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Internet Radio In Danger of Extinction in United States

An anonymous reader passed us a link to a Forbes article discussing dire news for fans of Internet radio. Yesterday afternoon saw online broadcasters, everyone from giants like Clear Channel and National Public Radio to small-fry internet concerns, arguing their case before the Copyright Royalty Board (CRB). The CRB's March 2nd decision to increase the fees associated with online music broadcasting will have harsh repercussions for those who engage in the activity, the panel was told. "Under a previous arrangement, which expired at the end of 2005, broadcasters and online companies such as Yahoo Inc. and Time Warner Inc.'s AOL unit could pay royalties based on estimates of how many songs were played over a given period of time, or a 'tuning hour,' as opposed to counting every single song ... [They] also asked the judges to clarify a $500 annual fee per broadcasting channel, saying that with some online companies offering many thousands of listening options, counting each one as a separate channel could lead to huge fees for online broadcasters." There was also a previous provision for smaller companies that allowed them to pay less, something the March 2 decision did away with; in the view of the royalty holders, advertising more than pays for these fees, and they're ready for higher payments.

229 comments

  1. ditch corporate music by Anonymous Coward · · Score: 4, Insightful

    time to ditch the music that RIAA owns, and only stream stuff that people want share.

    1. Re:ditch corporate music by l0rd · · Score: 4, Insightful

      They're digging their own graves with this type of behaviour. People want freedom of choice. Thanks to P2P people get freedom of choice. If internet radio can't compete this will just stimulate even more people to download what they want to listen to.

      Because of their arrogance the music industry wil now have 0 revenue where before it could get something.

    2. Re:ditch corporate music by Rob+T+Firefly · · Score: 1

      Exactly! I hate to be the righteous bastard that's always insisting people look on the bright side, but I for one wouldn't mind all those statuions on Shoutcast or whatever becoming a haven for the countless unsigned and independent bands on the Internet.

      You'd think the industry would recognize the fact that the Internet is where more and more people are actually choosing and buying their music nowadays, and would avoid crapping on Internet-based music fans... but then again, this is the bloated and clueless mainstream music industry we're talking about.

    3. Re:ditch corporate music by smkndrkn · · Score: 4, Insightful

      Because of their arrogance the music industry wil now have 0 revenue where before it could get something.

      I wish that were true. Sadly not enough people are motivated enough to make anything near that reality possible. Plus the RIAA has their hooks in many different industries now (blank media for one). How many people do you know personally that actually say "I'm making an effort to no longer support the RIAA"? I don't know any, sadly. I think I'm the only person I know that tries to spend my money on music not controlled by them and even that is impossible to do all the time.

      While I think the steps they are taking is having an effect on the public, I don't see it killing their profits.

      --
      ======== In the future, everything will be artificial. ========
    4. Re:ditch corporate music by l0rd · · Score: 2, Interesting

      While I agree with you that people will not conciously try to avoid supporting the RIAA, they still stick it to the man every time they download an mp3 over their favourite p2p network.

      Until music is sold without DRM in mp3/flac form for reasonable prices people will continue to download and nobody will buy cds. Unfortunatley (for them) RIAA & friends dont want to sell mp3/flacs without DRM. Therefore they are digging their own graves a little more every day.

      One day even these dinosaurs will have to face reality and see that they are no longer needed in their current form and they grow less powerful everyday. Just as a meteor one day killed all the dinosaurs and made way for man, so will p2p smite the record companies and finally free the independant artist from their evil chains (please excuse the dramatism ;) )

    5. Re:ditch corporate music by evilviper · · Score: 1, Informative

      time to ditch the music that RIAA owns, and only stream stuff that people want share.

      The RIAA has very little to do with this. It's ASCAP who collect royalties.
      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
    6. Re:ditch corporate music by Tim+C · · Score: 3, Insightful

      Until music is sold without DRM in mp3/flac form for reasonable prices people will continue to download and nobody will buy cds.

      I hate to break it to you, but plenty of people are still buying CDs.

    7. Re:ditch corporate music by l0rd · · Score: 1

      True. But it's becoming tougher to sell them. Where as before (at least here in holland) a cd would cost 20 euros when it first came out, 5 years later it would still cost 20 euros. Now cds are already discounted weeks after they come out, as they should be.

      While there will probably always be some market for cds, if mp3s were sold the same way (maybe $1 when they first come out, and then 10 cents cheaper every x months) everyone would buy mp3s instead. Better still if you can offer a subscription service for let's say $10 / month. That means that normal people that usually buy a couple of cds a year now get a new one every month.

      To bad the RIAA doesn't see it that way though.

    8. Re:ditch corporate music by redsuit · · Score: 1

      Agreed. What would happen if everyone stopped buying music for awhile? (To be PC... also stop stealing it.)

    9. Re:ditch corporate music by falcon5768 · · Score: 4, Informative

      Not true, the RIAA is completely behind this. The fee that this new hike collects goes directly to the RIAA and not the performers which is what the fee's for terrestrial radio go to.

      --

      "Slashdot, where telling the truth is overrated but lying is insightful."

    10. Re:ditch corporate music by Billosaur · · Score: 2, Interesting

      David Byrne agrees with you -- he believes that thanks to the Internet, artists don't need the music labels as much anymore, which means if the RIAA wants to stick around, it better find a way to adapt to the times.

      --
      GetOuttaMySpace - The Anti-Social Network
    11. Re:ditch corporate music by ari+wins · · Score: 1

      Because of their arrogance the music industry wil now have 0 revenue where before it could get something.

      Indeed, and that's when the record companies show congress all the red ink and demand that laws be put into place to protect the future of the "arts". Likely, the politicians will grudgingly agree, as they accept the overstuffed envelope and free subscription to whatever *IAA music service is "new" at the time (meaning years behind anything innovative).

      It's a fine example of a Self-Fulfilling Prophecy.

      --
      Don't worry if you're a kleptomaniac, you can always take something for it.
    12. Re:ditch corporate music by daeg · · Score: 4, Insightful

      The nice thing about the MP3 model is it only rewards songs that are worth it. Anyone who has bought CDs knows each CD is engineered to have 2-3 good tracks and the rest as mediocre filler songs. The big songs are what they advertise and publicize via concerts, radio, movie soundtracks, etc. The filler take much less money to produce.

      If everyone is only buying the songs they like, it sends a drastic message: We won't pay for crap. Instead of an artist releasing 20 tracks a year, they could release half a dozen extremely high quality, worthwhile songs, and hopefully make the same -- or more -- revenue (since they don't need to make 11 filler tracks).

      The RIAA doesn't like that model, though. It lets tiny garage bands into the same market with a 10MB file, there's no massive production, shipping, and marketing costs required. The RIAA wants to continue deciding which bands succeed and which do not -- it is hard to convince a puppetmaster to give up puppeting.

    13. Re:ditch corporate music by l0rd · · Score: 1

      True. But people won't pay for a service that's inconvenient to use (& overpriced) when p2p makes things so easy these days. Why go to all the trouble to subscribe to a piece of shit service when you can download exactly the same (better, because it's not DRMed) quality for free?

    14. Re:ditch corporate music by Joelfabulous · · Score: 2, Insightful

      "The nice thing about the MP3 model is it only rewards songs that are worth it. Anyone who has bought CDs knows each CD is engineered to have 2-3 good tracks and the rest as mediocre filler songs. The big songs are what they advertise and publicize via concerts, radio, movie soundtracks, etc. The filler take much less money to produce."

      Yeah, but see, I won't buy *any* CD if it's crap -- RIAA or otherwise. My principle has always been to buy the CD for the whole album if it's good, never for a track or two.

      I'm not exactly old now (almost a sophomore in university), but I can still remember being puzzled a good eight years or so ago when people I knew would buy a CD costing ~$25 CAN for only a track or two. It's as if they didn't know that the recording industry uses singles for that purpose, most of the time... Not like that's a perfect solution, since I think a lot of music out there is crap, and yet... The public seems to like it anyways.

      Then again, it has its purpose I suppose... It gives Weird Al some good material, and it gives me another reason to be annoyed with the general populace. Huzzah!

      --
      Sometimes I wonder if I think too much.
    15. Re:ditch corporate music by Whyte+Panther · · Score: 1

      Maybe it's just me, but asking for more money IS a way of recognizing that the internet is becoming a more viable media for music distribution.

    16. Re:ditch corporate music by sosofo · · Score: 1

      With MTV and Clearchannel as part of the old boys network, it's hard to believe. Compare Frontlines `The way the music died and weep. Most of the hits are generated via large marketing campaigns and 50% is sold via Target, Walmart and Best-buy. The way the music industry works (and the RIAA is an integral part of that) is something different entirely than just providing a buying platform. Not that pressing CDs was that expensive. Basically it's about filtering all the music and presenting something the consumer wants. In Europe we've a nice debate about whether it ought to be allowed to mix journalistic content with advertisement. The way I understand it, this is completely commonplace in the US i.e. in recent movies. As long as you've commercial platforms that do your `content filtering you most certainly won't get rid of the money-can-buy syndrome.

    17. Re:ditch corporate music by rantingkitten · · Score: 1
      It's true. I'm the operator of an internet radio station myself, and, like most other net radio broadcasters, I play music tailored to an audience that cannot find what they're looking for with conventional radio. Synthpop and darkwave music is never going to get airtime, and outside the drunken haze of a goth club, most people will never hear it at all, meaning the arists will never get exposure... unless there are net radio stations that broadcast this type of stuff.

      The artists love it too. I've had several independant musicians send me singles and albums asking to be put into rotation. Quoth the latest:

      Thanks I appreciate the exposure, it's hard to get the music out as an independent artist which is why I'm trying to get radioplay. The CD is the mail.


      It's free exposure for them, to an audience probably already primed for the genre. The artists like it, the audience likes it (or they wouldn't be listening -- and I've had more than a few people thank me for this song or that, saying they'd never heard of this band or that). I like it because it's fun. I get permission from many of the artists or labels to play their stuff, and the ones I don't? They're either too old or obscure to track down, or I just don't care because hey. It's a freaking 96k stream that cannot be copied without a certain amount of technical ability -- certainly harder than cramming a tape into a radio deck and hitting the Record button.

      Watching the RIAA try to keep a stranglehold on their monopoly by attempting to legislate or shut down new technology is ridiculous. Like most corporate gluttons they're slow to adapt to a changing market, and by the time they get around to it (net radio's been around for, what, like ten years or more?) they take the most absurd course they possibly can.

      I'm tired of it. The artists are tired of it. The audience is tired of it and the labels are rapidly getting tired of it. We're all fucking tired of it, and the RIAA is a rusted machine quickly fading into obscolescence.

      They can try to legislate; we'll just move offshore (my server is in Germany, for example) where nobody cares. Like a good man once said, "You can't stop the signal", and I for one intend to keep broadcasting as long as possible. If the RIAA wants to complain that a stream of ebm and industrial music is cutting into the profits of their Rapper Feat. Guest Rapper crowd, that will only highlight their own myopic stupidity.
      --
      mirrorshades radio -- darkwave, industrial, futurepop, ebm.
    18. Re:ditch corporate music by Maxo-Texas · · Score: 2, Interesting

      It depends on the band.
      What you are saying is true for bands from large music companies.

      OTH, a regional band in my area named Blue October's CD's are almost like a compilation of greatest hits. Maybe it's because they are still fresh/young and have something to say. I know they love their music enough for the lead singer to come out on a broken leg to sing despite being in obvious pain.

      It's tough- I was exposed to them through copies of their music ( a friend wanted me to go to a concert so burned me a CD). Then I went to the concert (k-ching) and later bought a couple T-Shirts online (k-ching, k-ching). Without piracy, I'd have never become a fan.

      Actually i think you're right- they are more releasing quality only and not rushing to produce filler. So they are really in the mode you are suggesting we should be in.

      It's a shame for the "one hit wonders".

      I don't see any point in the huge cut RIAA takes and a trivial search reveals sites saying how with a million records sold AND a concert tour, some bands still OWE money to the industry. That's just not right. That's downright evil.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    19. Re:ditch corporate music by Anonymous Coward · · Score: 0

      But radio airplay isn't distribution, it's an ad for the artist. The station plays music, you like the music, and the artist or record label gets to sell you albums/concert tickets/t-shirts/etc as a result. Little stations that only play what they like are a threat to all this, so squeezing out the little guy with exorbitant royalties only ensures that the megaconglomerates will rule the airwaves, and the big record labels will continue to maintain a comfortable amount of control over what's "cool" this week.

    20. Re:ditch corporate music by evilviper · · Score: 1

      The fee that this new hike collects goes directly to the RIAA

      The article says nothing of the sort, and you have provided no sources to back-up your claim.
      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
    21. Re:ditch corporate music by xiong.chiamiov · · Score: 1

      Ever heard of eMusic? Granted, it's only stuff that's either really old, or on independent labels, but that's the way things should run. It was on eMusic that I discovered the Aquabats and Andrew Bird's Bowl of Fire.

    22. Re:ditch corporate music by anothy · · Score: 1

      Until music is sold without DRM in mp3/flac form for reasonable prices people will continue to download and nobody will buy cds.
      bollocks. there's plenty of places which will sell you exactly that. personally, i use (and am quite happy with) eMusic, but there's several others. you just want your stuff free.
      --

      i speak for myself and those who like what i say.
    23. Re:ditch corporate music by l0rd · · Score: 1

      I'm not talking about me, i'm talking about 99% of the buying public. Love it or hate it most people just wanna listen to the stuff they hear on MTV, not some obscure indie artist from Berlin.

      By all means, if you enjoy music support the artist. I know I do :)

    24. Re:ditch corporate music by gazil · · Score: 1

      I do buy a lot of my music directly from the artists but sadly not all. FILK music I can get from the artists or small distributors (who get a lot of it directly from the artists). Yet I grew up on broadcast popular music, and much of that comes from the big labels. I do not pirate music, so what choice do you really have to get it and be legal ?

    25. Re:ditch corporate music by zenslug · · Score: 1

      You can always try recycling your music by turning to the second-hand market:

      http://www.ebay.com/
      http://www.lala.com/

    26. Re:ditch corporate music by sgilti · · Score: 1

      How many people do you know personally that actually say "I'm making an effort to no longer support the RIAA"?

      I could swear that's what piracy was all about!

    27. Re:ditch corporate music by DrBdan · · Score: 1

      It depends on the band. What you are saying is true for bands from large music companies.

      While I agree with most of your points, I have to disagree that it's true for bands from large music companies. The quality of the music depends (almost) solely with the band. The big difference, as I see it, is that the crappy bands on large labels have the backing to be pushed so everyone hears their 1 or 2 good songs while the crappy bands on small labels are just never heard of. The only time you hear about bands from small/indie labels is when their music is good enough to make them popular on their own, thus it seems that indie bands are putting out consistently great music.

