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New Royalty Rates for Webcasts
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Geomancer
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PostPosted: Mon Mar 05, 2007 10:28 pm   Post subject: New Royalty Rates for Webcasts Reply with quote


I came across something online today that is quite unsettling for anyone who enjoys internet radio.

Kurt Hanson's RAIN - March 2nd, 2007

The link is to a newsletter for internet radio broadcasters and spells out what the new ruling by the Copyright Royalty Board means. I will let the article explain the details.

Thankfully, it appears that stations which allow listeners to pick the playlist are exempt from the changes. But I still think it worth mentioning.

Some people are expressing outrage that the royalties, which don't apply to FM broadcasts, will spell doom for some internet stations.

Now, I am all for paying an artist their dues. There is nothing I would rather spend my money on than music that has had/ will have an impact on my life. I support the musicians I listen to by buying their goods or attending their performances and encourage everyone else to do the same.

But it seems to me that the record labels, or collectively - the RIAA, is so frenzied over their plummeting revenues over the last few years that they are striking out, grasping for whatever they can to gain back some ground.

And they continue to make bad choices.

Choices that, I believe, will only perpetuate their dilema. See, I think internet radio aids in artist appreciation and attracts new listeners to purchase recordings. Artists who are largely overlooked by terrestrial broadcasters. And they are only shooting themselves in the foot by making it harder for webcasters to do what they do best: bring new music to unfamiliar ears, and spread it's popularity.

Now, the exact wording of the ruling is to be released soon and I can only hope that some changes will be made before this all goes into effect. But I at least hope that I have done some small part to spread the word and let others know about what is going on.

I love listening to Streaming Soundtracks and Entranced.FM (and maybe, once in a while, some other stations Embarassed ) and have enjoyed making my small contributions. Maybe I should be doing more... Not to be an alarmist, but I've been paying attention to the RIAA over the past few years and its actions are reminiscent of the Salem witch trials! (I KNOW it sounds crazy, but I see it! Shocked )

Again, because the 24seven family graciously allows us to make our own music selections, it won't be affected by this ruling. But changes ARE coming to the industry and I want to help before things get even more out of control.

JERIC (et al) - What is your position on this? Do you have any concerns? If so, what can be done?
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PostPosted: Tue Mar 06, 2007 9:20 am   Post subject: Reply with quote


I agree with you. But this actually affects us. You know who is not affected, webcasters that don’t pay royalties. It would seem to make more sense to focus on trying to get more webcasters to actually pay royalties (like our competition) rather then focusing on the ones that actually do. They could instead pay their lawyers to start with SHOUTcast by writing “non-payers” friendly letters that they should really be paying royalties (give them a list of ways to license: LoudCity, Live365, SWCast/JPL Program, or individually). For the ones that do not comply the letters can become increasing aggressive until it’s eventually a “cease and desist”. They have nothing to lose by doing this and everything to gain, e.g. more money, educating people about properly compensating artists, and getting their agenda across with good PR.

Would it make more sense for me to raise the rates for VIP to $12/month instead of trying to get more VIPs? Absolutely not! They can’t get blood from a stone. We’ve been doing this for going on 6 years and we still can’t afford our first employee, ME! I’m not going to stop trying though.

This is going to have huge negative impact on the industry. This could take an already volatile Live365 down for the count. And then they would miss out on hundreds of thousands of dollars of revenue per month. Maybe it will take something like that to happen for them to wise up. It makes me wonder if this movement is being lobbied by Satellite radio since Internet Radio is its biggest competitor. The stations that do survive will be forced to cram more ads down your throat, essentially becoming like terrestrial radio. One of the main appeals of Internet Radio is most stations are ad free.

Hopefully this will be appealed.
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PostPosted: Tue Mar 06, 2007 6:14 pm   Post subject: Reply with quote


That is pretty ridiculous, particularly the analysis on the article linked to that estimates that the new royalties will be over 100% of most station's revenue.

Fantastic logic there.
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PostPosted: Wed Mar 07, 2007 2:42 am   Post subject: Reply with quote


After reading the article again, I must say I'm a bit upset.

