Will I Have To Shut Down? [Web Radio Royalty Ruckus]
John
Over here in web radioland, there is a disturbance in the force
regarding performer royalty rates we are required to pay to stream
major label tunes online. Congress recently passed a new law that
increases these rates.
The worst case interpretation: I'd have to pay a fee of $25,000 per
year to do what I do. R-r-right. The other interpretation: I stay
online with a moderate increase in the monthly fees I pay out of
pocket to webcast online in my audio sandbox. Yes.
By the way, AM/FM stations are exempt from these performance
royalties. How special.
In my perfect world, if there are going to be performance royalties,
all tunecasters pay or nobody pays.
My network Live365.com has an umbrella license that covers us personal
real fan webcasters. If nothing reasonable can be negotiated for us
small fry under the new arrangement in the next several weeks, it'll
be hasta la bye bye, folks....
FYI, here's the relevant part of the Bloomberg.com article about this:
"Live365.com, a network of online radio stations based in Foster City,
California, opposes the agreement, Johnie Floater, general manager for
media, said in an interview today. The new rates are less favorable
for smaller Web radios, he said.
“These little DJs, which are really the diversity and the promise of
the Internet, are being squeezed out,” Floater said. “Today’s
announced rates raise the hurdle on these little guys even further.”
The complete version is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=awJ15K5qJbWY
This affects listener choices online, fans finding interesting new
music, indie artist exposure, playing deep album trax by established
musicians ignored by regular big shot radio and my personal fun,
delusions of grandeur. [LOL!]
Help appreciated. I'll keep you posted.
Enjoy!
JBK aka Java Jive Jay, etc., etc.
Yes, you can turn me on! I'm on the radio!
Surf City Sounds Plus: http://www.Live365.com/stations/johns805?play
-Free Registration Requested-
MySpace Freeform Radio Page: http://www.myspace.com/surfcitysoundsplus
Sharx35
"John" <JBKru...@sbcglobal.net> wrote in message
news:f73c095b-7163-4df9...@x25g2000prf.googlegroups.com...
> Hi:
>
> Over here in web radioland, there is a disturbance in the force
> regarding performer royalty rates we are required to pay to stream
> major label tunes online. Congress recently passed a new law that
> increases these rates.
>
> The worst case interpretation: I'd have to pay a fee of $25,000 per
> year to do what I do. R-r-right. The other interpretation: I stay
> online with a moderate increase in the monthly fees I pay out of
> pocket to webcast online in my audio sandbox. Yes.
>
> By the way, AM/FM stations are exempt from these performance
> royalties. How special.
> In my perfect world, if there are going to be performance royalties,
> all tunecasters pay or nobody pays.
>
> My network Live365.com has an umbrella license that covers us personal
> real fan webcasters. If nothing reasonable can be negotiated for us
> small fry under the new arrangement in the next several weeks, it'll
> be hasta la bye bye, folks....
>
> FYI, here's the relevant part of the Bloomberg.com article about this:
>
> "Live365.com, a network of online radio stations based in Foster City,
> California, opposes the agreement, Johnie Floater, general manager for
> media, said in an interview today. The new rates are less favorable
> for smaller Web radios, he said.
> the Internet, are being squeezed out,� Floater said. �Today�s
> announced rates raise the hurdle on these little guys even further.�
>
> The complete version is at:
> http://www.bloomberg.com/apps/news?pid=20601087&sid=awJ15K5qJbWY
>
> This affects listener choices online, fans finding interesting new
> music, indie artist exposure, playing deep album trax by established
> musicians ignored by regular big shot radio and my personal fun,
> delusions of grandeur. [LOL!]
>
> Help appreciated. I'll keep you posted.
>
> Enjoy!
>
> JBK aka Java Jive Jay, etc., etc.
>
> Yes, you can turn me on! I'm on the radio!
>
> Surf City Sounds Plus: http://www.Live365.com/stations/johns805?play
>
> -Free Registration Requested-
>
> MySpace Freeform Radio Page: http://www.myspace.com/surfcitysoundsplus
>
> Twitter: http://www.twitter.com/surfcitysounds
I'd recommend that anyone wanting to do their thing on-line, do so on a
server LOCATED outside the legal reaches of anyone in the G-8 countries.
That way, the greedy ones could scream all they want but you would probably
be safe from any legal or financial sanction. I RECOMMEND, strongly, that
you get legal advice from an attorney well versed in international law
especially that involving litigation.
John
> "John" <JBKrug4...@sbcglobal.net> wrote in message
>
> news:f73c095b-7163-4df9...@x25g2000prf.googlegroups.com...
> >
> >
> > Hi:
>
> > Over here in web radioland, there is a disturbance in the force
> > regarding performer royalty rates we are required to pay to stream
> > major label tunes online. Congress recently passed a new law that
> > increases these rates.
>
> > The worst case interpretation: I'd have to pay a fee of $25,000 per
> > year to do what I do. R-r-right. The other interpretation: I stay
> > online with a moderate increase in the monthly fees I pay out of
> > pocket to webcast online in my audio sandbox. Yes.
>
> > By the way, AM/FM stations are exempt from these performance
> > royalties. How special.
> > In my perfect world, if there are going to be performance royalties,
> > all tunecasters pay or nobody pays.
>
> > My network Live365.com has an umbrella license that covers us personal
> > real fan webcasters. If nothing reasonable can be negotiated for us
> > small fry under the new arrangement in the next several weeks, it'll
> > be hasta la bye bye, folks....
>
> > FYI, here's the relevant part of the Bloomberg.com article about this:
>
> > "Live365.com, a network of online radio stations based in Foster City,
> > California, opposes the agreement, Johnie Floater, general manager for
> > media, said in an interview today. The new rates are less favorable
> > for smaller Web radios, he said.