    28. Re:ditch corporate music by cayenne8 · · Score: 1
      "While there will probably always be some market for cds, if mp3s were sold the same way (maybe $1 when they first come out, and then 10 cents cheaper every x months) everyone would buy mp3s instead. "

      Not necessarily. Many of us still buy CD's because the quality of sound is greater than the lossless mp3's for sale. If they sold lossless, like flac.....then I'd be in line to buy online music, but, until then, I'll prefer to buy CD's....or listen to the odd samples I find on the lossless USENET groups out there...

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    29. Re:ditch corporate music by ari+wins · · Score: 1

      Simply put, re-read the first part of my statement. If we hit Terror Alert: Death Metal, and enough money makes it into the right pockets, there's no telling what laws could be put into effect. Removing rights/privacy from the people is good for many groups, government and commercial; though there will always be ways of obtaining media for free, I'm sure both groups would much prefer it was taken out of the hands of the masses, and relegated back to the old days of IRC servers and ftp's that make you sign up for spam. The more hoops, the better.

      --
      Don't worry if you're a kleptomaniac, you can always take something for it.
    30. Re:ditch corporate music by cayenne8 · · Score: 1
      " Love it or hate it most people just wanna listen to the stuff they hear on MTV..."

      That might have been true, about 20+ years ago, when MTV still actually played music....

      :-)

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    31. Re:ditch corporate music by miskatonic+alumnus · · Score: 1

      Anyone who has bought CDs knows each CD is engineered to have 2-3 good tracks and the rest as mediocre filler songs.

      That is a highly subjective statement. I can name over a hundred cd's where at least half of the tracks are good. I can name a dozen or so where nearly all the tracks are good. Of course, YMMV.

      We won't pay for crap. Instead of an artist releasing 20 tracks a year, they could release half a dozen extremely high quality, worthwhile songs,...

      How did this get modded insightful? Crap is in the ear of the listener. Aside from corporate whores like Britney Spears, I like to think that some (if not most) musicians/bands think of their music first and business second. They create the music for themselves. This implies that in their opinion, few or none of the tracks are crap --- they are self-expression. How could they know a priori which tunes will be hits and which ones will flop? And even if they could know, just how many stellar popular tunes does an artist/band have in them?

    32. Re:ditch corporate music by Shawn+is+an+Asshole · · Score: 1

      The nice thing about the MP3 model is it only rewards songs that are worth it. Anyone who has bought CDs knows each CD is engineered to have 2-3 good tracks and the rest as mediocre filler songs. The big songs are what they advertise and publicize via concerts, radio, movie soundtracks, etc. The filler take much less money to produce. I cannot remember the last time I bought a cd that only had 2-3 good tracks on it, and I buy a lot of them (>6/mo). Let's see some of what I've bought recently:

      Kittie - Funeral for Yesterday
      Mastodon - Blood Mountain
      Lamb of God - Sacrament
      Killswitch Engage - As Daylight Dies
      Otep - The Ascension
      Kidneytheives - Zer0space

      All of those are solid. Every song on them is worth listening to.

      For those of you who keep saying the 2-3 song thing, what type of music is it? Top 40 or similar?

      Even the cds I buy after hearing them on radio are solid. Whenever I get something I hear off of Headbanger's Ball it's solid. When I get something I hear off of Hard Attack (Sirius) it's solid.
      --
      "It ain't a war against drugs.it's a war against personal freedom" --Bill Hicks
    33. Re:ditch corporate music by Anonymous Coward · · Score: 0

      It's about time to do away with RIAA. Shut it down.

    34. Re:ditch corporate music by Anonymous Coward · · Score: 0

      I believe that the system that is in place, you must pay if you are streaming any copyrighted music. This provision was put in place I believe to alleviate the need to contact each and every copyright owner to broadcast music. I believe this affects indie music too even if the copyright owners grant you royalty-free broadcast. I could be wrong and if i can find my source for this again I'll be happy to repost.

    35. Re:ditch corporate music by Anonymous Coward · · Score: 0

      It is impossible to tract which artist is tied to which organization. As a broadcaster, I would gladly play non-riaa artists if there were means to easily identify which artists are tied to them. The problem is it's not just RIAA, it's Soundexchange, SESAC, BMI and ASCAP. Give us a way to identify which artists are licensed by an organization. Even with a search utitilty, you still have a risk as an artist can join these orgranizations after the fact so it's nightmare to try and keep track of every artist.

    36. Re:ditch corporate music by multisync · · Score: 1

      Not true, the RIAA is completely behind this. The fee that this new hike collects goes directly to the RIAA and not the performers which is what the fee's for terrestrial radio go to.


      Actually, the fee is collected by SoundExchange, and it is collected for all songs, not just those owned by RIAA-member record companies. Yes, the RIAA lobbied hard for this, but saying "ditch corporate music" will not solve this. If you record your own song, you own the copyright on that performance. If an Internet broadcaster plays your song, a royalty will be collected for it by SoundExchange. You are welcome to sign up with SoundExchange to receive compensation for the "airplay" your song received, less their fees of course.

      --
      I don't care why you're posting AC
    37. Re:ditch corporate music by Percy_Blakeney · · Score: 1

      I can't understand why your comment is highly rated; every single thing about it is wrong:

      the RIAA is completely behind this

      No, the RIAA made a proposal to the federal government, which was then mostly adopted. The RIAA has no power on its own to set the royalty rates for the blanket license.

      The fee that this new hike collects goes directly to the RIAA and not the performers

      No, the fee goes directly to SoundExchange, which then directly pays the copyright owners. The RIAA itself never sees a dime, although the recording labels themselves do.

      and not the performers which is what the fee's for terrestrial radio go to

      No, the fees that terrestrial radio pays go to the songwriters, not to the performers. There are two kinds of royalties that you can pay: for the musical composition and for the sound recording. AM/FM radio has always paid for the musical compositions, but has always had an exemption from having to pay for the sound recordings. Internet radio, though, has not been granted the same exemption, so they end up paying both royalties.

    38. Re:ditch corporate music by Zonk+(troll) · · Score: 1

      Yet I grew up on broadcast popular music, and much of that comes from the big labels. I do not pirate music, so what choice do you really have to get it and be legal ? Buy used. There are probably used cd stores near you, and they're always Amazon and Ebay.
      --
      "The Federal Reserve is a fraudulent system."--Lew Rockwell
      End The FED. -
    39. Re:ditch corporate music by Yusaku+Godai · · Score: 1

      Anyone who has bought CDs knows each CD is engineered to have 2-3 good tracks and the rest as mediocre filler songs. The big songs are what they advertise and publicize via concerts, radio, movie soundtracks, etc. The filler take much less money to produce.


      I'm so sick of hearing this argument. I don't know what music you listen to, but personally I prefer to listen to artists who put together actual *albums* that are worth listening to as a whole. It doesn't necessarily have to be the case that every single track is golden, but artists who are only capable of turning out one or two hit singles per album plus filler probably aren't worth listening to in the first place.

      This concept of downloading individual tracks is foreign to me. And when I consider that most music download sites are giving you less than CD-quality music, usually DRM'd, I remember why I still buy CDs.
    40. Re:ditch corporate music by Chuqmystr · · Score: 1

      Plus the RIAA has their hooks in many different industries now (blank media for one).

      Yeah, no shit on that. I seriously am wondering what's next, perhaps some sort of "packet tax" for lack of a better description? It would go something like this. RIAA STOOGE: "So you see, we have no way of really telling who's doing what and it's just killing our business to continue on with all of this traffic sniffing and cajoling of the ISPs, all the various law suits and what-not. Oh and what of all the money we're spending on advertising to get the word out to fellow American consumers that it's wrong to become an independent recording artist, record label and/or broadcaster as well as how wrong it is to buy their products? WRONG I TELL YOU! It is pure and simple black market practice. However I digress. Sirs, we're asking for your help in enacting legislation to put an end to our woes once and for all. We're proposing a global music bandwidth use tax..."

    41. Re:ditch corporate music by jlowery · · Score: 1

      I'm making an effort to no longer support the RIAA.

      Not a 100% effort, but an effort. Even if we all acted to reduce their revenue 20%, that's a pretty hefty ding that's gonna pinch them hard.

      --
      If you post it, they will read.
    42. Re:ditch corporate music by NulDevice · · Score: 1

      Well, crap, I've put way too much work into my next album, then. I've got 5 good songs!

      --

      ----
      "I used to listen to Null Device before they sold out."

    43. Re:ditch corporate music by Maxo-Texas · · Score: 1

      You are really so right there.

      Also a lot of "crap" by indies may be pure gold to someone. But they do not appeal to most people.

      A lot of "crap" by major lables doesn't make you want to turn off the radio-- it's just empty and pointless. Usually has a non-offensive melody with a few catchy meaningless lyrics as a hook.

      The 'mass market' really does exist and funky, wierd, offbeat, new music doesn't appeal to it.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    44. Re:ditch corporate music by l0rd · · Score: 1

      I agree with you on this. Online distribution of music can only really take off with the best possible quality. Seing as the ideal service is already DRM free and bandwidth costs nothing these days, selling FLAC instead of mp3 is a no brainer (at least this is what one would think).

    45. Re:ditch corporate music by l0rd · · Score: 1

      The golden rule: He who has the gold makes the rules. What you musn't forget here is that in connection bandwidth & hard drive space is increasing dramatically every year.

      10 years ago it took an hour to download one mp3 and it would take up 2.5% of your hard drive, even though it's only 96/128k. Fast forward to now. 320 gig hard drives are sold for about 80-90 euros and they can hold about 50 days worth of continous FLAC music, more music than the average person buys in a lifetime. Not to mention that it now takes just 5 minutes to download a whole album.

      Now lets fast forward 10 years where you can probably get a 320 terrabyte hard drive for the same price. That's more than 46 years of not hearing the same song twice. And don't even want to think about how long it will take to download an album, probably seconds.

      P2P is here and it's here to stay. Whereas warez & piracy was once an "underground" thing where you had to know someone or have something to get to the good shit, these days any moron can download whatever he wants in no time at all without contributing anything.

      The record companies HAVE to evolve eventually, or they will die the death they deserve. They may wield much power, but p2p gives power to the masses and unites them. Give people good service and quality and they will pay you a decent price for it.

    46. Re:ditch corporate music by fourchannel · · Score: 1
      I'm trying my damnest to not support the RIAA. It's been a couple years since I've purchased a cd now. Fuck iTunes. Hell, it's been a couple of years since I've spent money on music.


      Triad (search for "torrent" and "tryad"), is one album that I know of that is released to the public under a creative commons license -- meaning that the makers of Tryad want people to share and distribute their album freely and without charge.


      Keep fighting it man, you're not alone in this one.

      --
      ---FourChannel---
    47. Re:ditch corporate music by cptgrudge · · Score: 1

      On a slightly tangential note, in my younger, naive years I downloaded some Tool music and I liked it. Music CDs, concert tickets, and T-Shirts were all bought, and if not for the music I downloaded through Napster, I may never have been exposed to it. I may never have met the friends I found through the common interest in it. I could have turned out differently and my life may not have been the same. I might have died through the butterfly effect of changes.

      In short, P2P may have saved my life.

      --
      Qualitas edurus commercium, nullus penitus net rimor, nullus deus beneficium
    48. Re:ditch corporate music by Xman73x · · Score: 0

      What the heck is wrong with Corporate Scum America today! I swear if they screw with my Generation etc there in a shit load of trouble! You hear me R.I.A.A take a hike Bozos's..Back off!-The radio has been around since the 40's and you wanna get rid of it? and switch it to what? listening to all stupid boring ass Hip-Hop -Bullshit!.And force us Americans to live in the dawn when there was no radio in the Post Wartime?..And I'm talking about when our parents the Generation-Xers parents that is! Were here even before the Recording Music Industry ruled the world!.Idiots in Hollywood California greedy Bastards!-What is the world becoming!..

  2. Classic Radio by jshriverWVU · · Score: 5, Interesting

    Does this apply even to stations that run regular Radio over the airwaves? You'd think they wouldnt have to double pay since they already pay royalties for the initial broadcast. Using the internet as a form of delivery I would think would be no different than using a repeater to extend range and "rebroadcast". *shrug* definately sucks, but I'll stick with japan-a-radio :)

    1. Re:Classic Radio by Anonymous Coward · · Score: 1, Informative

      At first glance one would think so wouldn't you. But such is not the case. The radio stations were given permission ( by paying the royalty ) to broadcast the music over the airwaves via radio, not stream the music over the internet. That is another method of distribution and the copyright holder maintains the right to determine how their content is distributed.

    2. Re:Classic Radio by Klaruz · · Score: 4, Informative

      No, it does not apply to regular radio. In America, regular radio AND internet radio pay performance royalty fees to ASCAP/BMI based on a percentage of revenue formula. That fee goes to the songwriters.

      For Internet radio ONLY, they ALSO have to pay a 'reproduction' fee, since internet radio is SOOOOO much different than regular radio according to congress. This fee goes to... you guessed it, directly to the RIAA, not the songwriters or artists. That's the fee they raised to obscene levels and what is threatening to kill internet radio.

      Fair huh? No? Call your congressman.

    3. Re:Classic Radio by ACMENEWSLLC · · Score: 1

      They have to pay a fee for every track they play, each time they play it, based on the number of listeners. At least that is true for my friend who works at a radio station.

    4. Re:Classic Radio by gad_zuki! · · Score: 1

      >That's the fee they raised to obscene levels and what is threatening to kill internet radio.

      Why would they want internet radio to thrive? The stream can easily be captured and turned into mp3s, traditional radio pays out, and the record companies are at war with anything internet based that isnt the ITMS. If internet radio finds a way to get by they'll just raise the rates again. This is how the record companies work. The last thing they want is decent internet radio.

    5. Re:Classic Radio by Klaruz · · Score: 1

      I know that's what the big labels want, but it's not what everybody else wants, and it's pretty easy to present to the lawmakers as being very unfair. Once the internet broadcast industry reaches a critical mass it will be much harder for them to raise fees.

    6. Re:Classic Radio by ubrgeek · · Score: 1

      There are two types of fees: Those that are artist-based (i.e. the creative content of the song) and then there are performance fees. Broadcasting on the internet counts as a separate performance. That fact was one of the primary reasons my former company (which shall not be named here because they are litigious bastards) decided not to offer their content over the Net.

      --
      Bark less. Wag more.
    7. Re:Classic Radio by Anonymous Coward · · Score: 0

      The goal here being to prevent it ever reaching such "critical mass" - at least in the USA. And if it reaches critical mass outside the USA, watch the RIAA call for a "great firewall of the USA" akin to the "great firewall of China" - only better implemented (NOT a good thing!).

    8. Re:Classic Radio by ThatsNotFunny · · Score: 1

      What's to stop someone from doing this with traditional radio as well?

      --
      "Was it a millionaire who said 'Imagine No Posessions?'" -- Elvis Costello
    9. Re:Classic Radio by Danse · · Score: 1

      What's to stop someone from doing this with traditional radio as well?

