Save Internet Radio

The future of Internet radio is in doubt. Royalty rates for webcasters have been drastically increased by a recent ruling and are due to go into effect on July 15 (retroactive to Jan 1, 2006!). If the increased rates remain unchanged, the majority of webcasters will be bankrupt and immediately forced silent.

Last March's decision by the Copyright Royalty Board (CRB) increased Internet radio's royalty burden between 300 and 1200 percent. 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. It doesn't sound like much but it'll make it impossible for most webcasters to operate and will make the remaining outlets more reliant on sweetheart licenses that major record labels will be happy to offer as long as the webcaster permits the company to influence the programming and playlist.

As internet DJ Jonathan Tesser wrote in a Wall Street Journal online forum on internet radio, "I've been operating a free-form radio station (www.luckydogradio.com) with Live365 for more than six years, and it's clear that the future of Internet radio is in grave danger if this decision by the CRB is not modified in some way."

Internet radio is taking off. In just the last year Internet radio listening increased from 45 million to 72 million listeners each month. That's a lot of earlobes! Moreover, beyond the mass audience, the diversity of programming is breathtaking and provides significant promotional and royalty opportunities to independent labels and artists that are unavailable on broadcast radio.

But the CRB's decision would destroy this world. The only hope is that sufficient grassroots pressure can be applied in support of the Internet Radio Equality Act, which was recently introduced in both the House and Senate (by the unlikely duo of Senators Ron Wyden, D-Oregon, and Senator Sam Brownback, R-Kansas) to save Internet radio. The bill would put internet radio on par with satellite radio and undo a prohibitive $500 per channel minimum royalty fee as well as undoing other provisions of the CRB decision.

Please implore your senators and reps to co-sponsor and vote in favor of the Internet Radio Equality Act; add a Save Internet Radio banner on your website or blog and ask your friends to join the coalition to save internet radio.

Comments (24)

1. Internet radio, as the tech shrinks even further, likely to be THE mode of transmission in the future....so, good on yer, PETER.

   BTW, how about that Sam Brownback?!?!?! The guy's as Right as they come on the social issues, but is Mr. Internet Freedom, works hard on the Darfur issue, and worked with guys like Kennedy (on entry visas) and John Lewis (on an African-American museum)!

   Now, if we could just convince him that he evolved and didn't pop into existance 10,000 years ago!...hehe

   Posted by Mask at 05/21/2007 @ 3:21pm

2. Another cause! Who NEEDS, what's it called, internet radio? Anyhow, I haven't for half-a-century and, LOL, hope to continue that for another half century!

   Peter Appleseed, you are spreading the activist pool too thin!

   Posted by Happy at 05/21/2007 @ 4:04pm

3. Posted by HAPPY 05/21/2007 @ 4:04pm

   For many people, Internet Radio is the way they find out about new music. For example, check out All Songs Considered. It's an amazing podcast for people that love music.

   http://www.npr.org/programs/asc/

   Not to mention KCRW's Today's Top Tune or the many other great podcasts for music. While you may not like most of what you hear, there is a lot of great stuff out there - and record companies are basically trying to strangle culture for profit.

   The funny thing is I buy the music I hear on these programs. These people don't even understand that enabling people to hear songs drives purchases and ticket sales. It's brain-dead.

   Posted by srjenkins at 05/21/2007 @ 5:27pm

4. Here, Here.

   Regulation be damned. Let us have our (air) space.

   Posted by USAPRIDE at 05/21/2007 @ 7:34pm

5. I agree..dump the regs and free that radio...Keep the Internet free and fair....and fair without "Fairness Doctrine"...

   Posted by john maasch at 05/21/2007 @ 7:52pm

6. Good job again Rothberg! You continue to ably monitor our national legislature for opportunities to advocate for freedom(s). And in this case the dunning authority of the Copyright Royalty Board frankly bespeaks the "power of the purse" to chill or freeze free expression over the "public airwaves."

   Posted by lewwelge at 05/21/2007 @ 8:10pm

7. Thank you LEW. I'm glad to see some cross-political alliances being cobbled together on this thread. This is one issue that should appeal to leftists and libertarians alike!

   Posted by Peter Rothberg at 05/22/2007 @ 12:37pm

8. Posted by HAPPY 05/21/2007 @ 4:04pm

   NeoCon AND Neo-Luddite. Good for you....now crawl back into your cave, throw another dung chip on the fire are dream about chasing mammoths or something. Fighting the future won't stop it from coming.

   I listen to internet radio every day and say that my quality of entertainment will be greatly decreased by this onerous bit of legislation.

   Posted by leftofcenter at 05/22/2007 @ 1:52pm

9. re: Posted by SRJENKINS 05/21/2007 @ 5:27pm

   I listen to interned radio all day, every day. I keep a pad in my top desk drawer in my office, and when I hear something I really like, I write down the artist and song so that I remember them. I then purchase the CD's by these artists when I get a chance. So, I can attest to the impetus that internet radio can provide for CD purchases. It's a great way for newer or less mainstream artists to be heard and appreciated, due to the niche programming typical of internet radio.

   Posted by mcmahan at 05/22/2007 @ 2:41pm

10. ...Fighting the future won't stop it from coming...

    Posted by LEFTOFCENTER 05/22/2007 @ 1:52pm

    Hey, watch it, you got me all wrong! I AM a Neanderthal, not Neo-xyz, when it comes to modern entertainment!

    As for the Future part, I fund the directions they may develope while making money (most of the time)! Do your part, go buy some fuel cell, solar or LNG stocks!

    Posted by Happy at 05/22/2007 @ 4:17pm

11. Please consider the other side of this one- do you know who benefits the most if the new rates are rolled back? Clear Channel and all of corporate radio- they will save millions.

