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A Reprieve for Internet Radio

westlake writes "In the wake of Internet Radio's Day of Silence, SoundExchange has proposed a temporary $2500 cap on advance payments 'per channel/per station.' The Digital Music Association responded immediately in its own press release that it would agree to this, but only if the term for the new arrangement were extended to 2010 — or, preferably, forever. On another front, SoundExchange seems aware in its PR that it will have to concede something more to the non-profit webcaster, if it is to avoid Congressional action."

33 of 108 comments (clear)

  1. Still a chunk of change by Anonymous Coward · · Score: 3, Interesting

    And wasn't the contention that they were demanding these fees even from stations that exclusively "broadcast" public domain or copyleft works?

    It's the end of radio, can you hear me now?

    1. Re:Still a chunk of change by clickclickdrone · · Score: 5, Interesting

      >It's the end of radio, can you hear me now?
      Reminds me of "WXJL Tonight" by The Human League from 1980 about the last DJ on the air lamenting his fate as all the other stations have gone over to 24/7 automatic stations without any chat inbetween the songs.
      And now I'm left alone
      I haven't got a word to say
      And youre the one who makes the choice
      To turn me on or turn me off
      But now it really matters

      --
      I want a list of atrocities done in your name - Recoil
    2. Re:Still a chunk of change by Anonymous Coward · · Score: 3, Informative
      And wasn't the contention that they were demanding these fees even from stations that exclusively "broadcast" public domain or copyleft works?

      Technically, they CAN'T LEGALLY go after the PD or copyleft stations. Sure, they can ASK for the fees from these broadcasters, but they cannot win them in court since Soundexchange wasn't specifically hired to protect these copyrights and they have no contract to do so. Attempting to get fees from PD/copyleft broadcasters would be like me sticking up a 7-11 store, telling the clerk "I'm here representing the IRS, hand over all your cash so I can give it to them."

      Yeah, like that would hold up in court.

    3. Re:Still a chunk of change by jaweekes · · Score: 2, Interesting

      Unfortunately that is almost here. Steve-FM in Columbia, SC does not have a DJ, and plays "whatever we want", so no requests. The sadder part is that it's the best station in Columbia, and has risen to be No. 1 in the area because it doesn't have a DJ.

    4. Re:Still a chunk of change by michrech · · Score: 2, Interesting

      Unfortunately that is almost here. Steve-FM in Columbia, SC does not have a DJ, and plays "whatever we want", so no requests. The sadder part is that it's the best station in Columbia, and has risen to be No. 1 in the area because it doesn't have a DJ. What would be cool (though not for DJ's) would be to combine the "music playing robot" with some AI. Set up a phone bank (obviously hooked up to a computer). Link it to your music catalog. Let people call in and "request" a song. Once a song gets x amount of votes, play it in the next rotation.

      Oh, the possibilities with such a system.
      --
      bork bork bork!
    5. Re:Still a chunk of change by beckerist · · Score: 2, Insightful

      I miss the days when radio was orchestrated by the DJ. Instead of there being "playlists" and the DJ just there for random contests and advertisements, the DJ USED to be (well...sometimes was...) a knowledgeable source of the music he was playing, because not only would he PLAY what he LIKED, he generally OWNED it all anyway.

      Now it's all automated and corporately driven, unless you find a good college station: (like www.wicb.org -- listen online and rated very well nationally)

      8 years ago when I called up my local rock station and asked for Queens of the Stone Age, the DJ knew who I was talking about (at that point a year old band with a brand new album.) Now, try to call your local rock radio station and see if they have any Copeland, or Tea Party (now just Jeff Martin, but worth a look!!!) or V.A.S.T....bands that have been putting out multiple albums for YEARS but since they aren't on many major playlists, you'll NEVER hear them from ClearChannel or KROCK...

  2. "didn't realise" by clickclickdrone · · Score: 5, Insightful

    That phrase that they "didn't realise" these stations have thousands of channels just points to how ill researched these organisations are. They're putting in knee-jerk regulatory and charging regimes that just don't fit the real world. It's probably not even crossed their mind that half of them are trying to charge for listeners in countries that don't even fall under their jurisdiction.
    We're going through a painful growing stage that's going to be full of 'WTF?' moments but I'd be surprised if in ten years time, the music industry landscape will be drastically different with self-publishing bands, CDs a rarity (or their replacement format) and the licencing juggernaut that we have right now being relegated to history.
    The only reason I can see for the industry as it stands to exist is R&D but they do so little of that now as to be moot. If a band doesn't hit the big time on their first single/album, they're dropped, no more the nurturing of a band over several albums while they find their stride.
    The HiFi brigade will naturally be less than enthused about MP3 as a primary format but that will no doubt be replaced with some sort of lossless DRM free format by then.