      Clearchannel.
      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
  3. Denial, RIAA style by speedlaw · · Score: 5, Funny

    OOHHH, make the internet just go away ! Pleazze ! Let us return to the day that we owned the radio station, the promoters, the concert hall, and the bands. Our old reliable system of "screw the desperate band", play the music "via cocaine and cash incentives" on the radio, and "fill the concert halls we control with our band", ending with "selling you the authorized T shirt". I'll even toss in a contribution to the "home taping kills music" fund. Please make that nasty internet go away.

    1. Re:Denial, RIAA style by GMontag · · Score: 0, Troll

      Better not let Al Gore catch you reading that or he will Global Warm you!

    2. Re:Denial, RIAA style by GMontag · · Score: 1, Funny

      Or writing it either ;)

  4. Me too! by jwest · · Score: 3, Insightful


    I'm also ready for higher payments!

    That means I automatically get them, right?

    1. Re:Me too! by Mateo_LeFou · · Score: 1

      You make joke, but the logic is precisely the logic of the intellectual protectionists. Here they actually (finally) use the word "protect":

      "Digital performance rights were originally granted to record companies in 1995, in part with the intention of protecting them against the possibility that digital transmissions could erode the sales of CDs."

      All you libs who think "the free market" is going to sort out this mess should get current. This market hasn't been within 100 miles of free since the Depression.

      --
      My turnips listen for the soft cry of your love
  5. Well it had to happen sometime by CastrTroy · · Score: 0

    I just think this was bound to happen. You couldn't expect them to let people broadcast music for no fee forever. I don't see how it even lasted so long. If I was an FM broadcaster I'd be really mad that I was paying more to broadcast than people broadcasting the exact same music on the internet. I don't think that there's really much they should be complaining about. If they don't like what it costs to broadcast the music, then they should be broadcasting music that doesn't require royalties, or pay the same amount as all the other broadcasters. Just because it's easy to set up a server that has 100 different stations, doesn't mean that they shouldn't have to pay for those broadcasts.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    1. Re:Well it had to happen sometime by Anonymous Coward · · Score: 1, Interesting

      You couldn't expect them to let people broadcast music for no fee forever.

      Except internet broadcasters have been paying fees. The difference is that the new rules make the fees higher for internet radio stations than for terrestrial radio stations.

    2. Re:Well it had to happen sometime by codegen · · Score: 4, Informative

      You couldn't expect them to let people broadcast music for no fee forever


      If you had bothered to read the article, or the previous article two weeks ago when the decision was announced (I know, I know, this is slashdot), you would have found out that previously they paid royalties similar to that of airwave broadcasting based on tuning hours. The move to per song/per listener is a considerable change in the fee formula that will drive many smaller broadcasters out of business. Its interesting that if I own a bar with non-live music (juke box/radio) I pay per listening hour regardless of how many patrons are in the bar that particular night, but if it is the internet, I have to pay per ear.


      --
      Atlas stands on the earth and carries the celestial sphere on his shoulders.
    3. Re:Well it had to happen sometime by tinkerghost · · Score: 4, Informative

      They were paying a fee. They actually could pay 1 of 2 fees, either a % of profit or a per-song fee. The dropping of the % profit fee structure is going to put most of the small e-radio stations out of business. The increase in the per-song fee is going to put most of the others out of business too.

    4. Re:Well it had to happen sometime by Steve525 · · Score: 1

      It's not that the internet radio sights didn't expect to have to pay. It's that what they have to pay is orders of magnitude more than what they have to pay to play the same music on traditional radio (to the same number of people). The royalty rate is way out of line. It will likely kill all internet radio, except pirate and large commercial companies who can heavily subsidize it. This is probably exactly what the record companies want, since it'll maintain the status quo over the most powerful marketing tool they have: radio.

      Right now, record companies make a lot of money, because they are the gatekeepers to having a hit record. What do you need to have a hit record? At this point, it doesn't take much money to record a good record; you can do a lot in a home studio, (although good producers and engineers do cost a lot). It doesn't take much money to sell a record on the internet. However, what someone can't do without the record companies, is get a song on the radio. Without radio, relatively few people will hear your song, and you won't sell much. However, if the internet radio takes off, suddenly a lot of stuggling artists will have a lot more outlets for their music. Many might find they don't need the record companies anymore.

    5. Re:Well it had to happen sometime by CastrTroy · · Score: 1

      Maybe they are higher for a reason. Maybe because the broadcast area for an FM channel is maybe 200 miles (I'm guessing, but I don't think it's more than that for most radio stations), and the broadcast range of internet radio is the entire world (or at least the entire US as far as the royalties go). Shouldn't they be paying more if they have a larger potential audience?

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    6. Re:Well it had to happen sometime by CastrTroy · · Score: 2, Interesting

      Maybe this is because they figured they could actually charge per person listening, which is the most fair way to charge when you think of it. With traditional radio, it is impossible to tell how many people are listening at any one time. With internet radio, it's extremely easy to tell how many people are listening, as least in terms of number of computers tuned in. Maybe the internet radio will just have to start putting on commercials like the FM stations do. Sure it makes the radio suck more, but somebody has to pay for the music.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    7. Re:Well it had to happen sometime by Klaruz · · Score: 2, Informative

      The fees are based on audience already. They use marketing data to determine how many listeners listen to the FM station (advertisers care too, so if the station deflates figures they make less money from advertisers).

      See my other comment, broadcast and internet radio pay the same ASCAP/BMI fees to the songwriters based on listener reach.

      Internet radio ONLY (NOT terrestrial radio) has to pay a reproduction fee to the RIAA, because you sit at home all day recording songs off internet radio complete with cross-fades and announcer blurbs. They raised this 'reproduction' fee to very high levels and that's what will kill internet radio. What, you don't sit at home all day taping internet radio stations? Call congress and get this fixed.

    8. Re:Well it had to happen sometime by Steve525 · · Score: 1

      I agree that charging per listener makes a lot of sense. But that's not the entire issue. The real issues is the rates are way higher than are reasonable.

      If you look at the history of how the rates were computed, the CRB tried to find real royality agreements to base the rate on. (The CRB dictates compulsive rates: the labels must agree to these rates as a minimum. If there are no compulsive rates, then each radio station must independently get a contract with the labels). Before the CRB got involved, some internet companies were already working on agreements with the labels. Because the internet companies had so little leverage, (the labels had little to loose by just going home), these agreements sucked for the internet companies. The only agreement that the CRB felt was suitable was one with Yahoo. So, a single royalty rate, given to a internet company with no leverage (and at the height of the bubble) was decided by the CRB to be the rate that should be applied to everyone.

      If I remember correctly, estimates were that more than 50% of the revenue (a few years ago when the CRB originally came up with rate) that a radio station could hope to get out of advertising would go to the royalty. Bandwidth would eat most of whatever's left, and the radio station would have a hard time being profitable. And these were optimistic estimates from the labels!

    9. Re:Well it had to happen sometime by david_g17 · · Score: 1

      Shouldn't they be paying more if they have a larger potential audience?

      Should radio stations in large cities (pop > 1 million) pay a tremendous amount more than radio stations in small cities (pop < 100)?

    10. Re:Well it had to happen sometime by Anonymous Coward · · Score: 0

      You couldn't expect them to let people broadcast music for no fee forever

      They had fees. They were paying. The change retroactively increased the fees resulting in some internet radio streamers getting bills for hundreds of thousands of dollars.

      Thanks for playing the clueless troll game, though.

    11. Re:Well it had to happen sometime by izomiac · · Score: 1

      An FM radio station is limited by range, an internet radio station is limited by bandwidth. An FM radio station could broadcast to millions (perhaps billions in theory) and AM could do even more. Internet radio stations aren't limited by range, but they are limited to X listeners. While internet radio stations can scale up, internet radio is also less popular. So I don't see why they should have to pay higher royalties to broadcast to fewer people. (Well other than that whole "RIAA wants to protect its monopoly on what Average Joe is exposed to" thing.)

    12. Re:Well it had to happen sometime by tkrotchko · · Score: 1

      "With traditional radio, it is impossible to tell how many people are listening at any one time"

      Well, you better tell Arbitron, because they sure make a good living on what is impossible.

      Can you tell to the last person? No, but the ratings give them a good enough idea that advertisers are willing to pay based on that data.

      --
      You were mistaken. Which is odd, since memory shouldn't be a problem for you
    13. Re:Well it had to happen sometime by iminplaya · · Score: 1

      ...but somebody has to pay for the music.

      They can get paid when they PERFORM! NOT by selling their demo disks. I know the law says differently, but playing a recording does NOT constitute a performance, any more than playing a movie of me fixing a car fixes the car. How did we let that happen? The concept is utterly absurd.

      --
      What?
    14. Re:Well it had to happen sometime by Percy_Blakeney · · Score: 1

      Shouldn't they be paying more if they have a larger potential audience?

      Should the IRS assess your taxes based on actual or potential income?

    15. Re:Well it had to happen sometime by Lithdren · · Score: 1

      Interesting? no not so much. I find it completly unsuprising.

      Its hard to confirm, for sure, how many people are in a bar at any given time. Not so true for internet radio. Not saying its right, just a great excuse to exstort money from legit business.

      Go RIAA! Go away, anyway.

    16. Re:Well it had to happen sometime by sorcerykid · · Score: 1

      Actually small commercial Webcasters previously operated under the SWSA which was exclusively a revenue-based royalty rate.

  6. Watch out, other countries by elrous0 · · Score: 1

    Remember that the RIAA and its WIPO buddies don't tend to content themselves just with *U.S.* laws and enforcement. They'll be headed for you next. Internet radio may be in danger where ever it's located.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
  7. Outsourcing? by spyrochaete · · Score: 3, Interesting

    What about offshore servers? Are you still liable to pay royalties if you're "broadcasting" from Israel or Sweden? Technically you'd be unicasting to your server, not broadcasting to an audience.

    1. Re:Outsourcing? by elrous0 · · Score: 2, Insightful

      Hardly a guarantee of safety. The RIAA and WIPO have already shown their ability to flex muscle in even the most liberal countries.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    2. Re:Outsourcing? by Anonymous Coward · · Score: 1, Interesting

      Not really a fix - if the business itself is a US business entity, it doesn't matter where the servers are.

      Now, offshore business entities ... another matter. Although they'd still probably be taken to task by their own jurisdictions.

    3. Re:Outsourcing? by sorcerykid · · Score: 1

      No. A royalty obligation to SoundExchange still exists so long as any listeners are based in the United States. Performance licensing of sound-recordings is dependent on where the performance itself takes place -- not the location of the streaming server.

    4. Re:Outsourcing? by spyrochaete · · Score: 1

      A royalty obligation to SoundExchange still exists so long as any listeners are based in the United States.

      How do you enforce that? How can you prevent Americans from tuning into an internet resource? If this is true I think it could be shot down fairly easily.

      Performance licensing of sound-recordings is dependent on where the performance itself takes place -- not the location of the streaming server.

      I really think a loophole could be found in this formula. For instance, what if you uploaded all the music to the offshore stream host? Then the performance would originate from that country.

      This is very similar to the eDonkey legal battles of several years ago. The law reinforced that it is illegal to host pirated materials, so eDonkey came around which introduced websites with nothing but links to the pirated material. Some countries then made it illegal to link to this material, so the sites provided links to the links. A few countries got even more audacious and tried to make hash checksums for pirated material illegal, but it was easily argued that identical checksums could be generated for legal archives or at random.

      Not to say that streaming radio is equivalent to pirating. I think the music industry is stupid to enforce this. If people lose access to these freely accessible, low-quality streams, they will simply start downloading high quality alternatives whether legal or not.

    5. Re:Outsourcing? by sorcerykid · · Score: 1

      How do you enforce that? How can you prevent Americans from tuning into an internet resource? If this is true I think it could be shot down fairly easily.

      The Webcaster would still be liable for copyright infringement in the United States. Authoritative enforcement is not a prerequisite for a civil suit to be filed (in this case, by the record labels).

      I really think a loophole could be found in this formula. For instance, what if you uploaded all the music to the offshore stream host? Then the performance would originate from that country.

      The public performance right is implicated at the time and place of the reception (not the origin) of a digital broadcast transmission of sound-recordings. This is a legal precedent recognized by virtually all countries that are affiliated with the International Federation of the Phonographic Industry (which there are about fifty if I recall).

  8. Well... by vhogemann · · Score: 1

    This only means that some internet radios will move their servers to somewhere out of the USA... somewhere with more sane copyright laws, or with no laws at all.

    I guess it's good news for the internet hosting business at Russia, China, etc...

    --
    ---- You know how some doctors have the Messiah complex - they need to save the world? You've got the "Rubik's" complex
    1. Re:Well... by elrous0 · · Score: 1

      Yes, because Russia and China are well-known for both their internet freedom and their unwillingness to kowtow to the RIAA and its ilk. Nowhere is safe.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    2. Re:Well... by djasbestos · · Score: 3, Funny

      Sealand!

    3. Re:Well... by elrous0 · · Score: 1

      Sealand *is* nowhere. Hence, it's safe.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
  9. Should mimic broadcast radio by Anonymous Coward · · Score: 1, Interesting

    Internet radio should be handled the same way broadcast radio is. The record labels pay the radio stations to play what they want them to.

  10. As the adage says, if you outlaw Internet Radio by vivaoporto · · Score: 4, Informative

    If you make hard for people that is willing to set up a legal Internet radio and make a profitable business of it, in the end, the only way to get internet music broadcast (and video, for all that matter) will be illegally, on P2P, FTP and whatnot.

    But, on a second thought, that is exactly what the Media Cartel want. They don't matter where you are getting it, as long as the only way to be legally exposed to new content is through their channels. They couldn't care less if you and a couple of technologically wealthy people are going around their blockage, but they will do everything on their power to prevent both the average people and the *artists* to get in touch with each other without them.

    This is not about giving people no options. It is about giving *artists* no option. People are attached to their favorite artists and will follow them wherever they go.

    1. Re:As the adage says, if you outlaw Internet Radio by Anonymous Coward · · Score: 1, Interesting

      Thank god mine are slowly returning to indie labels...there are moments where it is good to be a fan of Ska and punk (and I am talking real punk).

    2. Re:As the adage says, if you outlaw Internet Radio by sorcerykid · · Score: 1

      Very well put. This does appear to be an issue of "control" yet again for the recording industry. The end result will be limited options for music consumers and a constricted revenue stream for producers and performers as hundreds of legitimate Net radio services are forced offline or underground (i.e. pirate).

  11. Some useful links... by rly2000 · · Score: 5, Informative

    The DJ of my favorite internet radio stations, Radio Paradise, has a very informative blog concerning this issue.

    Also, if you're interested in taking action, check out Save Net Radio.

