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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.

18 of 229 comments (clear)

  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 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. ========
    3. 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."

    4. 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.

  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 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. 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.

  4. 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.

  5. 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.

  6. 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.
  7. 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.
  8. 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.

  9. 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.

  10. 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.

  11. 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. =====
  12. 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

  13. 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.