    --
    I want a list of atrocities done in your name - Recoil
    1. Re:"didn't realise" by b0z0n3 · · Score: 3, Funny

      It's probably not even crossed their mind that half of them are trying to charge for listeners in countries that don't even fall under their jurisdiction. Hey, it's America - The whole universe is their jurisdiction.
      --
      (write-line *coolsig*)
    2. Re:"didn't realise" by pointfiftyae · · Score: 4, Funny

      The Copyright Royalty [...] apparently didn't understand that webcasters such as Pandora and Live365 offer thousands of streams.
      Yeah, I thought that too... but I think it's more of a rhetoric trick from TFA's author to make them look Even More Evil/Stupid(TM)... I mean, it's their job, I can't believe they would write regulations about something they don't even understand!
    3. Re:"didn't realise" by clickclickdrone · · Score: 2, Insightful

      I can't believe they would write regulations about something they don't even understand! In the UK that's all the Labour government do - a new law every ten minutes on average too. If this is your first exposure to fools making foolish laws, be happy!
      --
      I want a list of atrocities done in your name - Recoil
    4. Re:"didn't realise" by ShedPlant · · Score: 4, Insightful

      You're far too quick to predict the demise of one of the biggest, richest and toughest corporate organisations in America. It's very naive.

    5. Re:"didn't realise" by morgan_greywolf · · Score: 3, Insightful

      We're going through a painful growing stage that's going to be full of 'WTF?' moments but I'd be surprised if in ten years time, the music industry landscape will be drastically different with self-publishing bands, CDs a rarity (or their replacement format) and the licencing juggernaut that we have right now being relegated to history.


      Not just self-publishing, but self-publishing and somewhat self-promoting. I mean somewhat because a new market will be created for promoters, whom will be hired directly by bands, much like a publicist today. Except that the promoter will do all the promoting jobs, not just talking to the media -- they'll hire advertisers, they'll buy Google ads, they'll hire the necessary people to setup concerts and gigs. IOW, they'll do a lot of the valuable work the record companies do today.

      Call me naive, call me a dreamer -- but the more I look it at it from the perspective of a musical artist, it just seems to be going in that direction.

    6. Re:"didn't realise" by Opportunist · · Score: 4, Interesting

      I'd hope that you're right. But I don't think the dino wants to die. It will cling to its life with all its might, and the mafiaa has a lot of (financial) muscle. As long as people buy hypecrap, this doesn't change.

      Now, internet radio is dealing a serious blow to the mafiaa. Remember that radio is maybe the most influencial medium when it comes to making some kind of music mainstream. You hear it all the time, so it's gotta be good. It ain't the other way around anymore. It used to be (ok, some 50 years or so ago), that music was good, people liked it, so radio played it to attract listeners. Today, it's reverse. Just like in every other industry. Without real competition, and everyone selling you the same crap, you have no choice but to accept the crap and choose from different equally crappy products. Thus it doesn't hurt a radio station to spew hypecrap instead of playing music.

      Internet radio sure hurts this kind of revenue stream. Quite a few internet radio "stations" are ran by people who want to play "their" music. Who have a certain liking and want this to be heard. And they sure as hell won't hype some crap song even for money. If anything, they ridicule it.

      Can you see why the mafiaa isn't really too fond of the idea of internet radio?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    7. Re:"didn't realise" by Red+Flayer · · Score: 3, Insightful

      Sorry to comment on the moderation of the parent post, but I'd say that's hardly flamebait.

      ShedPlant makes a valid point, though it's not to the liking of most people here.

      The record industry is extremely wealthy and has the ear of the extremely powerful. Though it may seem obvious to us that their business model is outdated and is destined to fail, they have the political clout to make sure US legislators prop up their model for a long, long time. They also, via control (or association with those in control) of television media, continue to have the strongest marketing presence.

