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Internet radio broadcasters dealt setback


Ed A.

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Internet radio broadcasters dealt setback

 

Well, it's now official, royality rates have drastically increased. I guess all good things must come to an end, and this looks like it might be the end for Internet radio. It's amazing how stupid the record companies are. Here's a new method to promote their "product", and they sabotage it. No wonder they're losing money.

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Yeah... I just got an email from Pandora...

 

It's really shortsighted, if you ask me.

 

Greed so often gets in the way of enlightened self-interest.

 

 

But if the big record companies weren't always shooting themselves in the foot, we probably wouldn't even recognize them.

 

Unfortunately, this one hurts some really decent folks out there who were providing an excellent service for music lovers and musicians.

 

But -- because they couldn't be controlled and bribed into paying what the labels want them to play -- I guess they had to go.

 

Blame the toadies in the former Congress who passed the laws that make this possible.

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Here's a link to the public notice:

 

Now available: Determination of Rates and Terms for Webcasting for the License Period 2006-2010 in [Docket No. 2005-1 CRB DTRA] Digital Performance Right in Sound Recordings and Ephemeral Recordings

 

from

 

the Library of Congress / Copyright Royalty Board

http://www.loc.gov/crb/

 

I think this is interesting:

 

B. PARTIES TO THE PROCEEDING

The parties to this proceeding are: (i) Digital Media Association and certain of its

member companies that participated in this proceeding, namely: America Online, Inc. (

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This is from an e-mail forwarded to me:

 

Hi, it's Tim from Pandora,

 

I'm writing today to ask for your help. The survival of Pandora and all of Internet radio is in jeopardy because of a recent decision by the Copyright Royalty Board in Washington, DC to almost triple the licensing fees for Internet radio sites like Pandora. The new royalty rates are irrationally high, more than four times what satellite radio pays and broadcast radio doesn't pay these at all. Left unchanged, these new royalties will kill every Internet radio site, including Pandora.

 

In response to these new and unfair fees, we have formed the SaveNetRadio Coalition, a group that includes listeners, artists, labels and webcasters. I hope that you will consider joining us.

 

Please sign our petition urging your Congressional representative to act to save Internet radio: http://capwiz.com/saveinternetradio/issues/alert/?alertid=9631541

 

Please feel free to forward this link/email to your friends - the more petitioners we can get, the better.

 

Understand that we are fully supportive of paying royalties to the artists whose music we play, and have done so since our inception. As a former touring musician myself, I'm no stranger to the challenges facing working musicians. The issue we have with the recent ruling is that it puts the cost of streaming far out of the range of ANY webcaster's business potential.

 

I hope you'll take just a few minutes to sign our petition - it WILL make a difference. As a young industry, we do not have the lobbying power of the RIAA. You, our listeners, are by far our biggest and most influential allies.

 

As always, and now more than ever, thank you for your support.

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I wonder how this affects the XM and Serius Internet stations?

 

 

XM & Sirius radio have been talking about a merger for months. Supposedly it's a done deal, but it still needs approval by the Department of Justice and FCC to ensure it does not violate antitrust laws.

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Over the air radio does pay royalties. I know that for a fact. I used to own stations. The amount is based on the total gross sales of the station. It is not for just the music you play, but the entire catalogue of ASCAP, BMI, SESAC et al. If you play one song, you must abide by the terms of the contract. They must also pay additional fees for internet radio. They placed an addendum in the contract. I have always thought the whole the whole thing was nuts. Radio is an intregal part of record sales. That is why radio went to payola. They just wanted their own money back. I mean the real payola, not some jock on the side. Why would record companies want to limit promotional time for their records.

 

As for satellite, Clear Channel part of the "Radio Broadcasters" in the proceedings is the majority owner of XM which plans to merge with Sirus if the FCC will approve it. How do you think they will fare?

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XM & Sirius radio have been talking about a merger for months. Supposedly it's a done deal, but it still needs approval by the Department of Justice and FCC to ensure it does not violate antitrust laws.

 

 

Yes, I started a thread on the merger a couple months back. What I am wondering is if they have to pay the increased rate for the Internet simulcasts or if they got a waiver. When this whole thing came up a year or so ago the target for rate increase was going to be "Internet ONLY" stations.

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Yes, I started a thread on the merger a couple months back. What I am wondering is if they have to pay the increased rate for the Internet simulcasts or if they got a waiver. When this whole thing came up a year or so ago the target for rate increase was going to be "Internet ONLY" stations.

 

 

Dollars to doughnuts..... follow the money. My guess is that once the merger is finalized, they will have to pay just like everybody else. IMHO, this brings up an interesting point... that being original programming. Talk radio has exploded in the past 15 years or so thanks to the likes of Rush Limbaugh & Howard Stern. If I'm correct, ASCAP, BMI, SESAC etc. can't touch talk shows because most of that format is rarely rebroadcast. I'm pretty sure that shows like these already pay a potload of cash for bumper music. Thoughts?

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