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March 4, 2007
US Copyright Royalty Board Effectively Kills Off Internet Radio
The newly passed royalty rates, some of which are (incredibly) retroactive, for online music broadcasting are patently ridiculous. Wired's coverage outlines many of the ways these new rates will effectively demolish online broadcasting for US-based companies.
The new rates force webcasters to pay for each song streamed to each user, and increase over the next few years as follows:2006: $0.0008 to stream one song to one listener
2007: $.0011
2008: $.0014
2009: $.0018
2010: $.0019Those fees will add up quickly for larger webcasters; the Radio and Internet Newsletter (RAIN) calculates that, assuming that the average station plays 16 songs per hour, sites would have to pay "about 1.28 cents" per listener per hour using the 2006 rate, and would owe this retroactively, in addition to licensing fees going forward.
This is very, very bad, especially for small- and medium-sized webcasters like our beloved WOXY.com. Also, you have to realize that these rates don't even include royalties paid to the original writer/composer of the work being broadcast; the rates above are just to the recording artist!
It makes me wonder exactly how much those fogeys on the CRB get paid by the RIAA. Sure, not directly -- they're not that dumb -- but gifts to friends and family and the occasional perk indirectly sponsored by the RIAA are, I'm sure, part and parcel of the assignment. After all, if it's not bribery, how do you explain a ruling so lopsidedly in favor of industry at the expense of consumers and to the detriment of innovation?
Posted by Craig in Industry
and Music & Audio
and Society / Politics