Remember when a bunch of us music bloggers decided to boycott the RIAA? Well, now it’s Internet radio’s turn. But this time it’s just a one-day thing to protest new royalty rates imposed by the CRB (Copyright Royalty Board) on Internet streams (i.e., Internet radio). Â
The old way of paying the piper was based on a percentage of profits a station generated. Now? You gotta pay each time you hit “play.” Some are saying that it will increase the costs as much as 300%! That’s pretty much says “Going out of business” for Internet stations.
But it gets better!
This also spills over to traditional radio as well. Like the radio stations I work for, most radio stations offer their listeners streaming audio through their websites. Well, now that the CRB is basically saying “Pay up each time you play it” you might see the “Listen Live” feature on station websites go away.Â
This isn’t a done deal, though. Seems some folks in Congress are trying to push a bill that will increase royalty rates on a smaller scale. It’s called H.R. 2060, and there’s a Senate bill that’s pretty much identical to the House bill in the pipeline as well.Â
I’m not savvy to the ins and outs of recording contracts artists make with record labels. However, I do know that the amount most artists make on a record is pretty small. It’s not clear that the new CRB rates will dramatically increase the amount artists makes on their work, but it’s pretty likely it will increase the amount record companies make.Â
–PK
J
June 26, 2007 at 7:30 amWell, all the record companies have done for the last 10 years is bitch about how they’re losing money, so I guess they had to find a way to make up their coke money, right?
Ml
June 26, 2007 at 8:01 amNext thing you know, they’re gonna charge people to break wind!
Lalapunci
June 26, 2007 at 12:24 pmThe music industry is shooting themselves in the foot. Radio is where new music reaches the public and renewed interest in the old stuff too. The broader your marketing base is the more customers you will attract. Why cut off your supply line unless the record companies want to own these stations.
Lalunas
June 26, 2007 at 6:59 pmShow me the money… That is what it is all about..