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Internet Radio saved?

Written by Andre Yoskowitz (Google+) @ 29 Sep 2008 22:27 User comments (4)

Internet Radio saved? The House of Representatives has unanimously passed the bill that will greenlight an agreement between Internet Radio companies and SoundExchange, the nonprofit organization that collects royalties for the record labels and the RIAA.
In March 2007 the federal Copyright Royalty Board negotiated new royalty rates for digital broadcasters that would have increased the rates to levels where the Internet Radio companies could no longer stay in business. Recently however, before the new rates come into effect, the two sides have been negotiating a deal and the deal seems imminent. There is however, one problem, and that is the fact that Congress is preparing to adjourn until the elections and "because Internet radio companies operate under a government license, any final agreement needs congressional authorization."

The new bill that passed means the sides can continue negotiatons until February 15th of next year and makes sure that any deal agreed upon while Congress is in recess is legally binding.

Earlier this week, the most popular of Internet Radio sites, Pandora made a call for help asking to get the bill passed through and it seems to have worked. Tim Westergren, founder of Pandora said that if the rates go up then over $17 million of Pandora's estimated $25 million revenue will go to paying off royalties.

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4 user comments

129.9.2008 23:10
1bonehead
Inactive

NAB bites the dust (for now)

This message has been edited since its posting. Latest edit was made on 29 Sep 2008 @ 23:22

The BPI Are: SONY, UNIVERSAL, WARNER GROUP, EMI.
The RIAA Soundexchange Are: SONY, UNIVERSAL, WARNER GROUP, EMI.
The IFPI Are: The same anti consumer lot as listed above!
The MPAA Are: SONY, UNIVERSAL, WARNER GROUP, DISNEY, PARAMOUNT, FOX.

229.9.2008 23:17

I don't like CCR anyhow, whay to go Pandora. this should set an example to other Streaming music services.

31.10.2008 10:08
atomicxl
Inactive

Quote:
Tim Westergren, founder of Pandora said that if the rates go up then over $17 million of Pandora's estimated $25 million revenue will go to paying off royalties.
Does anyone know what the rates are for internet plays vs radio plays. When all you do is play music, I don't think it should be too shocking that the bulk of your expenses are music associated.

44.10.2008 23:00

I certainly hope the license fees are not increased yet again. When license fees were first put on internet radio, thousands upon thousands of small non-profit (by fact if not by choice) were forced offline. It was a terrible loss of diversity of programs, points of view, on site information. True enough, the current pros have done pretty well and there does remain a somewhat smaller set of choices.

This is the only "free" media in the world. Most of the english speaking world get all of their news from five or six media conglomerates, all owned or controlled by right wing conservative, rich white men. If the increase in royalties were to be paid to the artists ... sure, I'd be all for the increase. Alas, it is to "enhance" profitability" for the record companies, distributers, the RIAA, screw that!

No Increase!

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