> > the Internet, are being squeezed out,” Floater said. “Today’s
> > announced rates raise the hurdle on these little guys even further.”
>
> > The complete version is at:
> >http://www.bloomberg.com/apps/news?pid=20601087&sid=awJ15K5qJbWY
>
> > This affects listener choices online, fans finding interesting new
> > music, indie artist exposure, playing deep album trax by established
> > musicians ignored by regular big shot radio and my personal fun,
> > delusions of grandeur. [LOL!]
>
> > Help appreciated. I'll keep you posted.
>
> > Enjoy!
>
> > JBK aka Java Jive Jay, etc., etc.
>
> > Yes, you can turn me on! I'm on the radio!
>
> > Surf City Sounds Plus:http://www.Live365.com/stations/johns805?play
>
> > -Free Registration Requested-
>
> > MySpace Freeform Radio Page:http://www.myspace.com/surfcitysoundsplus
>
> > Twitter:http://www.twitter.com/surfcitysounds
>
> I'd recommend that anyone wanting to do their thing on-line, do so on a
> server LOCATED outside the legal reaches of anyone in the G-8 countries.
> That way, the greedy ones could scream all they want but you would probably
> be safe from any legal or financial sanction. I RECOMMEND, strongly, that
> you get legal advice from an attorney well versed in international law
>
> - Show quoted text -
Hi:
Go ahead, check with the legal beagles, but I seriously doubt that is
a viable option. I'm sure there is sufficient clout among the RIAA,
Soundexchange and CRB to easily block such outside servers from
streaming on our domestic ISPs....Unless I figured wrong, that dog
won't hunt....:)!
Don't Frazzle My Frequency, Bozos! [LOL!]
Enjoy!
JBK aka etc., etc.
Sharx35
>> > announced rates raise the hurdle on these little guys even further.�
Bah, there is all sorts of totally illegal crud coming from offshore servers
that gets through to the U.S. and Canada from places in Russia and various
islands in the Pacific.
Dean F.
lower per-song royalties or 25% of their total revenue.
By Jim Puzzanghera, Los Angeles Times, July 8, 2009
http://www.latimes.com/business/la-fi-ct-webcaster8-2009jul08,0,4964728.story
Reporting from Washington -- The music won't stop for Internet radio
after a group of webcasters struck an agreement with SoundExchange,
the organization that collects royalties for musicians and record
companies, over payments for playing music online.
The settlement ends a 2 1/2 -year-old dispute that had threatened to
silence the nascent Internet radio business and had forced some people
who started online stations as a hobby to quit for fear of accruing
expensive royalty bills.
The deal is part of a series of agreements made this year that cover
various sectors of the industry, including small webcasters and
conventional radio stations that simulcast their broadcasts online,
and have resolved much of the controversy.
Tuesday's settlement allows websites that stream music to avoid per-
song royalty payments that were set in 2007 by a special federal court
and that many Internet radio sites said would force them out of
business. Instead, Pandora Media Inc. and other large webcasters can
choose an alternative rate structure that allows them to pay lower per-
song royalties or 25% of their revenue -- a major break, given that
many webcasters don't make much money yet.
"If the rates weren't resolved, we were sunk. So this is a huge
relief," said Tim Westergren, co-founder of Pandora, the Oakland,
Calif., webcaster that has about 30 million registered users. The
company forecasts $40 million in revenue this year and hopes to become
profitable next year, he said.
The new per-song rates start at 0.08 of a cent per listener for each
song played and rise to 0.14 of a cent in 2015, when the agreement
ends. The rates set in 2007 by the Copyright Royalty Board started at
0.0762 of a cent but were to more than double to 0.19 of a cent by
2010. Under the new agreement, large webcasters pay whichever is
greater, the per-song fee or 25% of their revenue. Smaller commercial
webcasters -- those with $1.25 million or less in total revenue --
would pay between 10% and 14% of their sales or 7% of their expenses,
whichever is greater.
"It's a substantial reduction in the per-song streaming fee, and that
was really the crux of the problem for us," said Westergren, who has
been a leading voice in the fight against the royalty rates.
The Copyright Royalty Board allows SoundExchange to negotiate
different rates on behalf of the musicians and record labels. And
legislation passed by Congress allows a deal struck with one webcaster
to apply to any others that want to accept it.
Tuesday's deal was struck with three webcasters -- AccuRadio, Radio IO
and Digitally Imported, said John Simson, executive director of
SoundExchange.
The Digital Media Assn., which represents webcasters and other online
media providers, said it was pleased with the agreement and expected
some of its members to opt for the deal. The agreement will help
Internet radio grow, said Paul Krasinski, chief executiveof Ando
Media, an Internet radio tracking company.
SoundExchange came to agreements this year with the National Assn. of
Broadcasters, which represents over-the-air radio stations, and the
Corporation for Public Broadcasting, which represents public radio
stations. It also struck a deal with small webcasters. But rates for
large ones, such as Pandora, were unresolved until Tuesday. The deal
is retroactive to 2006 and extends through 2015.
"We were able to come up with an interesting, experimental approach,"
said Simson, whose organization includes major record labels such as
Sony BMG Music Entertainment and Warner Music Group as well as
independent labels. "We're still in a developing business, so we said,
'Let's try something that gives us a really nice upside if they're
successful.' "
The agreement works for "pureplay" webcasters -- those that simply
play music, often supported by advertisements. Those sites may have
very low revenue while the Internet radio model continues to evolve.
Websites that stream music but also sell other products won't find the
deal so appealing because they must pay a percentage of all their
revenue, Simson said.