    1. Re:Some useful links... by Anonymous Coward · · Score: 0

      Sandcastles can only be built so high. Leave them be, I say. Let them do their worst. After the war, they will realise nothing is left, leaving the door open for change.

    2. Re:Some useful links... by thenet411 · · Score: 1

      What about the Internet broadcasters that make their entire living from Internet radio? What will they do until the war is over?

    3. Re:Some useful links... by tut21 · · Score: 1

      Here's an easy way to paste a letter into a form and e-mail Congress about it.

    4. Re:Some useful links... by compro01 · · Score: 1

      Here's an easy way to paste a letter into a form and e-mail Congress about it.

      better yet, write an actual paper letter. a sack of mail is harder to ignore than a disk of email.

      --
      upon the advice of my lawyer, i have no sig at this time
  12. What's To Stop International Broadcasts? by Anonymous Coward · · Score: 1, Interesting

    How is this going to affect streaming radio from other countries? What are they going to do to stop me from listening to a radio stream that doesn't pay any fees being broadcast from say...The Cayman Islands? How long till the U.S. Government starts actively blocking data entering the country much like China?

  13. It will sort itself out... by PhysicsPhil · · Score: 1

    This is a contract dispute between competing corporate interests, pure and simple. The broadcasters are complaining their costs are too high (like they'd complain the opposite), while the labels complain their profits are too low (ditto). The broadcasters have two choices: pay and play, or stop entirely. If they stop, the music labels will notice their profits dropping and will rebalance their royalty rates to something more reasonable. While it may take a little time, this will work itself out in the end.

    1. Re:It will sort itself out... by Steve525 · · Score: 5, Insightful

      If they stop, the music labels will notice their profits dropping and will rebalance their royalty rates to something more reasonable.

      You make the presumption that the labels want internet radio to succeede and their profits from internet radio to be maximized. What if what they really want is for internet radio to go away?

      Why would they want to do this? Because right now the labels act as the gatekeepers to the radio. That is why musicians sign horrible contracts with them. You want a hit record, you need to get on the radio. You want to get on the radio, you need to sign with a big label. If internet radio takes off, suddenly you'll have new outlets which the labels don't control. In the long run, maintaining this control is more important then any profits they might make of internet radio.

    2. Re:It will sort itself out... by snotrokit · · Score: 1

      I think you are dead nuts on. It is totally a control issue. The media companies and RIAA totally control commercial radio. Having been in the industry for many years, the stations are completely controlled by the labels. Prime commercial radio is losing numbers by the thousands to iPods, XM, internet radio, and other media outlets that are not controlled by the labels. Those wonderful outlets that feed the "long tail" of the marketing world that most of us exist in. How many of you actually listen to commercial broadcast radio when you are not in your car? How much did you listen to it 15 - 20 years ago. It is a shrinking segment, this price increase is nothing more that the labels making an extremely poor attempt at snuffing out something that they cannot control.

    3. Re:It will sort itself out... by vertinox · · Score: 1

      That is why musicians sign horrible contracts with them. You want a hit record, you need to get on the radio. You want to get on the radio, you need to sign with a big label. If internet radio takes off, suddenly you'll have new outlets which the labels don't control.

      What they fail to realize is that the RIAA can't and will not control internet radio overseas especially on the European front which of course don't play that much RIAA music anyways.

      Not to mention that if internet radio stations in the states can't play RIAA music then they simply won't be any stations that do not.

      Hence, only non-RIAA artists will get played and benefit from that. The thing is that as of now many genres do not get played on your standard radio stations (Industrial, Techno, Death Metal, Hardcore, Trance, Euro Dance) and only get played on internet radio or college radio stations.

      Most of these bands are not RIAA because RIAA will not sign them.

      In reality, for an indie artist to succeed (as in make a day job living) he needs to sell at least 5,000 CDs. That isn't much compared to the RIAA artists, but you don't really need extreme amounts of hype like the super artists do to sell tens if not hundreds of thousands of records.

      Which is why internet radio will help them.

      Of course I'm working on a project that hopes to by pass the CD process altogether which will go away in a decade or so because it is so damn expensive to release CDs.

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
    4. Re:It will sort itself out... by Overzeetop · · Score: 2, Interesting

      You didn't read the ruling, did you?

      I read it, and the panel that awarded the fees basically took the content industries' recommendations for the new fee structure verbatim, with only one exception (they also wanted a 25% add-on to the fee for any broadcast terminating at a mobile device). It's like two people going to a required mediator, and one party asking for $1000, and the other suggesting that they can afford $50, and the judge saying "$1000 sounds good to me!"

      --
      Is it just my observation, or are there way too many stupid people in the world?
    5. Re:It will sort itself out... by Strudelkugel · · Score: 1

      What if what they really want is for internet radio to go away?

      If they could make the Internet go away, they would do it, IMHO. But let me speculate on the RIAA's side of the argument. They might make the following points:

      1. The major labels spend a lot of money on bands that never break. The popular bands pay for these.
      2. Limiting the number of outlets for music allows the industry to better expose new artists by drawing people with the established artist work on a limited number of channels.
      3. Major labels will be able to draw the best new talent, since new bands might be interested in being associated with established artists the label has signed.
      4. Small webcasters that play established artists under the percentage of revenue model really are not paying fair compensation considering what it cost to promote the established artists at the beginning of their careers.
      5. Small webcasters leverage the major acts to bring listeners, but dilute the significance of the major acts by playing many other unknown artists. This may have the effect of fragmenting industry revenues, complicating the economics of artist promotion.
      6. People have so much music now, the significance of any particular artist is being diluted. Adding webcasts just makes the problem worse.
      7. The CRB ruling will force webcasters to negotiate license deals with individual labels. This means the majors will get a fair price for their artists (more money), the minors will get fair price for theirs. (Less money.)

      Is the above the kind of list they discuss in the RIAA cave? I don't know. Most of the web stations I listen to don't play major acts. It would be a challenge for me to name most of the artists. Occasionally I will hear something I like, so I go to iTunes to get a track. I haven't purchased a new CD in years. If the webcasters disappear, will start buying CDs? The answer is no. Between tracks I already have, music shows I record from FM with the All-In-Wonder card and podcasts, I don't have the need or capacity for new CDs. My guess is that I will generate less revenue for the industry, since my opportunity to hear new artist tracks I would like to own will diminish. I have plenty of other things to competing for my listening time. I don't know if my perspective is representative or not. The industry is betting that it is not.

      On another note, has anyone ever tracked how SoundExchange actually pays artists? Do they issue an annual report of some sort?

      --
      Imagine how much harder physics would be if electrons had feelings! -Feynman, maybe
    6. Re:It will sort itself out... by Steve525 · · Score: 1

      Thanks for taking up the labels' side of the arguement. It's something few people around here would do, and provides a useful counterpoint...

      1. The major labels spend a lot of money on bands that never break. The popular bands pay for these.
      This is true.

      2. Limiting the number of outlets for music allows the industry to better expose new artists by drawing people with the established artist work on a limited number of channels.
      Also true. Lots of internet radio stations means it would be harder to saturate people with a handful of artists. Of course, there's a cause and effect here between 1 and 2. It's possible that the reason only a few artists are able to break is because of the limited number of outlets. More outlets might mean that more artists are profitable, although it might mean that there are fewer platinum sellers.

      3. Major labels will be able to draw the best new talent, since new bands might be interested in being associated with established artists the label has signed.
      This is very true. Probably the most valuable thing a label does is separate the good from the bad. It would be impossible for me to listen to all the music out there to decide what I like. So, by marketing records, the labels do this for us. Unfortunately, we might not like what they decide to market. (There must be much better ways to discover new music besides drudging through everything, or relying on what the majors feed us).

      4. Small webcasters that play established artists under the percentage of revenue model really are not paying fair compensation considering what it cost to promote the established artists at the beginning of their careers.
      It is true that the catalogs of established artists are worth a lot more than the catalogs of unknowns. I've never heard of a compulsary licensing scheme that differentiates in this way, though. It would be a complicated mess. It's proabably better to simply assume all the (non-independant) artists played are popular ones. I agree that the precentage of revenue model is problematic, since some webcasters have so little revenue.

      5. Small webcasters leverage the major acts to bring listeners, but dilute the significance of the major acts by playing many other unknown artists. This may have the effect of fragmenting industry revenues, complicating the economics of artist promotion.
      This is the whole point of how radio is used to market music. New music is slowly mixed in with the familiar until it becomes familiar, too. So, what the labels are saying is that they should be the only ones who get to market new music this way, since they have the rights to all the familiar (popular) music. It's a pretty good scam, and I could understand why they'd want to keep it going that way (and perhaps even feel entitled to). However, it sounds like illegal anticompetitive behavior to me.

      6. People have so much music now, the significance of any particular artist is being diluted. Adding webcasts just makes the problem worse.
      The same could be said about TV (with 100's of cable stations compared to the 6 I grew up with) or even breakfast cereals. Over time, the number of options increase, and that's almost always good for everyone. The only negative is that too many choices can cause a paradox of abundance. (Too many choices and people decide they'd rather not choose at all, and choose something else entirely).

      7. The CRB ruling will force webcasters to negotiate license deals with individual labels. This means the majors will get a fair price for their artists (more money), the minors will get fair price for theirs. (Less money.)

      The whole point of compulsary licensing is to avoid the need to negotiate with individual labels. It's doubtful that any small to mid-size webcaster is going to be able to get a decent deal with a major label on their own. They just don't have any leverage. Now, thanks to the CRB, they know exactly what deal they are going to get, and it s

  14. What was that song again? by Bastard+of+Subhumani · · Score: 5, Funny

    The Buggles 2.0 # Streaming video killed the internet radio star #

    --
    Only three things are certain; death, taxes, and apocryphal quotations - Ben Franklin.
    1. Re:What was that song again? by qwertyatwork · · Score: 1

      I think your thinking of The Broad Band, Internet Killed The Video Star.

  15. In other news... by Cythrawl · · Score: 1

    Piracy of music goes up even further as people are no longer allowed to listen to Internet Radio for free... This kind of ruling is detramental. How long will it be before Radio stations run off shore like the Pirate radio of old...

  16. Profit? by SCHecklerX · · Score: 2, Interesting

    Don't most Internet-Radio stations make no profit? You'd think artists would be thrilled to get the publicity. If they do make a profit off of the songs themselves, then pay them. But I don't think that is the case. Even traditional stations have to use paid advertising. Right?

    Royalties for broadcasting over public airwaves, or on the Internet are a really dumb idea. The artist already got paid with the CD sale. The artist gets 'free' advertising.

    Go on tour and make your money. Use CDs as promotional material.

  17. Two scenarios by rueger · · Score: 1

    Scenario #1 - despite what they say the broadcasters/netcasters are actually already making a profit on their streaming services, and will bite the bullet, pay higher royalties, and a carry on.

    Scenario #2 - no-one is making money off of Internet streaming anyhow, and this will give them the excuse to pull the plug on a money losing service.

    And I guess that there's a Scenario #3 - everybody buys satellite radio receivers and iPods and radio listenrship just continues downhill.

    Personally I would really miss KFAI Minneapolis, a station that I listen to religiously.

    1. Re:Two scenarios by Gr8Apes · · Score: 1

      Scenario #3 is what they want. You do recall who owns 33% of XM, right? (ClearChannel)

      --
      The cesspool just got a check and balance.
    2. Re:Two scenarios by THESuperShawn · · Score: 1

      BUT...a good deal of XM/Sirius subscribers listen to satellite radio vie internet stream at work/home where they either don't have units (most still use the satellite radio in their car) or cannot get a signal.

      I have had XM for a few years now and haven't listened to terrestrial radio since. While at work,if I am not listening to an MP3 player, I am streaming XM over the internet to my cell phone or laptop.

      How is this fee going to impact listeners like me? XM Canada (not truly an XM Company) has recently raised their internet streaming fees by several fold due to licensing fees- will XM USA/Sirius be forced to do the same? If I am forced to pay for my streaming XM account (on top of my multi-unit XM subscription), I will seriously re-think my XM subscription.

      --
      Repant. Thy end is sheer.
    3. Re:Two scenarios by stoneymonster · · Score: 1

      You are missing a possibility:

      That some broadcasters ARE making a small profit and will be pushed into becoming money-losing ventures by this decision.

  18. In all honesty... by physicsboy500 · · Score: 1, Flamebait

    ...you should have to pay something for radio in general whether it be in ads or a subscription fee... that I have no problem with. What I have a problem with is the RIAA taking a healthy share for themselves and leaving much less for the bands and the stations that actually provide the music. Why do you think it is that small towns don't have stations with big name songs and artists... It's simply a factor of RIAA fees. If the artists had a better spokesperson music would be how it was intended and reach everyone that wanted to hear.



    I didn't log in right away... It's funny that my image verification word was detest

    --
    The original generic sig.
  19. And What About No Advertising NPR? by eldavojohn · · Score: 1

    SoundExchange, an entity that collects royalties from digital music broadcasters and distributes them to rights holders, has said the ruling was fair and that the rapid growth in advertising revenues from online music broadcasting would more than allow webcasters to cover the new fees.

    SoundExchange pointed to research finding that those ad revenues grew from $50 million in 2003 to $500 million last year.
    I listen to Minnesota Public Radio's The Current nearly 10 hours a day on average. I don't hear any advertisements. How does SoundExchange's logic apply to NPR when they aren't making any money off of advertising?

    I donate $120 to The Current yearly, if we're talking a couple cents a song, I'm not extremely worried that they can't pay that but I still think that public radio should be able to avoid this. I've learned about so many good bands via that channel! For the sake of all musicians I haven't heard yet, I hope internet NPR doesn't die because of this.
    --
    My work here is dung.
    1. Re:And What About No Advertising NPR? by Critical+Facilities · · Score: 3, Informative

      There IS advertising on NPR. You know the little "bumper" at the end of each package that goes:

      Support for NPR comes from the following...

      There's usually some commission, retailer, foundation, company, etc whose business is essentially getting a "plug" and for which they're probably making a much larger donation than $120 per year. Don't get me wrong, I'm not saying I think that this ruling is a good idea, but in fairness, I can understand how they might be trying to lump NPR into the fold as well.

    2. Re:And What About No Advertising NPR? by superbus1929 · · Score: 1

      They don't care about the smaller bands. They don't care about the smaller labels. This is all about the Big Four.

      See, the RIAA knows that people will buy whatever is shuffled in front of them. Feed a hungry person a shit sandwich, and he'll eat it. Therefore, they know if they can create a virtual monopoly on the market, then they will have complete control over the entire music industry in this country. So what if the smaller bands fall? So what if the smaller independent labels fall? More weight to throw behind the corporate bands, to get those tickets moving, get those CDs moving (with increased copy protection, BTW; how many CDs can't even be played in the car?), get that merch moving... get that money coming in!

