Internet Radio Fairness Act would spur innovation

The following first appeared as a Billboard.biz Guest Post I wrote as founder/CEO of AccuRadio and a member of the Small Webcaster Alliance. It appeared on Tuesday, the eve of yesterday's subcommittee hearing.

As an Internet radio broadcaster and member of the Small Webcaster Alliance, I've been involved in the issue of copyright royalty rates for Internet radio for many years. And I've seen vividly that the current royalty rate system threatens to strangle the life out of an industry that is providing both choices for consumers and opportunities for musicians.

Both in 2002 and again in 2009, after the U.S. Copyright Office published rate-setting rulings that would have bankrupted all or most Internet radio providers, Congress had to intervene and ask record labels to negotiate a more-workable rate with webcasters.

The resulting rates are still wildly higher than those paid by other forms of digital radio (i.e., satellite radio and cable radio) and have been barely survivable for most webcasters - with many forced to exit the business entirely. Meanwhile, other companies who could spur innovation in Internet radio remain on the sidelines due to concerns over unsustainable royalty rates.

The problem with the current "willing buyer/willing seller" Internet radio standard for rate-setting is that while it is intended to lead to a market-based rate, the fact that the large record labels negotiate as a group means that a true market rate has never actually been determined.

The result has been a nightmare for our industry ever since. Copyright Office decisions have forced webcasters - the ones that were able to remain in business - to pay unreasonably high royalty rates, hindering innovation and growth.

Last year, for example, Pandora paid more than 50% of its revenue in royalty payments and as a result, as seen in their SEC filings, the company has yet to make a profit. And if the leading firm in an industry has trouble breaking even, you may reasonably (and correctly) assume that most other webcasters are struggling even more. (Note that if my Small Webcaster colleagues and I had to pay royalties at the rates determined by the Copyright Royalty Board, most of us would have to pay more than 100% of our revenues in royalties!)

That's why we support the Internet Radio Fairness Act (IRFA). It doesn't set or change royalty rates for Internet radio - it simply modernizes the rate-setting structure in a way that will help create a more viable digital music business for everyone.

To do so, the IRFA would move webcasting to the more-traditional "801(b)" rate-setting standard, which balances the interests of the copyright owners, the copyright users, and the general public. It has been used successfully for decades in most rate-setting determinations, including for other forms of digital radio like satellite radio, cable radio, and even by record labels in cases where they are the copyright users.

The "801(b)" standard is a set of four criteria that Congress typically tells the Copyright Office to use in determining a royalty rate: (1) Maximize the availability of creative works to the public. (2) Insure a fair return for copyright owners and a fair income for copyright users. (3) Reflect relative roles of capital investment, cost, and risk. (4) Minimize the disruptive impact on the industries involved.

The current confusing mix of royalty-rate setting standards for digital radio is result of piecemeal legislation enacted as each new technology was invented. The result is a system significantly out-of-sync with the realities of the 21st century marketplace. It substantially hinders the growth of Internet radio businesses and platforms - and thus hurts consumers, musicians, and innovators.

For the music industry particularly, I believe that a thriving Internet radio industry could be a godsend. Webcasters like Pandora, AccuRadio, and others are already giving significant and valuable amounts of airplay to dozens of genres of music (ranging from bluegrass to EDM), hundreds of independent record labels, and tens of thousands of artists that otherwise would be unable to use the power of radio exposure to build their fan bases.

Passage of the Internet Radio Fairness Act will foster innovation in the industry. It will create jobs, benefit artists by giving them more opportunities to be paid for their work, and benefit consumers by giving them more listening choices.

It's a piece of legislation that every innovator in the music industry should support.

You can see this Guest Post in Billboard.biz here:

http://www.billboard.biz/bbbiz/industry/digital-and-mobile/internet-radi...

Share this

Comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

This is probably the best article I have seen ever. I really enjoyed reading the article. Good luck. - Telephone Survey Services

http://leadgenerationservices.com.au/telephone-survey-services.html

this blog is really wonderful and useful for us and provide us best information about and you will find the result of UPSEE Results 2018: {upsee.nic.in} – UPSEE Counselling Date