      It's all fine and dandy to believe that the music industry of the future is just over the horizon, but I don't think it's in the immediate future -- there is simply too much political clout and capital invested in making sure that then status quo is maintained. I think back ten years, and people were saying that by now, we'd already have witnessed the restructuring of the music industry due to technological changes. Ten years from now, I think we'll look back at today, and be saying the same thing.

      This isn't just Monday morning pessimism, the simple truth is that it will be another generation (or two!) before the people who really understand the future of media distribution are in the political power positions necessary to overcome the money being funneled into politics by the media companies. And that's if we're lucky.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  3. Re:I hope something happens soon by pipatron · · Score: 4, Funny

    This post paid in full by Live365

    --
    c++; /* this makes c bigger but returns the old value */
  4. Testing the waters? by FiniteElementalist · · Score: 5, Interesting

    I'm curious if part of this back and forth is the recording industry trying to see how hard they can push on internet radio before they push too hard and it backfires. Effectively killing internet radio in the US seems like it would be pretty far beyond that point, as it would be hard for congress to look the other way on that. The temporary deal could then just be to ratchet down the tensions so they can find a more viable way to profit from or inhibit internet once it falls out of public awareness.

    Or it could just be that they are incompetent with dealing with internet distribution of music. That wouldn't be unprecedented.

    1. Re:Testing the waters? by morgan_greywolf · · Score: 4, Interesting

      Both. The recording industry hates the Internet precisely because it will eventually eliminate their business model. That much is obvious. I don't think it's like the recording industry wants to eliminate the Internet as a means of music distribution -- they just want to slow it down enough until they can ensure that they will continue to be a relevant part of music distribution.

      In the end, I don't think they will ... the tide's already turned against them. But watching the show of them going down is going to be spectacular.

    2. Re:Testing the waters? by Gorshkov · · Score: 3, Insightful

      Effectively killing internet radio in the US seems like it would be pretty far beyond that point, as it would be hard for congress to look the other way on that.
      But they won't kill internet radio in the US. They'll kill internet radio BASED in the US.

      Anybody want to rent some of my Canadian bandwidth for streaming to US customers?
    3. Re:Testing the waters? by beyondkaoru · · Score: 3, Interesting

      they just want to slow it down enough until they can ensure that they will continue to be a relevant part of music distribution. they (and the music industry is certainly not the only one) don't want to slow down the internet, they want to make the internet like television. perhaps inadvertently, stuff like nat has done it for them; many people don't get the ability to receive tcp connections, and to receive udp (from people you didn't first send a packet to) one often has to do weird little dances like stun. if you can't receive connections even though you want to, well, we've broken the original idea behind the internet. there's nothing wrong with having a firewall that blocks incoming connections... there is however a problem with it being forced on people.

      so, making programs in which willing computers can talk to each other -- you know, the whole reason we have the internet -- is harder. not impossible, certainly, but it is at least more annoying.

      on the web, unlike the raw internet, there are essentially producers and consumers: a model long standing industries are used to. a client requests a server to do stuff. and as we've seen both here and elsewhere, the existing industries would like very much to be the _only_ producers.

      with the internet, we have the opportunity to do more than just port 80, and by gosh we should.
      --
      the privacy of one's mind is important.
      you do have something to hide.
  5. Just say no. by WindBourne · · Score: 4, Interesting

    These stations need to start up alternate stations that make use of indies. The only reason why soundexchange/riaa is agreeing to this, because they are realizing that they killing the golden goose.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:Just say no. by zygotic+mitosis · · Score: 4, Interesting

      This is the truth. Besides, we all know that indie bands are better. Who wouldn't prefer Minus the Bear to Fall Out Boy? K-OS to R Kelly? Anything to Nickelback? I hope the industry realizes that the successes of popular bands like Wilco and Pearl Jam as independent artists are not flukes.

  6. Heh Heh Heh by LordPhantom · · Score: 2, Interesting

    FTA: "DiMA would agree to a $2,500 per-service cap for the entire term of the CRB ruling (through 2010), but not the partial-offer presented to us in writing, which would terminate in 2008.

    Why not longer, DiMA? If I were SoundExchange, I'd be amused with this - the longer they can make 2,500 the maximum, the more erosion of actual costs (inflation) will happen. $2,500 isn't what it used to be.

