Ask the Honcho of Internet Radio's SomaFM

This week, Rusty, the general manager of Internet Radio's SomaFM, is the subject of the Slashdot Interview Spotlight. Some of you may remember Rusty from a recent Salon interview. Now he's making himself available to Slashdot and I'm sure you all can figure out a few questions to ask that weren't covered before. I'm sure many of you have questions about CARP, the future of Internet Radio, and the technology behind it. So let's get to it! As usual, we'll send off the 10 highest moderated questions on to Rusty, and we hope to have the answers for you sometime next week. <PLUG TYPE=SHAMELESS>BTW - If you haven't checked out the streams available at SomaFM, give it a try. Taste the Groove Salad, and the other 8 commercial free streams available on SomaFM. Ah, if only normal FM radio could be this good!</PLUG>

Comments

how much does the recording industry really care?

[Laplace]

I was curious to know how much the recording industry cares about small stations. Do you think that the Recording Industry Association of America is going to come after these tiny internet broadcasters, some of which are run out of someone's bedroom, and actually try to enforce this legislation? Given the bandwidth small stations operate on, their lack of mainstream exposure, and the tiny bang for the (litigious) buck, it seems that the record industry can spend their resources elsewhere with greater effect.

Thoughts about Digital Rights Management?

[SPYvSPY]

Given the availability of programs like streamripper (and others like it, I guess), do you have any plans to accomodate the myriad of digital rights management schemes in the pipeline? Which, if any, do you support or intend to implement? Do you think that you have an obligation to do so?

BTW, keep up the good work. I can say with total sincerity that your stations have introduced me music that I would otherwise never have heard. I thank you, (and so does my iPod). ;)

Pirate Mythology

[tcd004]

Right now Internet Radio enjoys a sort of "pirate" image, which I think endears it to many people because they feel like they're supporting independent media.

However, my guess is that as it grows and becomes more profitable, most Internet radio is bound to end up owned by 2-5 big players, as is the case with most other media. Do you expect internet radio to get bought up like the movie studios, local TV stations and radio stations, or do you think it will be able to stay independent?

Would mergers and consolidation ruin internet radio, or would it help it?

Thanks
tcd004

Cutting out RIAA music

[mcc]

Something that has been brought up a couple times in other threads, and that i am kind of curious about:

The CARP is something the RIAA is imposing, correct?
Does this or does this not mean that if an internet radio station were certain to only play music by non-RIAA artists, it could stay in business?
It would not be terribly easy to find material for a net radio station that only played independent music, but it would be possible, i think, and at the least i'd listen to it.
But am i just confused? Would that be feasible from a royalties standpoint? What exactly is the royalties relationship between independent record labels and internet radio, before or after CARP?

One more small question: the page on CARP on your site says that non-US broadcasters would not be subject to the CARP fees. How would this work out? Would this just mean that anyone in Canada would be able to netcast worldwide without having to pay any fees other than the ones imposed by their government? Or would stations outside the U.S. be barred from netcasting to U.S. citizens? If stations outside the U.S. are allowed to run free, what would the regulations say about a server in the U.S. that is just repeating what is being broadcast by an internet streaming radio station located outside the U.S.-- so that the lag created by the internet links that go across the atlantic ocean are minimized. Could a repeater of this sort be classified as just another router, or would the repeater be subject to the CARP payments?

Thanks for clarifying things.. just curious. Hopefully, the LoC will see through this blatant attempt by the RIAA to silence internet radio and none of the above questions will ever become an issue. I wish you luck..

Re:What am I missing?

[Otter]

Answering my own question:
Reading a little more on this, I found a link to this NYT article, which is a lot more persuasive for being a lot less alarmist and greedy than most of the IP-related stuff that gets linked around here:

In a 1998 copyright law, Congress gave Webcasters an automatic license to stream copyrighted music so long as they paid a royalty fee to be agreed on later. Like broadcast radio stations, Webcasters already pay about 4 percent of their revenue to compensate composers and music publishers. But American broadcasters have never paid a royalty for using sound recordings, which are typically owned by a record label, successfully arguing that record labels are already compensated by the promotional benefits of having their music played over the air.

Webcasters argue that the recording industry should recognize that it derives a similar benefit from music that is streamed over the Internet. In an arbitration panel proceeding supervised by the copyright office, the Webcasters proposed a royalty rate about equal to those paid to composers and publishers, 5 percent of revenue. The recording industry asked for 15 percent of revenue, or a comparable per-performance fee.

In February, the arbitration panel proposed a formula of 0.0014 cent per song, per listener. Conventional broadcasters who stream simultaneously on the Internet would pay half that rate. The rate falls between what the two sides asked for. But because there is no option to pay a percentage of revenue, and because so few Webcasters are making money on advertising, it works out in some cases to far more than a station's total revenue.

OK, that makes a lot more sense. Editors and submitters -- you'd make better advocates by linking to something like this instead of to rabid, partisan pieces like the CARP link in this story.

Royalties loophole?

[Dan Crash]

The statutory royalty rate for Internet simulcasts of FM radio broadcasts is only half that of Internet-only broadcasts. So couldn't any web station cut their royalties in half by spending $34.95 (plus shipping) to buy a micro-FM transmitter?

Here's what the law says in Title 17, 114. Scope of exclusive rights in sound recordings:

The performance of a sound recording publicly by means of a digital audio transmission, other than as a part of an interactive service, is not an infringement of section 106(6) if the performance is part of ...a nonsubscription broadcast transmission.

It doesn't require you to be a licensed or noncommercial broadcaster, simply that your performance is broadcast freely over the airwaves.

Has the webcasting industry looked into this loophole at all? Seems to me that cutting your operating expenses roughly in half could be the difference between economic life and death for most companies.

Disclaimer: I am not a lawyer (thank God!), but I am a pirate radio broadcaster.

Fraunhofer, and OGG Vorbis

[E1ven]

What amount do you currently pay in MP3 liscensing, in order to stream SomaFM over the internet?

With all the threats and attacks to MP3 streaming by Fraunhofer, have you considered moving to streaming OGG Vorbis files?

As Winamp is now shipping with native support, this could be a good way of shaving down some of the fees regarding your business.