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Day of Silence On the Internet
A number of readers sent in stories about Net radio going dark for a day. Not all of it, but according to the Globe and Mail at least 45 stations representing thousands of channels. The stations are protesting a ruling establishing royalty rates that will put most of them out of business on July 15. "The ruling... is expected to cost large webcasters such as Yahoo and Real Networks millions of dollars, drive smaller websites like Pandora.com and Live365.com out of business and leave a large chunk of the 72 million Net radio listeners in the dark." SaveNetRadio has a page where US residents can locate their senators and representatives to call them today.
Basically it boils down to the fact that terrestrial broadcasters pay no royalties whatsoever to the recording companies, but the recording industry wants to extort as much money as they can from the internet music business.
One thing I don't understand is why the terrestrial broadcasters don't pay royalties in the US. AFAIK then do in most other counties. They certainly do in the UK. Anyone know?
ccalam - acoustic versions of new songs.
Because of these changes (which are not applicable to terrestrial or satellite radio broadcasters),
Keep in mind that both XM and Sirius have contracts with the RIAA that requires them to pay a percentage of subscription fees. So no, they're not paying the same fee, but they do pay a significant fee.
How is this even legal? If they are collecting money for bands that aren't even affiliated with them, then they aren't giving these bands any money either, so basically they are just taking money. How do they define a song anyway. If I start up my own internet radio station, and it has no music, then I probably shouldn't have to pay them. However, if I sing "jingle bells" on air, will they now require that I pay them? What about the opening musical jingle to my radio talk show? What about if I'm a band and I let my fans stream my songs from my website for free? Does this count as an internet radio station?
Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
I am a friend of a terrestial FM station's president. He also streams his content, for free. Him and I were discussing this issue just last week.
/AC for a reason.
He can afford paying the royalties, if he must. The smaller shops will pay about the same.
Here are the issues as he pointed out.
1. He is going to have to pay 10x what he would have in the past.
2. The artists don't even know the cut they are going to get.
2a. The artists are beginning to catch on.
I have a feeling that the NAB (National Association of Broadcasters) that represent terrestrial radio is partially behind this. Recently, they've seen competition increase significantly with MP3 players like the iPod, satellite radio, and Internet radio. The NAB is already trying to limit their competition by lobbying against the merger of the satellite radio companies, Sirius and XM, which are both taking massive losses. I wouldn't be surprised if they're behind an attempt to kill Internet radio.
I don't know about you guys, but I've completely stopped listening to regular radio. To me, regular radio has degenerated into commercials and the same 10 songs in repeat. Now I listen to my iPod on my commute to work. I'm very sure that many people are doing the same.
I still listen to radio: two little college stations that, between them, have played three songs I've heard on mainstream radio, and that's after two years of listening. (Thomas Dolby's "Airwaves", Kate Bush's "Running Up That Hill", and the Pixies, "Where Is My Mind", for the record. Neither radio station will accept requests for "Where Is My Mind" because both say, and I quote, "We play that ALL THE TIME: we've aired that six times in the last eight years!") As a result, I've found out about 30 dozen, conservatively estimating, new bands I would never have heard on Clear Channel. Rock on.
Nostalgia's not what it used to be.
Basically, SoundExchange collects royalties for everyone, RIAA member or not and no matter what license is used for the song release. So even Creative Commons works get royalties collected. Now, I do not believe they are an RIAA member, but there is a rep from each of the Big 4 on the SEx (I love it already.) board. You have to pay fees to collect your royalties from them, but you can apparently come up with your own deals to bypass them; however, you are still required to inform them I believe.
Now here is my question. If you are not a SEx member, how the hell can they be collecting fees for your copyrighted works if they hold no copyright on your works? Something about this systems seems a bit screwed up.
"Some days you just can't get rid of a bomb."
I received this yesterday:
"Dear Dr. XXXX:
This letter acknowledges receipt of your communication about internet radio.
The Copyright Royalty Board (CRB) recently announced new statutory royalty rates for certain digital transmissions of sound recordings for the period January 1, 2006, through December 31, 2010. Implementation of these new rates marks the expiration of a previous royalty rate agreement specifically designed to benefit "small" web casters.
I support an artist's right to be paid what they deserve for their song, book, picture, artwork, television show or movie. However, the CRB's action to move royalty payments from a percentage of revenue to a flat per song fee will threaten the further existence of internet radio. By moving to a flat fee system internet radio stations will only be allowed to play either a limited number of songs or strictly use unsigned or up and coming musicians. For a small internet radio station to survive they will need a significant increase in revenue to be able to play the variety of songs current available on-line.
I firmly believe that the way consumers view and listen to music is drastically changing. We are in an age where people can download, watch and listen to almost any show, movie or song when they want. The internet allows people to experience new music and shows and gives individuals a forum to express and share their hobbies, their work experiences and what music they enjoy. At a minimum the same rules that apply to FM/AM radio should apply to online radio stations. Finally, there is a Congressional effort led by Representative Jay Inslee to overturn the CRB's decision. I will monitor that effort closely.
Thank you for sharing your views on this issue. Please do not hesitate to contact me in the future if you have any questions or comments. To receive additional information about issues that are facing Congress, Maryland, and the Nation that may affect you and your community, please visit my website at www.dutch.house.gov and sign up for my periodic e-mail newsletter.
C.A. Dutch Ruppersberger
Member of Congress"
" Thank you for contacting me regarding H.R. 2060, the Internet Radio Equality Act. I appreciate hearing from you on this important, and I am pleased to tell you that I am a cosponsor of this bill.
As you know, on March 2, 2007, the Copyright Royalty Board (CRB) dramatically raised the performance royalty rates for webcasters. The CRB eliminated the percentage of revenue fee that many small webcasters used to determine their performance royalty. The move from a percentage of revenue to a per-song rate hits small webcasters the hardest. Royalty rates would increase over 300% for the largest webcasters and as much as 1200% for the smallest webcasters. This kind of rate hike would mean the end of many Internet radio stations that would not be able to stay in business under the crushing new royalty rates. Therefore, I have cosponsored H.R. 2060, the Internet Radio Equality Act. This bill would render the CRB ruling ineffective and would reinstate the percentage of revenue royalty payments. This bill has referred to the U.S. House Committee on Energy and Commerce and the Committee on Judiciary.
Thank you for contacting me about this important issue. I will continue to be a strong voice for you in Washington.
Sincerely,
Mike McIntyre
Member of Congress"
"Straddling the sword of technology..."