Traditional Radio Stations Agree To Webcasting Rates; Internet Only Webcasters... Not So Much
from the battle-still-brewing dept
While the big radio stations, represented by the NAB seem to have worked out a deadline deal on webcasting rates, it appears that internet-only webcasters have had their talks break down. This is bad news, of course. The whole situation is something of a farce. Rather than letting the market work the issue out directly, the Copyright Royalty Board (basically some internet-illiterate judges) basically gave the recording industry everything it wanted when it declared what the rates should be -- and made them quite high. Many online radio stations noted that the rates were so high that they would shut down. And, of course, the whole process would make RIAA-spinoff SoundExchange tons of money in administrative fees while separately benefiting the major labels that make up the RIAA by driving the smaller indie webcasters (who play less RIAA music) out of business. A win-win! And, of course, protesting by playing non-RIAA music wouldn't help. SoundExchange gets to collect for that music as well.About the only reasonable thing was (despite the CRB's refusal to stay the ruling) that SoundExchange agreed to hold off new royalties while the parties negotiated. Time to work out a deal was supposed to end last fall, and despite SoundExchange and many webcasters asking for more time, the NAB lobbied hard to deny that extra time. Luckily they got it anyway, but even the extended period of time has ended. NAB and its big radio stations are fine with their deal, but internet-only webcasters still don't see anything reasonable. On top of that, SoundExchange made a separate offer to "small" webcasters, but most have found that to be way too onerous as well -- especially the part where if they ever get acquired by a larger player, they'll have to go back later and pay the higher rates even for the time when they were small and independent.
And, no one has yet explained why webcasters should need to pay so much money for helping to promote new acts in the first place. Radio, streaming online or over the air, is a great way for people to learn about new acts, giving them reasons to go out and buy products and merchandise or see those acts live. By forcing the very people who want to promote the music to pay ridiculous fees, all the industry is doing is shooting itself in the foot. Again.
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Filed Under: copyright royalty board, radio, royalties, webcasting
Companies: nab, soundexchange
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yet again
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Re: yet again
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It's time
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The smaller radio stations would almost certainly be playing independent music. Why do you think the loophole was introduced in the first place? Entirely so that radio stations couldn't avoid paying the RIAA by playing indy music. It's a travesty that this was allowed, so it's not surprising.
So, the RIAA honestly don't care if these smaller players shut down. It means less advertising for non-RIAA music, and increases the homogenisation of music by limiting competition. The RIAA don't want to be creative with music, they just want their new production-line product to sell.
Of course, this will backfire in the long term. People will continue to look to other channels - legal or otherwise - for new music. As the smaller players are shut down, mainstream audiences will further tire of the mainstream product and stop buying music altogether. Meanwhile, innovative musicians will continue to find new avenues by which to spread their music to those who want to listen, be it by using P2P to give music away for free or some other method.
This will inevitably reduce the major labels' ability both to sell their own music and to acquire new up-and-coming bands. But, as they constantly show, they only care about next week's profits, not next year's. They will sabotage their future to get a windfall now, just as they have over and over again for the last decade.
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Re:
Decade. Which means, as long as people continue to support next week's profits, we're looking at another decade of this crap.
While the RIAA continues shooting itself in the foot, it can still move, and this is creating problems for everyone. If every possible avenue is being shut down by RIAA, new musicians, who don't want to sign with a label, are going to find it much more difficult to distribute their music.
I'm tired of RIAA shooting themselves in the foot. I'd rather someone take aim for the head, and take down RIAA for good.
Until then, expect more problems to arise rather than get solved.
For indie musicians, I wish you luck in the future. You're going to need it.
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what
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I have not spent a dime on any music from traditional sources for the last 12 years due to the insane practices of the RIAA and others of their ilk.
The only music I have added to my collection in all this time has come through direct purchases with the band, usually local groups just getting started.
It is a shame too, because there are hundereds of CD's I would like to buy, but I simply can't support the industry anymore.
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Fast forward: I now make maybe 2 music urchases a year of no more than about 6 CDs per purchase. To be honest, I haven't bought anything yet this past year because I fear it won't play on my gear. Buying music has become a huge hassle and that is sad because I love it so.
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RIAA plan to prevent independent Artists?
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Thanks RIAA,
Dumb arses!
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Re:
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Ugh
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So since they're relying on an increase in revenue from these sources (which they see as being in some respects subsitutional for music purchases, which isn't unreasonable since music sales are in fact falling) they need to make as much as they can from them, they can't view them as being primarily promotional.
Ultimately the problem is that the interests of the labels and the interest of their artists have diverged. Artists signed to major labels benefit from all the promotion and marketing their label does for them, and can make money from touring and merch even if they don't sell many CDs (and again, the labels don't participate in those revenue streams unless they have a 360 deal with the artist). So while it's in the artist's best interest to have as many people as possible hear their music, even if they don't actually make any money from it (since it results in greater attendance at shows and more sales of t-shirts, licensing deals, etc), this isn't the case for a major label. This is why the majors have been pushing 360 deals, but from an artist's perspective there's no real incentive to cut them in on those revenue streams -- and less and less reason for an artist to sign their life away to a label in the first place since they're no longer needed for distribution and marketing.
I don't think things are going to get better until we have a whole generation of artists that have grown up outside the label system, and don't expect sales of recorded music to be their primary source of revenue. We're slowly getting there, but it's going to take a while.
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how?
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Very Smart.
ASCAP said, "Pay us all your money. More. More!"
Broadcasters said, "We'll just use public domain music."
ASCAP said, "Yeah! Like that's going to work! The people demand the best."
It worked. The public domain music, even if inferior (I don't know if it was) was good enough for the stations to turn their backs on ASCAP. ASCAP was broken, and agreed to reasonable licensing rates.
By making sure they can charge for almost any music, they are ensuring that history is not repeated. I guess as long as we have copyright, no market mechanisms should be allowed to influence the industry. NOT.
http://www.youtube.com/watch?v=7Q25-S7jzgs
"COMPETITION BAD!"
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ASCAP
http://www.youtube.com/watch?v=7Q25-S7jzgs
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Free Pass
I don't understand why so many give a free pass to the musicians when they are ultimately responsible.
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Re: Free Pass
The musicians don't have a say unless they refrain to sign on to an RIAA record label.
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Someone Point out
Since SoundExchange is based on fear and has almost no common sence they would have to sue this guy whos getting away with not playing with there system or be exposed for the fruad they are.
And, Since lawsuits cost money, we get right back to the RIAA campain of suing everyone in the world for the good of the stockholders.
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No Surprise
Tell me again why this is fair?
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indie music popularity cuts into RIAA sales
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You forget...
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idiots
Sure are a bunch of smart folks, those RIAA/SoundExchange guys, lemme tell you.
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Internet radio
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