      And it doesn't even matter who the musicians are. If you put a random band's mug - could be any band - on some posters, and give them glitzy enough production, they will sell, and sell well. It doesn't matter who it is; enough marketing will eventually make a profit. So the RIAA can afford to force people to play by their rules; those that play, they'll get paid attention to. Those that don't... well, you've seen it.

      Slashdot users are the exception; we are educated enough to see through this shit. But we're a vast minority, and the fact of the matter is that Joe Q. Randomguy isn't going to bother with a fight of this magnitude; I mean, shit, the new Fall Out Boy is out! That obviously trumps the fact that he could be paying for a $20+ CD that he can't copy, can't play in certain players, and has to register? Obviously, those 10 or so songs are worth it~

      --
      Let's stop dilly-dallying and just change "-1: Overrated" to "-1: Disagree" or "-1: Doesn't Subscribe to Groupthink".
    3. Re:And What About No Advertising NPR? by SatanicPuppy · · Score: 1

      Technically it's not advertising. There are very strict rules about advertising on not-for-profit radio. You can't include a "call to action" (e.g. "Go out and buy X") or anything similar, and I'm pretty sure you can't mention specific commercial products.

      Basically all you can say is, "The preceding programming was brought to you by the fine folks at X, who make many fine products that I can't tell you about."

      --
      ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
    4. Re:And What About No Advertising NPR? by MrNiceguy_KS · · Score: 1

      I know that's not entirely true. I remember just yesterday hearing "You've been listening to A Prairie Home Companion brought to you by Select Comfort, makers of the Sleep Number Bed, and by Toyota, makers of the Prius with Hybrid Synergy Drive." Heard it several times, in fact. Enough to give a nearly direct quote.

      --
      Redundancy is good And also good.
    5. Re:And What About No Advertising NPR? by An+ominous+Cow+art · · Score: 1

      I also contribute $120 once or twice a year to NPR. I listen to NHPR when I can. I also switch to another station whenever they begin mentioning their sponsors, because I consider it a form of advertising, and I will not be advertised at.

  20. Potential audience size is meaningless by Anonymous Coward · · Score: 2, Interesting

    Shouldn't they be paying more if they have a larger potential audience?

    No, else by your logic, any song played on shortwave radio would have to account for a potential audience of 6+ billion people.

  21. Less government by genrader · · Score: 1

    If the government wasn't known for saving big business we wouldn't be having this problem. Laissez faire is needed, then these companies will either learn to compete or die, they will have no ability to use force for this gay crap.

  22. Re:Denial, RIAA style-sideline story by speedlaw · · Score: 5, Interesting

    Many years ago, as a student rep at Boston U, we though about hiring a popular band for one of our student affairs. We were advised by several band managers that even tho we could afford the band (s) they would not play our, or any school. The reason was that if you played schools, the concert promoters (Boston, 1979-1983) would not hire you to play the big venues. This suddenly explained why once a band broke, you could never see them anywhere but the big arena. I agree that copy right holders are entitled to be paid for their work. What is happening here is more monopoly strongarming than copyright protection. The internet is the single greatest thing to happen to content since Gutenberg. Recall that prior to him, reading was kept to the Church and King...only elites could read...and they liked it that way.

  23. Not a good thing...for music....or musicians. by Anonymous Coward · · Score: 2, Informative

    Music publishers stand to make the most money.

    This rule change is not about paying artists more money. It is about controlling concentrating profit channels. Internet radio allows independent and niche genre music a place to be heard and promoted. If these rule changes go into effect internet radio stations will see a ten fold increase in fees paid to rights organizations.

    A few Music Publishers hold the vast amount of rights to music. They want nothing else than all the available bandwidth for broadcast to be dominated by titles in their catalogs. So they seek to raise fees across the board with one purpose. To shutdown alternative channels of music delivery. They want the control and the money. All of it. This is the only way they see to do that.

    SOMA FM Internet radio including my personal favorite Indie Pop Rocks (found iTunes radio tuner) is threatened with huge increases and will likely be forced to close. That would simply be a tragedy.

    Being a independent musician myself I know all too well the lengths that the industry has gone to crush people from making music on their own. They export money from venues and threaten litigation to club owners if they don't pay and return to a "cover band" formats. Or simply do away with live music. Some give up and leave the hassle of live music behind.
    Once again taking away channel of exposure. Granted there always will be musicians willing to starve and scrape by, but you can only do that for so long...the old phrase "don't quit your day job" was at one point almost going away, but they are working hard to make sure they make the decisions about who listens to what when.

  24. Counterproductive by Experiment+626 · · Score: 2, Insightful

    In the long run, this move by the RIAA is hurt its own interests. The current situation is actually pretty good for them. They're getting paid (though perhaps not as much as they would like), their music is reaching the ears of potential customers, and the broadcasts are at bitrates good enough to expose people to music while low enough nobody wants to fill their hard drive up with an archive of it.

    So what are Internet radio listeners going to do if this succeeds? Sure, some might switch to a more RIAA-encouraged form of entertainment, but a lot will just change the station. Once the RIAA wipes out the stations promoting their music, that leaves the ones playing independent and international music. "Drive your customers to discover competitor's product" is generally not the missing "2. ???" step that leads to profit.

  25. HELLO by xtracto · · Score: 1

    Where is the MAFIAA tag? they are the ones at the back of this too.

    --
    Ubuntu is an African word meaning 'I can't configure Debian'
  26. WOXY discussion by Luyseyal · · Score: 1

    There's been some discussion of this on my favorite Internet station, WOXY. While the owners have assured us that there is enough revenue to sustain WOXY under the current model, all of their user-based streams would probably go away or be vastly different (P2P, in nature, instead of broadcast). Also, I got the feeling that "sustain" meant more "squeak by" than "doing peachy".

    I've written both my senators and my congresscritter about this. Pretty please, do the same.

    Cheers,
    -l

    --
    Help cure AIDS, cancer, and more. Donate your unused computer time to worldcommunitygrid.org. Join Team Slashdot!
  27. Whew! by spikesahead · · Score: 1

    The headline had me worried for a second, but after actually reading up on this it appears that these new changes can be waived by independent bands.

    That's all I really cared about! I was terrified that these rules were being applied to ANY music being broadcast. If I want to put up a shoutcast station playing nothing but recordings of myself singing about my cat it would be outright robbery for me to have to pay a fee to the RIAA and it's ilk.

    Luckily the music that I like the most are all stations like Groove Salad and Monkey Radio, playing mostly independent and small label bands playing music in a specific (and non-mainstream) genre. Those bands have everything to lose by opting out of internet radio, so hopefully the majority (enough to make a station worth listening to) will waive the royalties for the very real return of me purchasing CDs from bands that will never see the radio dial.

    1. Re:Whew! by Anonymous Coward · · Score: 0

      Really? What Groove Salad are you listening to? I assure you a large chunk of my music library comes from Groove Salad and most of those CDs were NOT indy. Groove Salad would go away under these rules.

      Now the Indy Pop Rocks stream might be able to stick around...

      But face it: under the great 2002 blackout CARP crap, SomaFM shut down it's streams. This is far worse, and they are already hurting for money even before this idiotic ruling.

    2. Re:Whew! by jet_silver · · Score: 1

      spikesahead picked the stations and the rationale that I'd have thought would work earlier. Internet radio is where I first heard cuts from eighteen of nineteen CDs purchased in the last six months.

      Eventually RIAA will become irrelevant and the value of "eventually" is decreasing with every ratcheting up of their cash demands.

  28. Annoying, yes. A problem, no. by Anonymous Coward · · Score: 1, Interesting

    Let's get real. What this will do is force Internet radio stations to begin chargin subscription fees and limiting the rate at which you switch between songs. Using the numbers supplied by RAIN where the average Internet radio station serves 16 songs per hour at a rate of $.0008 per song. One hour equals 1.28 cents. If you listen for 40 hours a week all month long that's $2.05 USD. If you were listing 24/7 for the whole month that would be $9.52 USD/month. So going back to a 40 hour week, if the station charged you a monthly subscription of $5 a month, most of that would be profit. They'd be able to completely do away with ad revenue, a huge benefit over normal radio, and offer a free 1 week trial to new users. It would be annoying all right, but most people can afford that.

    1. Re:Annoying, yes. A problem, no. by Salsaman · · Score: 1

      Why would anyone bother paying though, when you can just fire up streamtuner and pick from about 2,000 free stations ? Are there any US internet radio stations anyway ? All the ones I listen to seem to come from France, Germany, the UK or Poland.

  29. Speaking as a musican by Critical+Facilities · · Score: 3, Insightful

    This is a slippery slope. I think that while on the surface, Internet radio and traditional, terrestrial, broadcast radio seem like the same thing, they've got some pretty significant differences. Obviously, terrestrial radio has a much larger share of the listeners. That is, while LOTS of people listen to Internet Radio, there are exponentially more Internet Radio "Stations" than there are terrestrial radio stations. Thus, the likelihood of 400,000 people listening to 1 terrestrial radio station (and thus being exposed to their advertising) is much higher than the same amount of people listening to the same Internet Radio Station. While not implausible that someone with a little money and marketing savvy might be able to make a dent with an Internet Radio Station, it hasn't happened yet.

    That said, I think to apply the same (or at least similar) royalty fees to these Internet Radio Stations is pretty unfair. As a composer and a musician, I despise that I have to agree with Clear Channel on this one, because I think that they are RUINING terrestrial radio if in fact they haven't ruined it already. I side with Internet Radio as an artist because it is exactly the freedom from some of the industry regulation that makes it possible for someone without Warner Brothers or Sony behind him/her to get exposure. There's no friggin' way I'm going to get my music played/heard on a Clear Channel station or in a Warner Brothers movie soundtrack without EVERYBODY getting a piece of the pie. On the other hand, if I find a niche Internet Radio Station, I can submit my stuff and get it heard by a smaller, but hopefully more targeted audience and perhaps eventually generate some revenue from licensing deals with them or CD sales.

    I guess my point is, while it would be easy to jump on the bandwagon as an artist and hope for the "big score" of more royalties, doing so would choke the "small time" Internet Radio Stations and make it once again a field of only "heavy hitters" with whom I stand little chance of getting heard. It may seem counterintuitive to some, but I think keeping things affordable with regard to royalties is exactly what's making it fertile ground for emerging artists and what's keeping Internet Radio a viable alternative for people looking for something more diverse and different than traditional radio.

    1. Re:Speaking as a musican by dbcad7 · · Score: 1

      The problem isn't about paying royalties, "commercial" internet stations do this already. It's about having to pay royalties "per listener" which is something standard airwave (and satelite) stations do not have to do. They want to think of internet radio in the same way they think of itunes, instead of thinking of it as "broadcasting" which it really is. It's wrong period.

      --
      waiting for ad.doubleclick.net
    2. Re:Speaking as a musican by FunWithKnives · · Score: 2, Insightful

      As a musician as well, I would question where exactly this "slippery slope" will end up. I actually believe that this is an extremely good thing for music as well as musicians. Many of us have been waiting for the lumbering RIAA dinosaur to sink into the La Brea tar pit that it has created for itself over time. This really isn't anything new at all. Anyone who has been involved with music at any point within the last sixty years or so has realized that the RIAA (and by extension the "Big Five") will do absolutely whatever it takes to rake in that last dollar. They don't give a flying fuck about music, or what they are attempting to shovel on the masses. They're business men.

      I hope beyond all hope that this pushes the DIY ethic into the mainstream. We that dwell in the scene have been doing it ourselves for quite awhile, and could really care less about the RIAA. Who exactly gives a shit if every single RIAA-endorsed artist is taken off of internet radio? Why exactly is that a bad thing? Internet radio will adapt, and in an extremely good way: More unsigned and independent artists, more esoteric genres of music, more concentration on music as an art-form, less cookie-cutter feel-good bullshit, and more than anything else, less people in it for the money.

      Another aspect that may have a chance to thrive is community. Until now, the community has been relegated to local scenes. The internet can change that significantly, yet for the most part the insanely popular band or plastic-pop-singer-of-the-week has managed to drown all semblance of this out. Maybe as more internet radio stations distance themselves from the RIAA labels this will change.

      In short, I really only see good things coming of this. The moment I heard about these new insane regulations and fees, I couldn't stop smiling. Everyone says that the RIAA is perpetually shooting themselves in the foot, but this time, I think they have finally fucked around and managed to shoot themselves right in the junk.

      My only hope is that they don't tone it all down after of the backlash.

      --
      "We may face a scorched and lifeless earth, but they're accountable to their shareholders first."
  30. I'm surprised... by jas_public · · Score: 2, Insightful

    I'm surprised that some enterprising country who doesn't give a frick about US laws and who wants western currency doesn't get into the "media business." Imagine if North Korea, Iran, Venezuela, or Cuba got opened their own internet radio and their own versions of AllofMP3? I'd think that would be a decent stream of revenue that would be hard or impossible to shut off.

  31. It jsut makes the royalties system redundant by 91degrees · · Score: 1

    All internet radio stations are free to negotiate their own deals with the record industry. Even better, they can ask for, and usually receive substantially better deals from the independents, who would be delighted to get some airplay for their artists.

    The only thing that bugs me about this argument is that surely the record industry knows this. I can't imagine they're intending to actively encourage their competition.

  32. Prog Rock vs Punk by Sporkinum · · Score: 1

    The Ramones only stations are going to take a bath under this. The all Yes station will get off light on comparison.
    pay royalties based on estimates of how many songs were played over a given period of time, or a 'tuning hour,' as opposed to counting every single song

    --
    "He's lost in a 'floyd hole"
  33. Retroactive by MobyDisk · · Score: 1

    Can someone explain why this is being done retroactively? I've seen some pretty stupid laws, but I've never heard of one that takes place retroactively. If the idea was to make this look above board, that part kinda kills the whole illusion. I'm desperately trying to find the "other side" to this issue. It helps when you are explaining it to someone if you have some idea why the law was passed other than "The RIAA is a bunch of jerks and they lined the pockets of the CRB." Surely they have some pretense of a reason...?

    1. Re:Retroactive by Achromatic1978 · · Score: 1

      I've seen some pretty stupid laws, but I've never heard of one that takes place retroactively.

      Never? You mustn't have been paying attention to the "war on 'terror'". Plenty of laws were passed in regards to that, and people arrested based on retroactive offenses.

    2. Re:Retroactive by Teancum · · Score: 1

      Retroactive enforcement is considered "ex post facto" and explicitly mentioned in the U.S. Constitution as something that can't be done by Congress or any rule making body. And courts have (usually) held a consistent view that such rules and laws simply can't happen. That is why most laws have a "grandfathering" clause built into them, or is implicitly assumed and enforced by courts.

      It is for this reason that roads going through wilderness areas can't be shut down... as long as they have historical existance prior to the environmental laws. A law granting authority to build these roads was repealed in the 1870's, (yes, 1870, not 1970), but that original law from elsewhen is still the authority for why many of the rural roads in the western USA are still allowed to exist even when environmental activists would like to see these roads closed down.

