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.

Very interesting article, very clear description. i can understand clearly and hosting murah indonesia so hosting murah developer . i think jasa pembuatan website is great

Interesting article! Thank you for sharing them!
Bigcommerce Website Design

These ways are very simple and very much useful, as a beginner level these helped me a lot thanks fore sharing these kinds of useful and knowledgeable information.

snapho

I appreciate and thank you for sharing this article.
Shopify Web Designers

I am happy to find this post Very useful for me, as it contains lot of information. I Always prefer to read The Quality and glad I found this thing in you post. Mozilla Firefox Download

Thanks for the info, was really nice for me to come across to this post. I will bookmark your site for future reference. infraroodsauna

Very Helpful Information, I like it Very Much.. Thanks for this post

The information from the web is very useful to add insight. and I really like this website, and if you or any of you who read this my comment. I beg you, please click the following website: obat tidur

The information from the web is very useful to add insight. and I really like this website, and if you or any of you who read this my comment. I beg you, please click the following website: obat perangsang wanita

The information from the web is very useful to add insight. and I really like this website, and if you or any of you who read this my comment. I beg you, please click the following website: hammer of thor

Students Assignment Help offers Assignment Help Service. If you are unable to write the assignment of Assignment Help New Zealand Service, then you should take help from us.
https://www.studentsassignmenthelp.com/nz/

This is an incredible motivating article. I am basically satisfied with your great work.You put truly extremely supportive article. cbd oil benefits

Kebersihan rumah tentunya harus selalu di perhatikan setiap saat karena ini erat kaitannya dengan kesehatan dari para anggota keluarga yang tinggal di rumah tersebut. Grades Home Cleaning adalah salah satu perusahaan yang fokus sekali dalam hal cleaning service rumah di Bandung. Berikut adalah jasa jasa cleaning service bandung yang bisa anda dapatkan dari kami :
1. jasa bersih rumah bandung
2. home cleaning bandung

It's good to hear about it. Thank you for sharing!
instagram hashtags

I am big fan of such lovely little things that smell so good. I have numerous aromatic candles at home! It helps me to relax after my working days. Looking for a Wedding Photographer?

Really awesome post and great tips about writing as this helped me. https://carloans.sg/

Many thanks for sharing this very diverse opinion post where each expert has no doubt shared his best knowledge on the topic. Have more success in your journey.
https://www.makemyassignments.co.nz

I am big fan of such lovely little things that smell so good. I have numerous aromatic candles at home! It helps me to relax after my working days
https://www.makemyassignments.com

All these product seems upgraded and with new instruments. The designs are awesome. Definitely the best upholstery now. But you should have to add pros and cons of this products. Got some details from here:http://santabarbaraupholstery.com/window-treatments-santa-barbara/

World’s Best Top 10 blogs are like this sharing greaat content with us thank you v much

Great post about Internet Radio Fairness Act would spur innovation and really informative World’s Best Updates you can find on such blogs.

Hats off !! for hard work

Thank you very much for writing such an interesting article on this topic. This has really made me think and I hope to read more. all leather letterman jacket

There are 57 Doraemon Games. These games are ranging from platformer to RPG. Play Doraemon Games online for free, no download required!
doraemon games

I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.
http://www.gupshuppoint.com/ Rooms

Run 4 unblocked is upcoming Game from Run 3 Game series best 3d Runner game with lot of new levels enjoy fun.
run 4 game

It is superb blog and I really appreciate your blog. It is because I always like the informative blogs. You did a great job and thanks for sharing. webdesign

Useful information: To access software, manuals and other contents, use the tabs above. Select your operating system from the list above to see if your product is supported. Register your product and canon lbp2900 driver manage your Canon ID Locate a repair center and find other useful information about our repair process. Help us improve our service by conducting a short survey based on your experience of the Canon Support Web site. Household Appliances  »Hard Drives, Printers and MonitorsBajitpur, Basirhat Home Appliances and Appliances » Hard Drives, Printers and MonitorsSurat Maha Nagar

Ripped T-Rex/Dino game of Chromium. ... to jump your Dino and start the game. Sorry, this game only runs on the Google Chrome! You can download it free here.
trex game

This is a Nice and informative Post..I would like to suggest you that please keep sharing such type of information ..Thank you so much for sharing it with me. Togel Online

http://tutuhelperapk.co
is indeed a helper and will solve all the problems that you have

Very informative and understandable. I think this is an informative post and it is very useful and knowledgeable. I hope you will continue posting new article! cheapest smm panel

This was nice and impressive post i read it and it was incredible thank you so much for sharing this kind of info with us you are so good and amazing with your work. I appreciate that thank you. Judi Togel

here you really go learn to como atrair um homem

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.