Radio

Say bye-bye to internet radio

5 Comments

Broken RecordUpdate: Seth Ben-Ezra has alerted me to some good news on this front from the Radio and Internet Newsletter. Thanks, Seth!

The Copyright Royalty Board decided in March of this year to triple royalty fees for internet radio stations, and the D. C. Court of Appeals today has denied the appeal of opponents of the new fee. Opponents are now urging people to call their congressmen and urge support of the Internet Radio Equality Act. But there’s no way that’s going to happen before these fees (which, incidentally, are retroactive to January 2006) take effect on Sunday, July 15.

Locally, that means WGLT, the jazz/blues NPR station out of Bloomington will likely stop webcasting next week. I haven’t heard what other stations may turn off their audio streaming once the new rates take effect, but the number and variety of internet radio channels will likely diminish precipitously.

It’s evidently the recording industry’s goal to alienate as many music lovers as possible. They’re succeeding.

5 thoughts on “Say bye-bye to internet radio”

  2. Here is where I have a fundamental problem being a musician!

    As a musician, I feel that I should be compensated for my art. If musicians settle for less, then we run the risk of setting a precedent of settling for less which potentially makes it difficult to making a living in music (let it be known I still keep my steady day job ;)).

    On the other hand, I love EVERYTHING about music. I love to listen and really dig the webcast of GLT from work and at home. I love to hear new work and expose my work to as many as possible and this move by the CRB makes this an issue for us all in the professional and semi-professional world of music.

    I struggle with money issues even in the Peoria area. I feel that if I turn down work because of low pay, I feel like I am greedy and in it not for the art but the pay…HOWEVER, if I play for less, then I am a part of the disease that is spreading in this area where local owners either A) CUT live music for jukeboxes and crap like that OR B) Hire some other person who plays for less…

    There really is no unified front locally to fight this (not even through the Musician’s Local Union)…because in order to gig, most of us (myself included) will more often than not, play for less.

    I would love to hear thoughts…thanks for the post CJ…finally something besides City Politics…working on the Spain Train WORE me out to that for a while…:)

  3. In this case, the complaint appears to be two-fold: (a) the rates are unfairly high for webcasters, and (b) the rates are out of proportion compared to other broadcasters. From the SaveNetRadio.org website:

    MYTH: Broadcast radio, satellite radio and Internet Radio pay the same amount of royalties to creators of music, or pay proportionate relative to the size of their businesses.

    FACT: The smallest medium – Internet radio – pays the most royalties; and under the new CRB royalty scheme the smallest webcasters will pay the highest relative royalties in amounts shockingly disproportionate to their revenue.

    • Broadcast radio, an industry with $20 billion in annual revenue, is exempt and pays no performance royalties to record companies or recording artists.
    • Satellite radio, which has approximately $2 billion in annual revenue pays between 3 and 7% of revenue in sound recording performance royalties.
    • The six largest Internet-only radio services anticipate combined revenue of only $37.5 million in 2006, but will pay a whopping 47% (or $17.6 million) in sound recording performance royalties under the new CRB ruling. In 2008 combined revenues will total only $73.6 million, but royalties will be 58% or $42.4 million.
    • Small Internet radio services are essentially bankrupted by the CRB ruling, with most anticipating royalty obligations equaling or exceeding total revenue.

  4. IMHO, Broadcast radio and newspapers are going the way of the dinosaur. Slowly, yes, it will take years. But as a satellite radio subscriber, I never listen to local stations anymore, save WCBU, which I wish was all NPR. (side note – is there an all NPR station in Central IL that I can get in the car in Peoria?) Why should I listen to all the commercials? I have Tivo at home, so don’t need to watch commercials.

    BUT I want local news. I get it off the PJStar’s website and local tv broadcasts. So I don’t see fm type radio disappearing entirely, at least not until digital radios/broadcasting exists and is available more universally.

    But it’s decreasing rapidly in both necessity and demand, fm type radio and newspaper and such – so they seem to be ramping up the ad content. Why don’t they (fm radio and newspapers) decrease their dependence on print and the airwaves and get with the program. The internet is here to stay and it’s the way of the future. Make print and broadcast radio the niche market it needs to become, and it will be more successful.

    I can’t be the only person to have thought of this…

  5. I don’t understand why people still support RIAA-affiliated labels where there is so much good indie music out there. Obviously, there is good major-label music, too, but the indie labels and artists aren’t trying to fsck me over for a quick buck.

    CD Baby, Jamendo, eMusic, and Magnatune are all great places to find fan-friendly music. My personal favorite, though it only serves a single niche, is Rhyme Torrents. Copyleft and public domain ftw!

    Of course, none of this would be such a problem if we had sane copyright laws, but I assume that the MAFIAA will continue to successfully purchase anti-freedom legislation for decades to come.

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