    Now how about who benefits if the new rates go into effect: songwriters and publishers. As a BMI songwriter, I think that it is OK to be paid when stations broadcast MY music; it's sure not happening now for any Internet play...

    Posted by tubaboy1 at 05/22/2007 @ 4:21pm

12. do you know who benefits the most if the new rates are rolled back? Clear Channel and all of corporate radio- they will save millions.

    Now how about who benefits if the new rates go into effect: songwriters and publishers. As a BMI songwriter, I think that it is OK to be paid when stations broadcast MY music; it's sure not happening now for any Internet play...

    Posted by TUBABOY1 05/22/2007 @ 4:21pm

    Curious if THIS "down-side" was going to be raised.

    Sorry, TUBABOY, you creative types are bound to get screwed over. My advice...get into live performances.

    With the technology advancing (hell, who CAN'T find a "Napster" overseas site these days and burn a CD or download to an IPod)...copyright won't mean crap in a few years (if it does now!).

    Posted by Mask at 05/22/2007 @ 4:25pm

13. With the technology advancing (hell, who CAN'T find a "Napster" overseas site these days and burn a CD or download to an IPod)...copyright won't mean crap in a few years (if it does now!).

    Posted by MASK 05/22/2007 @ 4:25pm

    I DO sympathize w/TUBABOY1's plight! Personally, I buy `Greatest Hits' CDs regularly.

    While I have ZERO interest in accessing all internet options, I'll say this: I don't know how my two kids does it but they regularly and routinely burn DVD movies and songs without paying a dime...of course, ignoring my admonitions....

    MASK, they are NOT overseas!

    Posted by Happy at 05/22/2007 @ 4:48pm

14. MASK, they are NOT overseas!

    Posted by HAPPY 05/22/2007 @ 4:48pm

    Legally, the BIG "download" sites can't operate within the US without paying royalties. Small indie ones obviously exist (like home breweries). Big download sites can operate in Aruba or Nigeria for that matter and replicate "Napster" and get away with it.

    Point is...copyright is nearly impossible to enforce in the world of the Internet.

    Posted by Mask at 05/22/2007 @ 7:58pm

15. Interesting contrast of stakeholder views here. Thanks Zero for describing my entering assumption with such technical virtuosity. And thank you, Tubaboy (ouch!) for your artistic expression.

    Mask, lvlibel, happy, Us a pied: here's your opp to ungently urge Tub's "getting a job!"

    Posted by lewwelge at 05/22/2007 @ 8:57pm

16. And Peter, your efforts bespeaks your worth and THaT speaks for itself, sir. However, I'm at a point in life where I'd almost pride myself on cross-dressing than on being "cross politically" allied. It's like F. Scott Fitzgerald quoted Jesus in "This Side of Paradise:" you're either with us, or agin' us.

    Posted by lewwelge at 05/22/2007 @ 9:01pm

17. I'm not much of a hockey fan but this month I listened to Buffalo's broadcasts of the play-off games with announcer Rick Jeanneret. The guy is something else, a living-legend. I even heard the commercials. I never listen to the radio at home or in the car. I listen to some jazz stations which are public stations over the Internet but not to often because the CD player is going. What I'm trying to say here is that little bit of pleasure I got by listening to those games are going to soon be history. I'll bet $10 bucks the Sabres don't make the finals next year and a hundred bucks those broadcasts will be silent on the Internet next year! Ah yes America, enjoy you cable television; 500 channels and one agenda.

    Posted by jazzfan at 05/22/2007 @ 9:28pm

18. Mask, lvlibel, happy, Us a pied: here's your opp to ungently urge Tub's "getting a job!"

    Posted by LEWWELGE 05/22/2007 @ 8:57pm

    LEW, he's got a job....unfortunately, it's a "buggy whip maker in 1900" job.

    As tech improves, it will be nearly impossible for him to make his money on data imprinted onto a solid medium that can be stored and transmitted on the Internet.

    I hold him no animosity or ill-will. It's why I suggested he make his move to live performances or writing songs for live performers...it's the only way he can survive.

    BTW, still waiting on your recinding your previous love for PLUNGER's insights, in light of his stupid predictions of "World War-3 and martial law by March 30th".

    Posted by Mask at 05/22/2007 @ 10:16pm

19. It's like F. Scott Fitzgerald quoted Jesus in "This Side of Paradise:" you're either with us, or agin' us.

    Posted by LEWWELGE 05/22/2007 @ 9:01pm

    Didn't Dubya say that too???

    Posted by Mask at 05/22/2007 @ 10:17pm

20. Good point Jazzfan. Variety being the "spice of life," conformity becomes the "banality of evil" n'est ce-pas?

    Posted by lewwelge at 05/22/2007 @ 10:40pm

21. ...."download" sites can't operate within the US without paying royalties....

    Posted by MASK 05/22/2007 @ 7:58pm

    My bad, you did say "overseas site"!

    Posted by Happy at 05/22/2007 @ 11:19pm

22. the definition of internet radio is an audio broadcasting service transmitted via the Internet. Radio [takeinfo.net] net [search2info.net] Broadcasting on the Internet is usually referred to as webcasting since it is not transmitted broadly through wireless means but is delivered over the World Wide Web.

    Posted by hattaro at 05/23/2007 @ 06:40am

23. Posted by HATTARO 05/23/2007 @ 06:40am

    Hey, I still sometimes call music disks...."albums"!

    hehe

    Posted by Mask at 05/23/2007 @ 07:47am

24. the definition of internet radio....

    Posted by HATTARO 05/23/2007 @ 06:40am

    Thanks for the def.! Peter probably should had a little blurb on it for us old geezers.

    I guess I had used this new fangled technology before for financial webcasts.....about as frequently as full solar eclipses!

    Posted by Happy at 05/23/2007 @ 11:32am