Music could Die July 15th

Music could Die July 15th

Support the The Internet Radio Equality Act

Over the past decade, Internet Radio has been where new music could be heard, and where new artists were able to showcase their stuff.


http://www.savenetradio.org/musicians/index.html
"
...
The concern about the recent CRB decision is that the performance royalty rates for Internet radio services is an increase of 300-1200 percent from what webcasters were previously paying, causing the majority of webcasters to close their doors come July 15th. It is simply impossible for webcasters to pay 150% of their revenue to royalties.
...
"
http://www.savenetradio.org/musicians/index.html

http://www.geek.com/news/geeknews/2007May/gee20070529005551.htm
"
The Internet Radio Equality Act would reverse a decision by the Copyright Royalty Board (CRB), which earlier this year handed down a decision that would raise royalty fees for Internet Radio between 300% and 1,200% over the next 5 years.

Such large increases in royalty fees are expected to cause many Internet Radio service providers to go out of business. As a result, a coalition called SaveNetRadio was established to lobby for a new law that would set royalty fees to be the same for Internet Radio as satellite radio services. Currently, satellite radio pays a royalty fee of 7.5% of revenue.
"
http://www.geek.com/news/geeknews/2007May/gee20070529005551.htm


http://gizmodo.com/gadgets/copyright-royalty-board/...
"

Two misperceptions about Internet radio, according to Pandora co-founder Tim Westergren:

First:

...higher rates mean more money for artists. The reality is that the few Internet radio companies that opt to continue (and it will be VERY FEW) will be forced to license directly from labels. In this scenario, the artist share of the revenue will shrink to almost nothing as the monies will go directly to the label and be subject to the usual artist royalty rate (post-recoupment) of single digit percentages. So not only will this eliminate the vast majority of online stations that are the ONLY source of indie music exposure, it will take what little revenue is left from the artists.

Secondly:

...contrary to any statements by SoundExchange or RIAA representatives, Internet radio is not a highly profitable business nor will it be. For most (including Pandora), it's still a money-loser at the old rates that we are working as hard as we can (15 full time sales people are on the job) to turn profitable in a year or two. The growth figures put out by JP Morgan (recently revised downward from $500M to $150M) don't mean profitability—they mean more revenue which comes with greater costs. It's a thin margin business at best. No one's profiteering here.

For more about this situation, you can visit SaveNetRadio.org. – Wilson Rothman

"
http://gizmodo.com/gadgets/copyright-royalty-board/...


Support the The Internet Radio Equality Act

Common Cause Lookup Page for Legislator Contacts U.S. Capitol Switchboard: Toll Free 877-851-6437 and 800-426-8073 or (202) 224-3121.

-- Mark Frankenberg

HEAR the MUSIC
get a FREE "Just Say NO to Fascism" Bumper Sticker
http://www.AmericanWisdom.org