      As a practical matter, I don't see how you can effectively enforce such royalties in a retroactive fashion either, other than arguing that this is a pure copyright infringement situation and the RIAA is just trying to collect a legal "fine" for what was improper usage of their content. Unfortunately the RIAA had an earlier royalty system that would presume that those at least paying those royalty payments would have permission to broadcast the content.

      In short, show me where this is truly retroactive and not just a scare tactic to bring more FUD to this debate.

    3. Re:Retroactive by Anonymous Coward · · Score: 0

      Never heard of a law that takes place retroactively? That is an ex post facto law, and according to part of Article 1, Section 9 of the U.S. Constitution, "No Bill of Attainder or ex post facto Law shall be passed." Why did the CRB pursue such a law? Who knows? Since the music industry has been in a slump, maybe they're just trying to artificially raise past revenues- and future revenues. (The royalty rates increase each year.) Unfortunately, raising the royalty rates will only help the music industry as long as the internet radio broadcasters can or will pay them.

  34. Broadcast FM is much more like a monopoly by Mathinker · · Score: 1

    In my opinion, you should look at your argument inverted. Since there are a very limited number of broadcast FM channels at any given terrestrial location, each station has very limited competition (especially since channels often specialize the music they play in order to get more branding identity). Therefore, a broadcast FM channel should pay more for the opportunity to reach a more captive audience.

    Of course, logic and RIAA do not mix, so this actually has nothing to do with what's happening....

  35. Golden Eggs by boyfaceddog · · Score: 2, Funny

    I can just hear the copyright holders meeting now ....

    "And our projections show that if we choke the goose hard enough we'll get more eggs."

    --
    Here will be an old abusing of God's patience and the king's English.
  36. RIAA free radio? by Jaywalk · · Score: 4, Informative
    There is a lot of music out there which is not controlled by the RIAA. While it would mean skipping the "hottest new songs" (i.e., tuneless dreck) it would mean that the music could be streamed (or podcast) without any royalty payments at all. The 'casters could also make a side business selling their own music mixes with a percentage of sales going straight to the artists. And it direct competition to the RIAA hegemony.

    Anybody see a reason why this wouldn't work?

    --
    ===== Murphy's Law is recursive. =====
    1. Re:RIAA free radio? by csnydermvpsoft · · Score: 1

      Anybody see a reason why this wouldn't work?

      Quality of music, perhaps?

      Unfortunately, the music that is controlled by RIAA members extends far beyond the top 40. We'd be saying goodbye to many semi-popular groups, classics, and classical recordings.

    2. Re:RIAA free radio? by LOTHAR,+of+the+Hill · · Score: 1

      The RIAA is attempting to control all access to music content in the first place. If this passes, the only way you will find out about new music is from the RIAA.

      You might get lucky with local bands and festivals , but thats about it.

    3. Re:RIAA free radio? by rsmith-mac · · Score: 2, Informative
      It's not about what music is related to the RIAA, it's about who has to pay SoundExchange either way, which is everyone unless they have a written contract from some entity granting them music. Ari at DI.fm made an interesting comment on the subject, in short it won't work.

      You may ask us about why don't we just play unlicensed tracks or make an agreement with artists directly to avoid paying so much. The reality of the business is that it is virtually impossible to micromanage things this way. You'd have to have a world class communication company to be able to track down so many artists or labels, find where who is, who to contact, what forms to sign, talk them into it, etc. Plus you'd be surprised just how much of the non-mainstream music you love so much here is really signed to a label. That's why in theory the law that allows for a blanket license is really convenient - it's just that the rates which were set now are truly hopeless and stifle any kind of competition. What are we supposed to do, wave a flag and and turn into a payola service? Put a banner out that says "hey, whoever pays us the most in advance gets to have his or her track heard on the radio!"? Because that's the only model that is going to work with these rates.
    4. Re:RIAA free radio? by Jaywalk · · Score: 1

      it's about who has to pay SoundExchange either way, which is everyone unless they have a written contract from some entity granting them music.
      How about Fat Chuck, AzOz, Artist Direct, Go-Kart or EarBuzz? I'm sure these (and other) "entities" would be happy to have their portfolios of artists played on internet radio. Chasing down artists in ones and twos is not required.
      --
      ===== Murphy's Law is recursive. =====
    5. Re:RIAA free radio? by sorcerykid · · Score: 1

      Good question. However, the exclusive digital performance right applies to all sound-recordings -- regardless of the label's affiliation with the RIAA. Also there is not currently any compulsory license in place for podcasting of sound-recordings (Section 114 applies to non-interactive Webcasts, not downloads).

      So in both cases it would be necessary to negotiate this clearance (performance right and master-recording right) with every separate record label -- and that can be a very time consuming process. It is also not by any means guaranteed.

      Altogether, direct licensing can pose many legal hurdles for small Webcasters with limited resources.

    6. Re:RIAA free radio? by Jaywalk · · Score: 1

      So in both cases it would be necessary to negotiate this clearance (performance right and master-recording right) with every separate record label
      So why don't the indie labels and/or artists form a co-op to negotiate pricing as a group? The big labels dominate the RIAA and the agenda of killing off internet radio is certainly not beneficial to the smaller labels. And labels drop out of the RIAA all the time because they differ from the RIAA on policy. So why not form a competitor and let each label choose which one they want to belong to?

      Forgive me for keeping posting on this same topic, but I'm honestly baffled. I'm just an old businessman and I can't understand why a manufacturer (i.e., musicians) would accept the sort of odious conditions this particular wholesaler (i.e., the RIAA) treats them when there is another obvious and more direct route to consumers interested in their products.

      --
      ===== Murphy's Law is recursive. =====
  37. This is what the US needs by zerofoo · · Score: 5, Insightful

    We need to get left behind to shake up our policy makers. After a decade of stupid laws that kill innovation in this country, and start an economic recession, maybe people will wake up to the fact that conservative candidates and ideas need to be tossed out. You can not have progress without change. Conservatives, by nature and definition, resist change.

    Innovation killing patents, overly-restrictive copyright, anti-science and anti-education political agendas, trade barriers.....all the right ingredients to kill our economy.

    Maybe after a decade of being the "world-losers" joe-sixpack will figure out that new leadership is needed....and maybe voting only pro-choice or pro-life is too simplistic a strategy to keep our country competitive with the rest of the world.

    -ted

    1. Re:This is what the US needs by wandazulu · · Score: 2, Interesting

      Sadly, while I agree with you, I have a friend who I use as the "Joe Sixpack" acid test, and the only thing he wants to change is the price of the PS3. He uses Internet radio to stream the same classic rock songs from the local radio station, and when told it could be shut down, his response is to say "whatever...I'll just go back to listening to the radio."

      The thing that galls me the most is that he has absolutely no concern about America's place in the world. To him, America *is* the world. His rationale? We've got every type of climate and terrain, somebody from every country in the world, and "all the brains to last my lifetime" (his words). He has no kids so he doesn't give a flying fig about the future more than the next release of GTA.

      I get the impression there are a lot of these people about.

    2. Re:This is what the US needs by Anonymous Coward · · Score: 0

      You are damn right, in this world filled with tons of fucked up politicans that only say, I'm on the left, or the right, people need to read a freakin book and realiaze the U.S. is going down hill in a lot of areas (including the one talked about in yur comment). I think my best plan to have a good life in 10 years is to move to Eastern Europe or India where innovation can grow and not be shot down my greedy Motherfuckers like the RIAA.

    3. Re:This is what the US needs by Anonymous Coward · · Score: 0

      I get the impression there are a lot of these people about.


      Yeah, I'd say that they breed like rabbits, but they probably don't breed, based on the gamer mentality.

      Can't score if you're playing GTA all the time... >:-)

      We can only hope they don't breed so they'll weed themselves out of the gene pool...
    4. Re:This is what the US needs by The+AtomicPunk · · Score: 1

      The real problem is people like you that apparently think this is a Right vs. Left issue, when in reality, there's only one ruling party, and you keep voting for it.

    5. Re:This is what the US needs by Solandri · · Score: 1

      We need to get left behind to shake up our policy makers. After a decade of stupid laws that kill innovation in this country, and start an economic recession, maybe people will wake up to the fact that conservative candidates and ideas need to be tossed out. You can not have progress without change. Conservatives, by nature and definition, resist change.
      Yup, conservatives like the Democratic Congress and Bill Clinton who passed and signed the DMCA.

      The problem isn't conservatives or liberals. It's politicians bought by special interests.

  38. Petition to save internet radio by Zanix · · Score: 2, Informative

    Here is a link to the petition to save internet radio. http://www.ipetitions.com/petition/saveinternetrad io/ Please go sign it. The more people the better.

  39. Tipping Point? by Temujin_12 · · Score: 1

    I wonder what the tipping point is where the cost of doing business with the RIAA becomes so large that we see a mass exodus of artists to smaller, independent recording houses and then distributing their work themselves via the internet. When the collective disdain artists (and other industries) hold towards the RIAA reaches critical mass this mass exodus will occur and people will look towards new technologies (internet based distribution, alternate recording houses, etc) and the industry will move on leaving the RIAA doggedly holding on to their antiquated business model.

    Oh, and by the way RIAA, if you but lay a hand on NPR I will never buy one of your CD's again and will go around to everyone I know promoting artists that do not associate themselves with you. That's a promise.

    --
    Faith is a willingness to accept something w/o complete proof and to act on it. Reason allows you to correct that faith.
  40. Last.FM by DorkRawk · · Score: 1

    Would this affect something like Last.fm, where users have uploaded all the music that's streamed by their radio station?

    1. Re:Last.FM by Anonymous Coward · · Score: 0

      last.fm are London-based, so their royalty agreements will be with (AFAIK) MCPS-PRS

    2. Re:Last.FM by zugurudumba · · Score: 1

      Of course. From Wikipedia: "Last.fm is an Internet radio station and music recommendation system". The pay royalties just as any other internet radio station, so they will be affected too.

      --
      Sig
    3. Re:Last.FM by sepiroth · · Score: 1

      Last.fm is UK based so I this does not apply.

    4. Re:Last.FM by zenslug · · Score: 1

      But they might be required to pay for listeners in the US, no? Or at least I could see people trying to get them to pay. This whole thing is a giant mess. Last.fm is an example of a great website that is doing something different to radio. They had to take it to the internet and web to make it happen, but they've gotten pretty good at aiding in music discovery, something that terrestrial radio has not been able to do well for a long time. This could also affect Pandora, too, if I'm not mistaken.

  41. How to contact your congress critters. by Jaywalk · · Score: 1

    If you're not sure who your congress critters are or how to contact them, go to congress.org and type in your zip code. Remember that paper letters count for more points than email and reasoned arguments count more than rants. Note that the same site has a Soapbox where you can urge your fellow citizens to get involved as well.

    --
    ===== Murphy's Law is recursive. =====
    1. Re:How to contact your congress critters. by Achra · · Score: 2, Informative
      --
      Each processor would proceed sequentially as if it had been better for them not to rise against Saul.
  42. Radio by Skythe · · Score: 1

    They have the radio on computers now?

  43. Careful With Your Blanket Statements by Petersko · · Score: 3, Insightful

    "Anyone who has bought CDs knows each CD is engineered to have 2-3 good tracks and the rest as mediocre filler songs."

    Perhaps that has been your experience. Mine has been considerably different. I've currently got about 600 "real" CD's (I did a purge about 10 years ago, otherwise it'd be about 1000), and I'm willing to wager that, on at least three quarters of these albums, more than half of the tracks are much better than mediocre.

    Then again, I don't buy CD's willy-nilly just because I heard one song I liked on the radio. Look hard enough and you find thirty second clips for nearly all albums somewhere online.

    You might buy crap albums, but just because you do doesn't mean all albums are "engineered" that way. Like there's a group out there that tells bands, "Okay, now, we're up to three good songs - radio engineering standards dictate that you half-ass it for the rest of the tracks."

    1. Re:Careful With Your Blanket Statements by ubuwalker31 · · Score: 1

      I consider myself to be an enlightened music listener, and it has been my experience that I only enjoy two to three songs on a CD. This is the primary reason why I didn't buy CDs for a long time. Now, it is possible to download individual songs that are good.

      This is not to say that the other songs on the CD aren't good. Analogy: When you go to an art museum to see the Leonardo da Vinci exhibit, you don't dwell on his lesser known works, you head right to the Mona Lisa. Most people don't care about his sketches, just like most people don't care about crappy artists songs on CDs.

    2. Re:Careful With Your Blanket Statements by Petersko · · Score: 4, Insightful

      "Analogy: When you go to an art museum to see the Leonardo da Vinci exhibit, you don't dwell on his lesser known works, you head right to the Mona Lisa. Most people don't care about his sketches, just like most people don't care about crappy artists songs on CDs."

      As an "enlightened music listener" you should be MORE likely to examine the lesser known works. Otherwise you're not enlightened - you're a sheep, just like the masses, going wherever you're pointed. Enlightened appreciators will look at the sketches because art is progression.

      I've been a musician for 25 years (guitar primarily, with classical training and jazz aspirations), and I, too, would consider myself an enlightened listener. It's a matter of looking for the gems. I've ordered 36 albums this past calendar year from overseas (I'm in Canada) because the stuff typically on the shelves here doesn't draw me strongly. If you put in the time, you'll find PLENTY of great albums.

  44. Switch to broadcasting indies instead by frdmfghtr · · Score: 1
    Please tell me if I have this wrong:

    At issue are the royalty fees paid to royalty holders for broadcast music. The rates are going to drive Internet radio into the ground, and even major communications companies don't like it.

    If you are a small station and don't want to/can't afford these new royalties, why not just drop the content entirely and support local talent instead?

    There's lots of big talk about boycotting the big media companies due to heavy-handed tactics to protect their copyright and the lack of any good, new talent in mainstream media. If that's the case, I would think that more and more broadcasters would move to supporting local talent and dumping the dross that the major labels produce. After all, you don't pay royalties if you don't broadcast the content.

    From the Forbes article:

    The royalties in question only apply to digital transmissions of music, such as through Web sites, and are paid to the performers of songs and record labels. Webcasters also pay additional royalties to the composers and publishers of music, similar to those also paid by over-the-air broadcasters.


    Go independent, and I'd bet a lot of these fees go down, down, down and payment to the independent artist goes up, up, up. Isn't that what we all want in the first place?
    --
    Government's idea of a balanced budget: take money from the right pocket to balance...oh who am I kidding?
    1. Re:Switch to broadcasting indies instead by east+coast · · Score: 1

      Go independent, and I'd bet a lot of these fees go down, down, down and payment to the independent artist goes up, up, up. Isn't that what we all want in the first place?

