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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."

15 of 108 comments (clear)

  1. "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 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!
    2. 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.

    3. 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.
  2. 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
  3. Re:I hope something happens soon by pipatron · · Score: 4, Funny

    This post paid in full by Live365

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    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.

  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. 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..

  7. 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.

  8. 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...

  9. 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!!!!!!

  10. 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?