Is there something we can do? Sign a petition? Boycott the RIAA in some way? Send them a mail?
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PostPosted: Wed Mar 07, 2007 6:28 am   Post subject: Reply with quote


I got this from Radio Paradise's website:

"What can you do? Sign our online petition and open letter to the US Congress. Then please send an email message to your Congressmembers. You can use our suggested text, change it, or write your own message. We then suggest that you print your email (you'll get a copy) and mail it to your Representative and Senators and, if possible, call their offices. You can look up their addresses and phone numbers here."
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PostPosted: Wed Mar 07, 2007 8:07 am   Post subject: Reply with quote


deja vu
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PostPosted: Wed Mar 07, 2007 8:45 am   Post subject: Reply with quote


Caliburn wrote:
déjà vu


Unfortunatly, yes. And politicians don't really understand what are the stakes due to the very technical nature of these law projects...
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PostPosted: Wed Mar 07, 2007 5:54 pm   Post subject: Reply with quote


http://www.savenetradio.org/
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Caray VIP (subscribed member)
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PostPosted: Thu Mar 08, 2007 10:47 am   Post subject: Reply with quote


It's frustrating not to be able to do something us 'foreigners'.

BBC says the rate would go from 0.08 cents per track to 0.19 cents by 2010.

Caray
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PostPosted: Thu Mar 08, 2007 12:33 pm   Post subject: Reply with quote


Caray wrote:
It's frustrating not to be able to do something us 'foreigners'.

BBC says the rate would go from 0.08 cents per track to 0.19 cents by 2010.

Caray


Seems like there are several problems. Firstly the 0.08 cents per song (according to the linked article) would be more than 100% of the revenue of most stations.

Secondly, this is enacted retrospectively so lots of people are going to be faced with enourmous bills they can't possibly pay.

Thirdly, like you say the year on year increase is absurd. It starts out bad and gets much worse.

Shame as a non US citizen there isn't much I can do.
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PostPosted: Mon Mar 12, 2007 4:15 am   Post subject: Another Internet Radio Petition Reply with quote


I encountered another petition to save internet radio at Save the Streams.org:
http://www.savethestreams.org/
Very user-friendly.
Also available there are links to write your congressmen/women.
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PostPosted: Tue Mar 20, 2007 9:42 am   Post subject: Reply with quote


Article I found today

Quote:
"NEW YORK (AP) -- A wide array of broadcasters and online companies on Monday challenged a ruling from a panel of copyright judges that they say could cripple the emerging business of offering music broadcasts over the Internet.
Clear Channel Communications Inc., National Public Radio, and groups representing both large and small companies providing music broadcasts online were among those asking the Copyright Royalty Board to reconsider key parts of its March 2 ruling."


Looks like the wheels are turning on the opposition to this flawed ruling. Clear Channel is "rather large" and hopefully their resources, combined with others will help to convince lawmakers and others of the problems this will create.

The Music companies have lobbyists in DC, is there a Webcaster Lobby group to present our interests to capitol hill?

J.
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PostPosted: Tue Mar 20, 2007 11:37 am   Post subject: Reply with quote


http://biz.yahoo.com/ap/070319/internet_radio.html?.v=1

I really hope that Clear Channel can pull some major strings. I signed the online petition.. i hope it helps!
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PostPosted: Sat Mar 24, 2007 2:01 pm   Post subject: Reply with quote


As already mentioned, NPR is involved in this too, this article gives an idea of to what degree, and how motivated they are. Cross your fingers.

http://consumerist.com/consumer/riaa/npr-vs-the-riaa-244318.php

...and here's an analysis of the numbers involved:

http://www.boycott-riaa.com/article/21607
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PostPosted: Tue Mar 27, 2007 12:35 pm   Post subject: Reply with quote


I hope that folks realize that SST won't be able to operate under these new royalty rates, with a very conservative estimate of annual costs at $22,426! Shocked

$.0008 x 200 average # of listeners x 16 songs/hr. x 24 hrs. x 365 days

(Perhaps one of the admins can estimate the costs more accurately)

If you're in the U.S., please sign a petition or email/mail a letter to your elected representatives because you probably won't be able to enjoy this station or other Live365 stations in the future unless the royalty rates are renegotiated.

I'm sending my letters out too.
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