The Copyright Royalty Board (CRB) has recently released a revised fee schedule for internet radio. Left unchanged, these rates will end internet radio, period. The RIAA has effectively convinced this federal committee to establish rates that make online radio a non-viable business.
It's an utterly ridiculous ruling that renders any form of internet radio non-economic. We are continuing in the belief that sanity will return as everyone involved, including the 50 million avid online radio listeners, realize just how outrageous this is.
You can probably tell by this post that I feel strongly about this. Online radio has opened up a new world for musicians and listeners alike. It has brought millions of otherwise disconnected music-lovers back to music radio, and has opened up tremendous access and promotion for thousands of musicians - both obscure and well known.
We are striving very hard to build a business. We employ eleven full time people in our ad sales team, and despite very high licensing and streaming costs, believed that we could make it work over the next several years if internet advertising continues to grow. This ruling drives the licensing fees (fees that are NOT paid by terrestrial broadcasters) completely out of reach, and makes our goal impossible.
This is a terribly ill-conceived attempt to crush a powerful and positive grassroots movement that is sweeping across the music world. The record labels' struggles have nothing to do with online radio and killing it will further hurt their business, not help it.
We need your help. If you'd like to get involved please write your congressperson. Below is a link to point you to the right person. If you can, please send a letter or a fax that asks for a reply (emails are too easily ignored).
Congressional Directory by Zip Code
Internet radio is hostage to a blatantly discriminatory double standard that was written into the federal statute governing webcasting several years ago, following an intensive lobbying effort by the RIAA. We need to redress this, and create a more level playing field - one that of course rewards musicians for their work (I spent years in a band van myself and have always been driven by a desire to lift up musicians), and one that also understands the business realities, and benefits of online radio.
While we figure this out, below are a few of the more informative write ups we've seen in the past week. We also suggest that you visit and sign this petition put together by a collection of webcasters.
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