want to be entertained, and the less it costs them, the better.

2. To promote the artists. Lets face it, without radio stations and music video channels, most people would never buy the albums from the local music store. We hear a song that we like, find out who its by, and buy the album. I don't believe I have ever heard of somebody going into a music store and picking a random album and buying it because they thought it looked interesting. The music industry just doesn't work that way.

Why should I have to pay the music industry to entertain there fans, and to promote there music? When was the last time you heard ANY company complain about free advertising?

I could see the headlines now: "Microsoft Sues small-town software company for promoting microsoft software." This doesn't make sense, and neither does royalties on webcasts. Forcing webcasters to pay a royalty on a webcast is like making them pay the RIAA to promote the RIAA's product.

There is no piracy involved in this. There is no music bootlegging, or recording and any such thing. If the webcast listeners want to record and distribute illegal copy's of 24kbs, 22.05kHz, Mono music, by all means, let them. But do not make the webcasters pay for this. We want to entertain, and we want to promote our favourite artists. This is all, and the only fee we should have to pay, is the fee to obtain legal copy's of the music to begin with. This would merely involve taking a trip to our local music store, and purchasing a copy of the artists album.

Re:Compulsary licensing

[Waffle Iron]

Communist slime like you shouldn't be allowed to post on slashdot. If record companies have a monopoly then it's only because they have run their business better than everyone else.

Yeah, business is business. Any attempt at outside interference is communism. Hmm... wait a minute. What would the record companies be worth if the government wasn't granting little 95-year feifdoms over each sound recording? They'd be worth JACK SHIT.

The recording companies are a product of government fiat. On what grounds does the government grant these copyrights? To "promote useful arts and sciences". They're regulating what I can and can't do to help out a certain class of people. Sounds kind of socialist to me.

Here's an idea...

[JoeShmoe]

What exactly has been done to define "webcasting?" The very term seems completely outdated. No one uses the "web" (HTTP) to deliver music any more. So what is the difference between webcasting and standard radio? Let's examine.

Is it having a web page? Of course not. Regular radio stations have web pages, same as webcasters. So clearly the web page itself is not the key factor.

Is it being digital? I don't think so. Consider the new XM satellite radio systems as well as small regionalized experiments with digital radio transmissions. Yet these would seem to be considered closer to tranitional radio than webcasting.

Is it being interactive? This is a big issue for the record companies...but how much control is required before something is interactive? Almost every radio station lets you e-mail song requests. So then, if a "webcaster" used the same mechanism, and disable any form of direct control, wouldn't they fall under the same category as radio stations?

Is it the content delivery mechanism? Consider the hypothetical situation where my computer has an FM radio card. Clicking on a link tunes my radio card to a radio station playing the song I want. Now I'm doing something interactive, web-based, and on-demand...everything that would seem to point to it being a webcaster, but since the music is coming in over standard radio waves, is it?

All of this brings me to my idea...let's grow 802.11 wireless networks specifically for broadcasting music. We aren't webcasting, it's radio wave transmission...same as regular radio stations. The 802.11 spectrum is licensed by the FCC, same as regular radio station.

Then once we are all broadcasting music via radio waves in our localized region, let's join the NAB and pay the same low royalties as regular radio stations. Could they stop us? What could they use to draw a distinction between one form of radio wave carrying music and another?

- JoeShmoe

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