      This is all fine and well within certain genres but there is tons of stuff this simply wouldn't cover. For instance: my father is a big doo-wop/oldies fan. There is no real way to substitute that type of music by indies. Maybe there is a handful of modern doo-wop style groups out there today that are independent but i doubt enough to support a station not to mention that he is listening to this music for it's place in time. The same is true of classic and prog rock. There are tons of bands that fit both of these categories that are out there today but a lot of prog and classic rock fans aren't going to be happy without Led Zep, Floyd or Rush.

      If you're listening to the radio for older, more nestaligic stuff this plan simply isn't going to work and I think that's what many radio listeners are still in it for today.

      After all that seems to be a big complaint among ex-radio fans: not enough new/difference material. So the ex-listener goes away from format radio and the loyal listeners are happy that they still get to hear AC/DC 20 times a day. They like the repetitiveness. Most people never move far beyond the music of their youth.

      --
      Dedicated Cthulhu Cultist since 4523 BC.
  45. Identification problem by Gription · · Score: 3, Insightful

    The nice thing about the MP3 model is it only rewards songs that are worth it. Anyone who has bought CDs knows each CD is engineered to have 2-3 good tracks and the rest as mediocre filler songs. The big songs are what they advertise and publicize via concerts, radio, movie soundtracks, etc. The filler take much less money to produce.

    If everyone is only buying the songs they like, it sends a drastic message: We won't pay for crap. Instead of an artist releasing 20 tracks a year, they could release half a dozen extremely high quality, worthwhile songs, and hopefully make the same -- or more -- revenue (since they don't need to make 11 filler tracks).
    . . . The problem with this statement is that when you ask a band before an album is released which songs are the 'real good ones' they will list a lot of songs that the public ends up seeing as 'filler'. They just can't tell. After they work on it, struggle with it, and create it out of nothing it becomes 'their baby' and they can't see it with the public's generic eyes. Look up a list of B sides that are huge hits and see how many of the A sides you can't remember. It is surprising!

    It is good that you can purchase just the songs that you feel are 'the good ones' but it is a double edged sword. You never get exposed to those 'other songs' that never got any radio play that you still love.

    I still hope that there is a massive enough shift in the market that a serious mainstream alternative to the RIAA evolves. When they become enough of a monopoly that they can stop caring about the customer or their suppliers (artists) they need to be slapped back into reality.
    1. Re:Identification problem by cayenne8 · · Score: 2, Insightful
      "The problem with this statement is that when you ask a band before an album is released which songs are the 'real good ones' they will list a lot of songs that the public ends up seeing as 'filler'. They just can't tell. After they work on it, struggle with it, and create it out of nothing it becomes 'their baby' and they can't see it with the public's generic eyes. Look up a list of B sides that are huge hits and see how many of the A sides you can't remember. It is surprising!

      Truer words have not been spoken!!

      Many a band has had MEGA-hits with songs they didn't really care that much about. Heck, I recently saw an interview with Ben E. King...he really came close to never cutting and releaseing "Stand By Me"..arguably one of the major classics from the 60's. I've seen and read interviews by many of the classic bands that were really shocked at what became hits for them.

      " It is good that you can purchase just the songs that you feel are 'the good ones' but it is a double edged sword. You never get exposed to those 'other songs' that never got any radio play that you still love."

      Yup...I'm sure glad this kind of thinking wasn't set in stone back in "the day". Otherwise we might not have had such classics as Sgt. Peppers, The Dark Side of The Moon, The Wall...

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  46. Here's what's really going on.... by KoshClassic · · Score: 1

    This is about control, period.

    The amount of revenue for the RIAA is insignificant, either if the fees stay the same or if their raised, since raising them will kill the internet broadcasting industry before its really started. And killing the internet broadcasting industry is exactly the point.

    Left unchecked, eventually internet radio will make broadcast radio obsolete. Maybe not for 10 years, but it will happen eventually. For the recording industry, that's a huge problem. See, they effectively control what traditional radio broadcasters play. Ok, maybe they cannot always control the individual bands that will get played, but they have enough control to more or less exclude independent music from the airwaves. With Internet radio stations, they have no such control. None. Perhaps over time they could build up such control with the major internet broadcasters, but that's no garauntee, and with every Tom, Dick, and Harry running his own Internet radio station out of his garage, controlling the entire medium will be impossible. Independent music will become more legitimate, and that is a direct threat to the existence of the RIAA member companies.

    Meanwhile, broadcasters like Clearchannel, who do not own the copyrights on the music in question, and thus really have no standing in front of the copyright board, are no doubt applauding from the side lines and having their lobbyists whisper a word or two into the right ears. After all, they've got as much to loose in this as the RIAA as they do not want to be superceeded by internet radio.

    --
    Understanding is a three edged sword. - Ambassador Kosh Naranek, Babylon 5
    1. Re:Here's what's really going on.... by Teancum · · Score: 1

      You did read that Clear Channel is one of those who are being vocal in opposition to these royalty rates? And they are also one of the companies who has a fairly substantial stake in seeing internet radio succeed with their own group of internet radio stations and simulcast rebroadcasting of their FM fare.

    2. Re:Here's what's really going on.... by Percy_Blakeney · · Score: 1

      Meanwhile, broadcasters like Clearchannel... are no doubt applauding from the side lines

      Perhaps you should read the actual ruling from the CRB; ClearChannel and other major broadcasters fiercely argued against the RIAA on this one.

  47. seems like great news by drfireman · · Score: 1

    When I first heard about this, I thought it was great news. Independent music labels and individual artists are still free to license their music to internet radio stations at lower prices, right? The high rates set by the CRB seem to basically mean that major labels will not have access to internet radio, while independent labels and musicians will (if they want). Although I like the occasional major label tune as much as the next guy, it's easy to see a major upside to this move. Through one channel at least, the RIAA not only loses its virtual monopoly, it loses access almost completely. As internet radio grows, this could turn out to be a huge boon to anyone who cares about independently produced music. Am I missing something?

  48. Internet Radio? What about the Consitution? by Jerry · · Score: 0, Flamebait

    BOTH political parties, and their syncophants, have been hammering the Bill of Rights pretty hard for the last 20 years, but BUSH, with the CONSENT of all but one politician, did the worst with the "Patriot Act".

    What's just as bad: members of both parties genuflect before multinational mega corporations for "campaign contributions", which they later convert to their personal use when they retire from 'public' service. That's why these contributions are nothing more than bribes, folks! That's why we got the DMCA, why the DRM may become US law, why the US gov paid hundreds of MILLIONS to cable companies for them to deploy optical cable (after local and state governments began deploying optical cable on their own) only to have the cable companies take the money and finger their promises. That's why one special interest lobby group's payoff cancels the vote of millions of citizens. All in the name of "free enterprise".

    And you're surprised that Internet Radio may die in the USA?

    --

    Running with Linux for over 20 years!

  49. esp. if minimum payment by Mateo_LeFou · · Score: 3, Informative

    I, of course, didn't read all (115 pages of) the copyright board's actual statement from this month, but it seems like the $500 minimum-per-stream doesn't depend on whether the station uses ASCAP music or free (e.g. cc-licensed) music

    "Radio Broadcasters propose that music-formatted stations pay a fee ranging from as little as $500 per annum for small stations in low revenue ranked markets to as much as $8,000 per annum for large stations in high revenue ranked markets"

    The term "Creative Commons" is not grep'd in the document so I assume it didn't come up.

    --
    My turnips listen for the soft cry of your love
    1. Re:esp. if minimum payment by WizADSL · · Score: 1

      "Radio Broadcasters propose that music-formatted stations pay a fee ranging from as little as $500 per annum for small stations in low revenue ranked markets to as much as $8,000 per annum for large stations in high revenue ranked markets"

      If we're talking about the Internet, how the hell would you define a "high revenue ranked market" ? I'm assuming "market" is used the way it normally is in radio.

    2. Re:esp. if minimum payment by Ksisanth · · Score: 1

      Check the "Definitions" section:

      (i) Performance is each instance in which any portion of a sound recording is publicly performed to a Listener by means of a digital audio transmission (e.g., the delivery of any portion of a single track from a compact disc to one Listener) but excluding the following:

      (1) A performance of a sound recording that does not require a license (e.g., a sound recording that is not copyrighted);

      (2) A performance of a sound recording for which the service has previously obtained a license from the Copyright Owner of such sound recording; and

      (3) An incidental performance that both:

      (i) Makes no more than incidental use of sound recordings including, but not limited to, brief musical transitions in and out of commercials or program segments, brief performances during news, talk and sport programming, brief background performances during disk jockey announcements, brief performances during commercials of sixty seconds or less in duration, or brief performances during sporting or other public events and

      (ii) Other than ambient music that is background at a public event, does not contain an entire sound recording and does not feature a particular sound recording of more than thirty seconds (as in the case of a sound recording used as a theme song).

    3. Re:esp. if minimum payment by Anonymous Coward · · Score: 0

      You can get permission from the artists themselves too, if they aren't too famous

  50. me! by Anonymous Coward · · Score: 0

    I'm making an effort to no longer support the RIAA.
    I have been for a while, in fact. So at least that makes two of us.

    It seems that there are many powerful people in America who really hate freedom (at least, they hate it when other people are free). Monopolism is not an American value, it is not economically healthy, and it is an enemy of freedom.

    Stand and fight.

  51. Re:Internet Radio? What about the Consitution? by sBox · · Score: 1

    Live from Radio Free Sealand...

  52. Re:Denial, RIAA style-sideline story by grimJester · · Score: 1

    I agree that copy right holders are entitled to be paid for their work.
     
    Does anyone else see the hidden error in this? Their work != the artists' work.

  53. Why Clear Channel? by Teancum · · Score: 0

    Of all of the people to come out specifically against this proposal, I would have thought that Clear Channel would have been one of the most vocal supporters of the original ruling.... as they clearly benefit from their existing terrestrial broadcast stations and would be the ones most likely to benefit from eliminated competition in the form of no internet radio stations.

    For those who aren't familiar with Clear Channel, they have become infamous for their seemingly insatiable appetite for buying broadcast radio stations and currently television stations as well. They have nearly enough television stations to begin their own competitive television broadcast network. Their control of commercial FM broadcasting is near legendary at the moment.

    So why the RIAA would not try to negotiate directly with their largest marketing partner and get them to come on board with an agreement that directly affects this particular business is something that to me is showing a decided lack of business sense and inept leadership on the part of the RIAA and the major music companies.

    I can not underestimate how significant Clear Channel coming into this against this royalty rule really is. It would be nearly like Mircosoft filing a friend of the court brief in a lawsuit supporting the GPL and open source community, where that was a major issue.

    Either that or this is a massive conspiracy (get out your tin foil hats people!) and Clear Channel is playing good cop/bad cop. Somehow I think the RIAA is just being stupid, and not brilliantly strategic with a much larger plan.

    1. Re:Why Clear Channel? by Skadet · · Score: 1

      Clear Channel uses internet streaming as another source of revenue.

      Example.

      There are "internet only" advertising packages which include ads on a radio station site along with streaming, etc.

      So yeah, CC has a big stake in this. Non-traditional revenue/internet revenue is (obviously) a big part of their long-term strategy.

    2. Re:Why Clear Channel? by Teancum · · Score: 1

      So again, who at the RIAA screwed up so royally that Clear Channel didn't sign on to this agreement? If your customers are those who sign the checks, this is one huge check that is regularly signed that the RIAA (and member companies... I can't forget them) absolutely depend upon.

      To piss off such a major customer should, in my opinion, result in a massive firing of all top management involved with the decision to push for this sort of royalty arrangement. If I were a shareholder of one of the major record companies, I would be doing just that upon hearing this sort of news.

      I don't care what business you are in, if you piss off too many of your customers you will quickly be out of business. This is one customer that the RIAA should not have pissed off, and should have been "in the pocket" in regards to this royalty decision.

    3. Re:Why Clear Channel? by vtcodger · · Score: 1
      At a guess, Clear Channel doesn't really care how they get their advertising to listeners. They figure they can compete with two guys in a basement operations. What they don't want to compete with is sophisticated operations backed with real money and based in the Bahamas or Cayman Islands or Madagascar for that matter who are targeting listeners in their markets with ads for Joe's Bar and Grill and giving Joe cheaper rates than Clear Channel is getting.

      Therefore, Clear Channel doesn't want to drive US Internet Radio offshore. Probably not the reason, but at least it's sort of plausible.

      BTW, Clear Channel is said to be selling off its operations in small markets. Maybe if you can figure out why (I can't) the reason for their siding with the forces of light and virtue on Internet Radio royalty rates might be clearer.

      --
      You can't see ANYTHING from a car, You've got to get out of the goddamned contraption and walk...Edward Abbey
    4. Re:Why Clear Channel? by Teancum · · Score: 1

      This is as clear of an answer as I can think of myself. I have no idea why I was modded down here, but I guess not too many other people can understand why Clear Channel has joined the "light side" either. My comment wasn't really trolling, or at least I don't think so. Somebody must not think Clear Chanel can ever get "good" press.

  54. O.K... We're done here. by InsertCleverUsername · · Score: 1

    I think I speak for most of us when I say "fuck 'em." These shitheads have proven again and again that they're hopeless Luddites who don't understand that the old rules don't apply. Even in the post-Napster age I've felt that it's only right to buy CDs of music I've really enjoyed on MP3, but bullshit like this just disgusts me. Where do these morons think I hear the new music I need to buy? Not on bland commercial radio.

    I'll be supporting musicians by buying their music at concerts. All these money-grubbing, no-talent shits and their lawyers can find a new line of work because I'm cutting them out of the revenue stream.

    --
    Ask me about my sig!
  55. bassdrive by Anonymous Coward · · Score: 0

    check out http://bassdrive.com/ it's arguably the best drum n' bass streaming radio and it keeps getting more popular. no ads, just awesome music, 24-7

    i cant recall the last time i listened to the "regular" radio for music, i only listen now for news and npr...

  56. Internet radio is dead... by f1055man · · Score: 1

    ...long live WFMU!!! who needs RIAA crap?

    1. Re:Internet radio is dead... by /dev/trash · · Score: 1

      For reals. They just had they're marathon too. BillyJam is my fave. ALthough does he play completely indie/legal stuff? I dunno.

  57. Some royalties go to the wrong people by grandpa-geek · · Score: 1

    My kind of music is traditional pre-1940's jazz (sometimes a.k.a. Dixieland). It is off the radar screen of the entertainment industry unless it involves reissues of very old recordings. You can't hear it on Sirius or XM Satellite radio. (I've looked for it when I take a flight where they offer satellite music.) You can't hear it on these consultant/remotely-programmed cookie-cutter stations that have taken over broadcasting over the past 20 years. About the only place you can hear it -- outside live performance or on recordings bought from the band or from labels that are not RIAA members -- is on public radio stations (for example, WAMU on Saturday night) who also stream their broadcasts on the Internet.

    Royalties paid to ASCAP/BMI for broadcasting traditional jazz don't benefit the widows, descendents, and other heirs of the people who produced that music. They are thrown into a pool that mostly benefits others.