  7. Re:I hope something happens soon by ClaraBow · · Score: 2, Interesting

    Okay, fair enough, it sounds like an advert, but I was just trying to say that sites like Live365 offer great a variety of radio stations, and they are invaluable for people who like to explore different kinds of music in a legal and inexpensive manner. But I concede to the fact that I sounded like a front person for Live365, but I'm jut a fan.

  8. Finland.. by Anonymous Coward · · Score: 5, Interesting

    Around 2000, when net radios were starting to pop up, the finnish equivalent of RIAA killed off all net radio activity in finland exactly the same way.

    Now - last week - they've turned around and are excited to offer this brand new venue for artists to reach their audience!

    It would be interesting to know the details of the new contract..

  9. Let internet radio die by 0xdeadbeef · · Score: 4, Insightful

    We should be helping the music cartels kill themselves, not trying to convince them of the stupidity of their actions. And I would rather my beloved internet radio stations go out as martyrs than forever hear them begging me for donations that will just end up going to the RIAA mobsters.

    1. Re:Let internet radio die by jez9999 · · Score: 2, Interesting

      I'd rather see them going offshore, surviving whilst the RIAA still dies anyway.

  10. Why SoundExchange? by EPAstor · · Score: 4, Interesting

    Does anyone have any information as to what part of the law empowers SoundExchange to collect royalties for artists who do not have an explicit agreement with them? Personally, this is starting to seem like the most worrying thing about the state of US copyright, given how many ties I've heard cited between SoundExchange and the music distribution companies. It seems strange that this organization is allowed to collect on other people's work, especially since I've been given to understand that SoundExchange will not pay out royalties to the artist unless the artist in turn pays for a SoundExchange membership...

  11. "it would agree to this" by Live_in_Dayton · · Score: 3, Informative

    Warning, I got a really disgusting NSFW picture when I clicked on the phrase "it would agree to this". I would advise that the link be deactivated.

  12. NSFW GOATSE by casings · · Score: 5, Informative

    GOATSE ALERT!!!!!

    Don't click the "it would agree to this link" it has either been hacked or the picture redirected to goatse!

    Warning!!!!!!

  13. Fight the Music police! by johnarama · · Score: 2, Informative

    I don't like this idea of royalties. Radio (online or off) PROMOTES music, so that listeners are able to decide what they want to BUY! Music fans have a new option for hearing and sharing music, there's encrypted file sharing apps, such as GigaTribe ( http://www.gigatribe.com/ ), that let people share music without big brother looking over their shoulder.

  14. The panel is incompetent by Overzeetop · · Score: 4, Insightful

    Simply stated, the (three, five?) judge panel setting the ruling should be sacked. It is clear that they have absolutely no business setting royalty payments, as they are entirely ignroant of the underlying industry which they are ruling on. The expert for the stations stated, in effect, this exact outcome and they either didn't understand the technology enough to realize the implications, or were so biased towards one party that they chose to ignore the information. Either way, they should be replaced with members which understand the industry and the conditions present.

    Of course, that won't happen. Incompetence and ignorance are not grounds for removing a judge, and from the prespective of the current administration they played the game very nicely.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  15. Re:"non profit broadcaster?" by wuzfuzzy · · Score: 2, Informative

    Do you have a clue what this is all about? The main problem with these new rate is that all stations must pay for each song per channel PER LISTENER. All the stations are willing to pay a percentage of income just like SAT radio does, even though Traditional radio doesn't pay one red cent.

  16. Re:"non profit broadcaster?" by lessermilton · · Score: 2, Informative

    non-profit (at least the pure term) refers to stations like your local public radio.

    Radio's customers are NOT the listeners. Their customers are their advertisers. Their commodity is YOU, the loyal listener. Their product is not music, music is simply one of their expenses.

    Non-profit radio stations don't really have customers. At the most you could call either the listener, or the artists the customers. Listener, most likely, as you're the one who may or may not donate to them.

    Non-profit radio stations, by virtue of who and what they are, (AFAIK) are legally only allowed to play music that they have permission to play. Indie bands/copyleftists who don't mind if people share their music because they know the money comes from playing live, rather than music purchases. Just ask any big name artist where the major % comes from - records or concerts.

    And if you want to own a physical copy of the CD, you can usually contact the artist directly, and 100% of the profits go to them, rather than 2-3c on the $15+.

    --
    I wish I had a witty .sig