No Shutdown For Net Radio For Now
Internet Radio received a stay of execution on Thursday with a new deal arranged with SoundExchange, the group responsible for collecting music broadcasting royalties. According to a statement from SoundExchange, "SoundExchange has offered to extend 1998-era below market rates to small commercial webcasters, and to keep rates at 2003 levels for thousands of noncommercial webcasters. This would mean that the vast majority of Internet services would have no rate increase of any kind from 1998-2010". In addition, Richard Ades, a spokesman for SoundExchange, said the organization has offered to cap the minimum fees to be paid by large music webcasters at $50,000, a figure that will last through 2010 or for the life of the new, higher rates.
So, what does this mean? Well, at least some of the big names in internet radio will not shut down in the immediate future. I am not sure about smaller broadcasters and how this will affect them. The thing to remember is that this is basically a concession from the music industry to not kill the internet radio broadcasters yet. They are most likely still in negotiation with broadcasters to reach a long term agreement.
In order to keep the broadcasters safe, what really needs to be done is for the Copyright Royalty Board to set the rates to prevent the music industry from imposing outrageous fees. Whether or not this will come about remains to be seen.
What is clear is that our government has once again shown that they don't understand new technology. If they had, they would never have allowed the high rates in the first place.
Of course, it would have been rather interesting if the rates had gone through, the internet radio stations would have all shut down because they couldn't pay them, and SoundExchange would get no future payments. Then, most likely, some of the broadcasters would pop up in countries outside the U.S., and would carry on without paying any fees at all, and the music industry would have shot themselves in the foot.
If you want to read more about the new agreement, check these out.
Wired Article
Computer World Article
Posted by PH on 07-16-2007 12:25:28 CST
So, what does this mean? Well, at least some of the big names in internet radio will not shut down in the immediate future. I am not sure about smaller broadcasters and how this will affect them. The thing to remember is that this is basically a concession from the music industry to not kill the internet radio broadcasters yet. They are most likely still in negotiation with broadcasters to reach a long term agreement.
In order to keep the broadcasters safe, what really needs to be done is for the Copyright Royalty Board to set the rates to prevent the music industry from imposing outrageous fees. Whether or not this will come about remains to be seen.
What is clear is that our government has once again shown that they don't understand new technology. If they had, they would never have allowed the high rates in the first place.
Of course, it would have been rather interesting if the rates had gone through, the internet radio stations would have all shut down because they couldn't pay them, and SoundExchange would get no future payments. Then, most likely, some of the broadcasters would pop up in countries outside the U.S., and would carry on without paying any fees at all, and the music industry would have shot themselves in the foot.
If you want to read more about the new agreement, check these out.
Wired Article
Computer World Article