Being a fan of Internet radio from way back, I’m constantly disappointed (though not surprised) by the music industry’s effort to crush an exciting medium that promises continued growth and distribution of new music. It seems like the industry would be doing all it can to foster the development of a potentially huge new income area. Instead, they’re hording all their chips and, in predictably myopic fashion, refusing to look beyond what has worked in the past. Their latest attempts are especially disturbing:
On March 2, 2007 the Copyright Royalty Board (CRB), which oversees sound recording royalties paid by Internet radio services, increased Internet radio’s royalty burden between 300 and 1200 percent and thereby jeopardized the industry’s future.
At the request of the Recording Industry Association of America, the CRB ignored the fact that Internet radio royalties were already double what satellite radio pays, and multiplied the royalties even further. The 2005 royalty rate was 7/100 of a penny per song streamed; the 2010 rate will be 19/100 of a penny per song streamed. And for small webcasters that were able to calculate royalties as a percentage of revenue in 2005 – that option was quashed by the CRB, so small webcasters’ royalties will grow exponentially!
It’s the little guys who are out there promoting new and established acts in their online broadcasts. And they are already paying for the ability to do so; few make a profit and many are paying out of their own pockets for nothing more than the enjoyment of contributing to the global music community.
We have the opportunity to squawk here. You can voice your disapproval of these draconian new rates by calling or writing your elected official and telling them what a steaming pile of dung this whole thing is.
Check out SaveNetRadio.org for more information.
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