    This royalty plan would not only send money to people who had nothing to do with the music being broadcast, but would also have the effect of further limiting the exposure of people to some of the greatest music of America.

  58. Perhaps the joy of music will return. by JonathanBrickman0000 · · Score: 1

    Quite a while ago, musicians were paid very little, and they worked for the joy of it, and listeners shared that joy with them. Then musicians started to get paid a whole lot, and although decline was not immediate, it has occurred. I have hopes that more of the joy of music will return!

    --

    J.E.B.
    Joshua Corps

  59. there goes the free country, for a few bucks more by unity100 · · Score: 1

    am i wrong ?

  60. So I'm confused... by UncleGizmo · · Score: 1

    It's a US association wanting license fees from US companies, right?

    So I can still listen to broadcasts hosted outside my borders? How will the Royalty Idiots & A**holes of America enforce this?

    --
    Who put this thing together? Me, that's who.
  61. Radio Paradise.com link by zenslug · · Score: 1

    The link posted was broken, so here is the fixed version:

    http://www.radioparadise.com/

  62. No, it's not counterproductive... by Svartalf · · Score: 2, Insightful

    If you stream, you owe the compulsory licensing- doesn't matter if you're streaming signed artists or not.

    This is what they want. They don't want the venue to exist, so they'll get the government to tax the hell
    out of it so it'll go away. I wouldn't mind helping my favorite internet stations pay the bill if I thought
    that the money would go to the artists I listen to (All unsigned in the case of the stations- I like listening
    to Celtic, Celtic Rock, and Renaissance Festival music on the streams. I don't listen to much else...) but
    I know that this big spike in fees happens to go to the pockets of RIAA directly and then to the labels.

    Not to the artists in question.
    Not to someone who's at all a legitimate rights holder for the stuff in question.
    Just to RIAA.

    Tell me again WHY the radio stream providers have to do this?

    They want this stuff off the air because they see themselves as being the gatekeepers of culture.

    --
    I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
  63. A long long time ago... by HTH+NE1 · · Score: 1

    I can still remember how that music used to make me smile.

    --
    Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
  64. quick & easy solution (maybe redundant) by Anonymous Coward · · Score: 0

    Simple solution: just move north of the border. Cities like Vancouver, Toronto, Montréal or Québec aren't that bad. It's not as if they don't have running water or electricity (and Hydro-Québec's electricity is fairly cheap, so...).

    Or just go to Europe. It's not that complicated!

  65. comments from a webcaster by iamthelinuxguy · · Score: 2, Informative

    I am a former radio dj. I always wanted to have my own radio station. My dreams came true a little over a year ago when I started my very own Internet radio station. I have spent around $4500 dollars getting the station up and going. There are costs for music, automation and music scheduling software, computers, bandwidth, stream hosting, licensing fees not to mention the endless hours I spent putting it all together. I also did all the webpage creation and hosting myself which saved me quite a bit of money. I had originally hoped that I would at least be able to re-coup my original investment and get enough revenue to at least cover my expenses. After a little over a year of broadcasting, I have received $0 in donations and just $20 from website advertising revenue (google and amazon). I finally resigned to the fact I was never going to see my $4500 again and since that most of that was sunk costs, I would just continue paying the ongoing licensing/streaming fees so that I could continue playing the music I love for myself and the small number of listeners that also enjoy the station. I never expected to get rich off this thing. I did it for my love of the music and my passion for radio. Now if this decision is not reversed I'll just be forced to throw all my hard work and dreams into the toilet. Some of us aren't the greedy bastards we're being made out to be. We just love music.

  66. Re:RIAA free radio? The filtration problem. by Jaywalk · · Score: 1

    While the RIAA controls a lot of music, I would contend that they don't control the best or even the most, only the best known. Many formerly popular groups have retrieved their music, which the RIAA has been neglecting in favor of the more profitable new groups. Classic music scores are, generally, public domain and can be performed by any competent orchestra. Do you honestly believe that RIAA artists are inherently "better" than the huge number of non-RIAA artists? The only real problem is one of filtration. As covered previously the question is, how do you filter out the huge number of wannabees from the genuine talent? IMHO, a rec system could be put in place which would allow the listeners willing to rate tracks to winnow out the pretenders and provide a list of talent better than anything the RIAA offers.

    Remember, the RIAA makes more profit when there are fewer artists selling more copies of the same songs to more buyers. Therefore, it is in their best interest to reduce the amount of music available. In turn, this means that the bulk of those with real talent out there do not have a contract with a major label. The RIAA is opposed not only to the rights of artists and fans, but to music itself.

    To someone who contends that the RIAA controls the best, I would ask, "How much non-RIAA music have you listened to?"

    --
    ===== Murphy's Law is recursive. =====
  67. At the risk of a Gitmo trip... by Anonymous Coward · · Score: 0

    It seems that the only reason why a country works, is that we wake up in the morning and decide to abide by the rules. We also decide that we have some meta-rule people: the boys, the heat, the fuzz. Call 'em what you want, but we give them powers that not many other people have. When was the last time you strapped on a gun and baton and walked into a McDonalds?

    This is the lesson that we should pull out of the original Vietnam conflict: prohibition. We as a country decided to say "we want booze now, Damnit" and the Vostad act was yanked. Draft Dodgers in Vietnam underscore that point, too. If we as a society decide to say 'Fuck You' to the establishment, then we become the establishment, and those that control things are pushed to the side (only to be replaced by a different set of Nazis - but I'm wandering off the path.)

    Unfortunately, whenever we fight for our rights, people end up getting hurt - or even killed. I have no doubts that if this email is taken seriously, the RIAA would attempt to find my family and put the hurt on them - not to mention that reminding people about how the system really works makes those 'in charge' extremely uncomfortable.

    As more people partake in an illegal act, that act becomes legal.

  68. Let's be honest anyway by argStyopa · · Score: 1

    Extinction is such a nice, nondescript word.

    Internet Radio in the US is being MURDERED by the MafiAA.

    Fortunately, what these bastards utterly don't understand is that the internet doesn't give jack squat about national boundaries. So fine, US internet radio producers will be driven out of business by the government at the behest of protective corporate interests. I'll listen to Swedish, Japanese, or German stations instead.

    --
    -Styopa
  69. Sword Cuts Both Ways.... by flyneye · · Score: 0

    Well!This is the perfect opportunity to start playing music from open licenses.
    Lets just keep on broadcasting but without all the music industry garbage.
    When we fill the net with non-industry tunes,we have control,not them.
    Later they can pay us(payola) to play their sh*t.Don't think I will tho.
    I actually WANT the industry to fail,so we can have control as it should be.
    This is a good thing.

    --
    *Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
  70. Re:Denial, RIAA style-sideline story by Anonymous Coward · · Score: 0

    That must have been unique to that time period or to your geographic region then. When I was in college in the late 90's at a very small midwestern school in the middle of corn fields, we had a number of very well-known arena-filling bands come through. They liked it because it was like a mini vacation for them -- they could escape the crowds of the big city and basically wander around town anonymously. Likewise, if they were travelling by bus, it gave them a nice stop between the major cities. Basically, it was pure profit for them too because the minute their trucks got onsite, they had free student labor to do all the setup, security, etc.

  71. Re:Denial, RIAA style-sideline story by iminplaya · · Score: 1

    The internet is the single greatest thing to happen to content since Gutenberg.

    Yes,well, we all know how the distribution industry reacted to Gutenberg. That's what started this whole mess. Copyright exists to protect the distributors. It has nothing to do with the creators, while their little smokescreen about "protecting the artist" is just that.

    --
    What?
  72. Method of restricting freedom of speech. by Anonymous Coward · · Score: 0

    Correct me if I'm wrong, isn't this congress restricting the expression of speech and expression via "unreasonable fees". This is like the voter tax where the rich can pay the "poll tax" so only the rich can vote (24th Amendment). So only the rich companies can broadcast their media to us and the little guys, like the music I hear all of day, will go out of business.
    I understand that some that the artist need their incomes but some of the music I hear are not on available on CD or other forms of media currently (due to lack of sales or other reasons) or they are only available in foreign countries which don't allow sales internationally.
    We, in the US, should not have congress restrict our voice or anyone other voices to allow us to listen what we want to listen to.

  73. bleck by Danzigism · · Score: 1
    Musicians need to simply stop selling their souls just for some promotion and tshirts, and do the work the hard way, and enjoy the more simplier things about playing music. stick with an independent label, or just write and record the music all yourself.. that way the god damn RIAA won't have shit to worry about.. the music belongs to the people the moment it is aired anyway..

    I guess the RIAA should just cancel their music all together because there's no getting around broadcasting it, or pirating it.. Everyday more and more independent bands spring up and start becoming more well known without the help of the recording industry.. of course you might not get all the 13 year screaming teenage girl fans that you've always dreamed of due to the RIAA infiltrating Nickolodeon, but is that what you really want anyway?

    cancel out the middle-man (RIAA), and simply let the people have your music, and we'll never have to worry about this bullshit ever again..

    --
    *plays the Apogee theme song music*
  74. Thats ok by ms1234 · · Score: 1

    I listen to (according to my knowledge) royalty free music from hardhouse.co.uk :)

  75. Parent is way more informative than I am by Mateo_LeFou · · Score: 1

    Thanks for that. If all goes well, then, the minor outlying stations will pretty-much have to start raising awareness of CC-licensed music or nothing at all.

    --
    My turnips listen for the soft cry of your love
  76. Royalties still apply to foreign transmissions by sorcerykid · · Score: 1

    Unless Last.fm has negotiated a license agreement with SoundExchange, they are no more entitled to transmit their streams into the United States than any U.S.-based Webcaster. From what I understand, Last.fm, has thus far obtained clearance from several record labels, but that may not completely absolve them of their royalty obligations for the remainder of the sound-recordings being transmitted into the United States (which PPL alone cannot authorize).

  77. Over the air broadcasts don't pay this royalty by Anonymous Coward · · Score: 0

    Over the air broadcasts don't pay this royalty - it's purely a royalty on digital (internet) broadcasts. Over-the-air broadcasters are specifically exempt from paying royalties on the sound recording copyright.

    (Over the air broadcasters, as well as internet stations, also pay for the "composition" royalty, via ASCAP/BMI/SESAC.)

    These royalties were legislated by the Digital Performance Right in Sound Recordings Act of 1995 (aka the DPRA). The reason was that "digital" broadcasts were then though to be "perfect copies" of an original work, and therefore should be treated differently than over-the-air radio broadcasts, and hence the law was changed so that only over-the-air broadcasters were exempted from royalties on the performance of sound recordings. When the original copyright laws were written, congress realized that they were creating a legal monopoly to the copyright holder. So in order to balance out that government-given monopoly, they also added provisions for fair use; such as copying for personal use, exemptions for libraries, and exemptions for radio broadcasters.

    The DRPA is based on a fundamentally flawed assumption that "digital transmission" allows unlimited perfect digital copies of the original work. But internet radio does not distribute perfect digital copies of the original copyrighted performance, they use MP3 and WMA which broadcasts are drastically "compressed" and (I'm sure you know) no where near a perfect digital copy. They also segue songs together, and make announcements over the beginnings and ends of songs. It's just like over-the-air radio, and in many cases, the audio quality of the internet broadcast is inferior to an analog FM broadcast!

    Due to all the corporate consolidation in over-the-air broadcasting, it no longer provides a free flow of ideas and information. Internet radio has responded to fill that free flow of ideas, and there are thousands of internet radio stations with loyal audiences who look to them to discover new music. Many of these are advertising-free, and support themselves through listener donations. But if SoundExchange gets their way, advertising-free Internet radio will come to an end, and only the largest corporations will be able to legally operate internet radio stations in the United States. US listeners seeking a diversity of viewpoints will be forced to turn to international broadcasters.

    Achieving parity with over the air broadcasters seems to be the only fair solution for internet radio broadcasters and the listeners. Amending 114(j)(3) of the Copyright Act to change the definition of "broadcast transmission" to include internet radio broadcasts, aka "eligible nonsubscription transmission", as defined in Sec. 114(j)(6).

  78. Alternative to SoundEx by sorcerykid · · Score: 1

    Actually there is an alternative to SoundExchange. Royalty Logic also distributes royalties to record producers and recording artists. However, they do not execute license agreements, from what I understand.

    Therefore, the real issue is that SE was selected as the sole designated agent to collect all royalties from digital music services operating under the statutory license -- which in essence created a monopoly. (Can we say antitrust consent decree waiting to happen?)

    That is why I would like to see a shift away from the broken regulatory model of licensing and toward independent licensing collectives (a la ASCAP and BMI). Let the free market sort these issues out instead. We need to promote increased competition in the world of digital broadcast licensing.

  79. SoundExchange - good luck getting paid by Anonymous Coward · · Score: 0

    Good luck getting paid by SoundExchange if you're an indie artist who gets a bit of internet radio airplay. The way their stats work is that until you hit a certain level of popularity, you're not going to see anything. And while 50% goes to the sound recording copyright owner, 45% goes to the artist and 5% goes to the musician's union. So the unions make money even if you released your own track, recorded at home entirely by yourself.

    On the other hand, half of the board of SoundExchange is made up artists representatives, and half is made up of RIAA and label people.

    SoundExchange is not pure evil. But it has an evil streak.

    1. Re:SoundExchange - good luck getting paid by multisync · · Score: 1

      Good luck getting paid by SoundExchange if you're an indie artist who gets a bit of internet radio airplay.


      Agreed. Indie artists are unlikely to see any of the money collected by SoundExchange. I was just pointing out that the fees are collected for all songs played, not just those of RIAA-affiliated artists.
      --
      I don't care why you're posting AC
  80. Power lies in the hands of the musician by bennini · · Score: 1

    This is not about giving people no options. It is about giving *artists* no option. People are attached to their favorite artists and will follow them wherever they go.


    The parent makes a very good point. The masses will never congregate to stop buying music that is backed by the RIAA due to the fact that if a band has signed with an RIAA company, then there is no alternative way to get that band's music. If you want that band's music but hate the RIAA, there is no way around forking cash over to the RIAA as well. I dont have a say in who produces Tool's music.... and honestly i dont give a shit, im gonna buy their albums regardless.

    This is why the salvation of the music industry does not lie in the hands of the consumer but rather it is up to the music bands and musicians to assemble and combat the oppressive RIAA. Ideally what is needed is a group of mega artists (say U2, Rolling Stones, Madonna, Michael Jackson, Jay Z, The Dixie Chicks, etc) to round up a few billion $ and say "ok, we'll create a low-profit production agency that will market and produce bands' music...the bands/musicians get 80% of the profit, and the other 20% goes back to the production agency." This would circumvent the RIAA entirely and accomplish the much desired revolution that the music industry direly needs. The musicians are the ones who allow this crap to happen and they are the ones who have the power to change it.... We just want good music at an aforedable price with a model that rewards the musician for bestowing us with the music we love to hear.