Internet Radio Royalty Hike — AKA More Stupidity
I spoke to business reporter Hiawatha Bray at The Boston Globe earlier this week about the new internet radio royalty rate increase. The resulting article is in the Boston Globe today. You can read it at boston.com. And hey, they even LINKED to Exploit Boston. This is no small accomplishment for the Globe, apparently — sometimes they link, but most times they do not.
A few details to clarify: Exploit Boston isn’t a music blog but it does include an event blog, internet radio station, photo collective and monthly board game night. Exploit Boston Radio has a couple hundred bands in rotation with 524 songs in the library. And there are dozens of listeners per day not total/overall. (What a sad day that would be if 24 people total listened to the station in one month. Ha!)
I’m all in favor of artists being paid for their work. But the way this rate increase is structured means there’s a $500 per station minimum and it is only charged to internet radio broadcasters and not terrestrial radio. Obviously this means small broadcasters are likely to go off the air and they are the ONLY STATIONS playing new/emerging/independent bands in regular rotation. Awesome. So if you are tired of hearing the same Top 40 bands on regular radio, now you can tune into internet radio and hear the same music over and over.
I was hoping Hiawatha would include my comments about podcasting. I really prefer to run Exploit Boston Radio through Live365 as an internet radio station. But if these rates really go through, I’m either going to have to shut down the station entirely or set it up as a podcast. And I really, really don’t want to run it as a podcast. The amount of time it would take to set that up and maintain would be annoying at best. I pay a monthly fee to Live365 that covers the music storage and streaming plus the ASCAP, BMI and SESAC fees. Podcasts are great for the ocassional show but to run a 24-hour station with several different playlists — not my idea of fun. Especially as a labor of love project.
Michael chimes in, too.
If you want to help save internet radio, Live365 has set up a helpful page of information and you should also contact your Senators and Representatives. If you’ve got some time on your hands, read the 115 page PDF of the Copyright Royalty Board decision about the internet radio royalty increase.
{ 6 comments… read them below or add one }
Sooz,
I am sorry to hear that the royalty fees are forcing you to shut down. While I also agree that Artists should get paid for their work, the whole approach reeks of corporate trust and monopoly practice.
I have, essentially, stopped purchasing music and only listen to music that I already own or hear on the radio. Yes this affects my quality of life, but I cannot, in good conscience, support the activities of the current music distributors.
If artists wish me to purchase their music, then they will have to reach me directly.
Gregg
Hey Gregg:
I haven’t shut down Exploit Boston Radio! It’s certainly a possibility but I haven’t given up yet. Live365 has done a fantastic job “fighting the good fight” for internet radio broadcasters and I’m not convinced it’s over yet.
I agree that people need to be paid but the lack of parity between internet radio and terrestrial radio is nothing short of ridiculous.
Sooz
Hey Sooz,
You are paying the artists (ASCAP, BMI & SESAC). The fees that are threatening to be imposed will certainly NOT trickle down to your Bostonian musicians. Ask the artists that you’re playing to sign off on their Sound Recording Royalities and you’re good to go.
Good luck!
Hey GoGirl: Thanks for the comments. I’ll confess that I really don’t entirely understand how this is all working. I’ll email you for more info and write a follow-up here.
Sooz
I guess I need to learn more about this issue.
Surely it only applies to playing music by artists who have contracts with old-school record companies, or artists who choose to enforce these “copyright” rules.
Other artists must be able to permit their music to be played on these streams without, or with minimal, royalties.
Yes?
There’s no question we’re in a chaotic time. And it’s certainly true that many artists are being screwed by the record companies which they signed with. But as this situation becomes clearer, new artists ought to realize that to allow their work to become restricted like this is not in their best interest. They must protect themselves and their work, and keep it accessible via the new technologies.
If this post sounds like I’m not sympathetic to Sooz’s plight, and that of other internet “broadcasters”, then I’ve written it badly, cause I’m very sympathetic and supportive.
But in the long run, if the old record companies, and some artists, choose to not participate in the benefits of the new technology, then it’s their loss, ’cause we’re gonna leave them behind.
– Jack Hodgson
Hey Jack:
Thanks for sharing your comments. I’m finding it a curious adventure to participate in radio innovation on the web. It’s really not clear WHO the money is going to that Sound Exchange now plans to collect since those new fees are separate from the fees I pay to artists via SESAC, BMI and ASCAP. Hopefully I’ll be able to find out more info this week.
Here’s some info from Live365 for broadcasters but it’s good for anyone interested in this situation:
http://www.live365.com/broadcast/choice/
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