6 Weeks Summer Training On Linux with Live Projects

With KVCH, now become a Linux RedHat certified with a 4/6 Weeks Crash Course with live projects to regain skills On Linux OS and Industrial experience during the course itself. Register Now for Free Demo or Visit here: https://kvch.in/linux-6-weeks-project-summer-training-noida.html
Make a call: 9266625607 Email us at: training@kvch.in

linux summer internship,linux summer training in noida

The AP Inter Results 2018 will be released by the Board of Intermediate Education, Andhra Pradesh State. After complete the exams, the board is going to release the grades

examresults.ap.nic.in

Falcon Super Cleaner Download best junk cleaner and phone booster app – Falcon Super Cleaner that also comes equipped with a one touch battery saver app for Android and duplicate photos cleaner among others. Get this powerful, all-in-one, lightweight android optimizer for free on the Google Play Store.
https://play.google.com/store/apps/details?id=com.pcvark.batterysaverapp

Thanks for sharing with us. http://www.onlinebatchprinting.com/

Du möchtest langfristig Geld verdienen, weißt aber nicht wie es geht.
Du hast vom Online Marketing erfahren, weißt aber nicht, wie du das hinbekommen kannst.
Ich verrate dir hier mein Geheimnis: Ich vermarkte hier digitale Trading und digitale Online Produkte zum Geld verdienen über das Internet.
Du brauchst absolut keine Vorerfahrungen und auch keine Kenntnisse. Denn ich hatte sie auch nicht. Was du nur tun musst, klicke unten auf den Button und schau dir die digitalen Online Produkte erstmal an bzw. informiere dich über diese Online Produkte.
Ganz ehrlich: Ich bin seit 3 Jahren Online Marketer und verdiene täglich 1814€ nur von Online Marketing.
Ich vermarkte sehr viele digitale Trading Produkte mit denen jeder sein Geld mit Aktien traden will.
Zb vermarkte ich auch Klick-Tipp für E-Mail Marketing, damit du durch Fremde E-Mails Geld verdienst.
Es gibt vieles für dich.
Und das beste ist, es ist alles Kostenfrei.
Klicke auf den unteren Button und erfahre an meinen Erfahrungsberichten, wie du Non-Stop Geld verdienst
http://xn--fevzigrer-v9a.com/

You have a real ability for writing unique content. I like how you think and the way you represent your views in this article. I agree with your way of thinking. Thank you for sharing. กระเป๋าแบรนด์

I am very grateful with this blog

http://istanaimpian3.co

hhhhhhhhh

i really find good information about GUJCET Hall Ticket 2018 – Exam Date, Pattern & Syllabus

Nyc info..
Government Jobs offer an opportunity to turn your aspirations into reality. If you aspire to work in the mainstream and be a part of the nation's economic development, a job in the Government Sector may be the best option for you. Every year a number of job opportunities become available in the Government Sector.
for more info:- sarkarijob.ind.in

great work and find new way of work and if want to search about
hilltopschooljamshedpur.org Nursery Admission List 2018

Thanks for sharing it with us. http://www.bowspreaderroll.com/

Thanks bae for information

Make My Assignments|Assignment help make customized assignments. Our team of experts is ready to make your assignments 24x7. We provide 100% Plagiarism free work
Best Marketing assignment help service at affordable prices that too plagiarism free
Get the best assignment help service from leading assignment help service provider in UK, USA, and Australia- www.makemyassignments.co.nz

Make My Assignments|Assignment help make customized assignments. Our team of experts is ready to make your assignments 24x7. We provide 100% Plagiarism free work
Best Marketing assignment help service at affordable prices that too plagiarism free
Get the best assignment help service from leading assignment help service provider in UK, USA, and Australia- www.makemyassignments.co.nz

I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post.
woodlands aircon servicing

nice information

http://popcrops.com

nice information

http://essaouira-villa.com

nice information

http://outofthelair.com

nice information

http://outofthelair.com

nice information

http://sziget2006.com

nice information

itsourthing.net/

nice information

itsourthing.net/

It is very informational. http://www.bananaroll.net/

nice information

http://century21rais.com

wow keren...

a href="http://internetrechargetricks.com">internetrechargetricks.com

Great info! I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have.
Passive Income

cÓ NÊN mua khu dân cư Areca Villa hay không, vị trí Areca Villa Long anAreca Villa Long an ở đâu, chủ đầu tư du an Areca Villa là ai
Gem Premium

Thanks for sharing it with us. http://www.bananaroll.in/

Excellent website you have here, so much cool information!..
bulk confetti

GREAT ONE AND AILET 2018 Hall Ticket

Wow i can say that this is another great article as expected of this blog.Bookmarked this site..
Rivercove Residences

Thank you so much for sharing this informative post.
Power of Wazifa

It is very good artical for all us. Thanks for giving this information. I am very glad to read it.
online book in jaipur

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

By submitting this form, you accept the Mollom privacy policy.