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.

There should be fairness in the radio because radio is a mass communication device and its impact can be economically not good just like some people are making mistakes in aadhar card they are reapplying on this website http://aadharonline.hatenablog.com/ the problem in aadhar card leads to lots of problems in the common people just like radio.

This blog post really grabbed my attention. With that said I am going to subscribe. Therefore I will get more updates on what you have to say. Please keep writing as I want to learn more.https://avgantivirusfreedownload.com/ AVG free Download

I wanted to leave a little comment to support you and wish you a good continuation. Wishing you the best of luck for all your blogging efforts. A good blog always comes-up with new and exciting information and while reading I have feel that this blog is really have all those quality that qualify a blog to be a one.
wearable fitness trackers

This is really nice. i enjoy hovering over different topics here. thank you for providing the users with such reliable content. https://www.youtube.com/watch?v=cqsRVQJCcnI clash royale cheats deutsch

I feel truly cheerful to have seen your site page and anticipate such a variety of additionally enlivening times perusing here. click site

Innovation in this field is good to do. I always love to follow newest development in music. 急需借錢

It is good to see such high-quality website and reading amazing content. 10/10 for your efforts. Students looking to seek assignment help online can visit our site and can expect to get a decent assignment writing solution
https://www.makemyassignments.com

Aptron India says Best Blog content really a wonderful knowledge...

I discovered your site ideal for me. It consists of wonderful and useful posts. I've read many of them and also got so much from them. In my experience, you do the truly amazing. Truly i'm impressed out of this publish. fts 15 apk

With the advantage of having our own workshop and self-purchasing

we are proud to be able to meet any needs of all customers.

We are exporting to the market of China, Thailand, Russia, Brazil, Angola, Europe, North America… with capacity of 5000 kg per month

We are constantly striving to improve our production capacity and expand our market around the world.
https://laylahair.com/what-is-remy-hair-extensions/
https://laylahair.com/remy-hair-is-one-of-the-best-choices/https://layla...
https://laylahair.com/vietnam-human-remy-hair-straight-weft-and-tape-hair/
https://laylahair.com
http://carevirginhair.com

Nice information, good stuff with good ideas and concepts, lots of great information and inspiration, both of which we all need; thanks for this Great post. claim free bitcoin gold

Internet Download Manager IDM Crack 6.29 build 1 Patch full version free donwload is a downloading software and become choice of millions of people around.Idm 6.29 build 2 crack

First, Thanks for this wonderful information. This article is very helpful to all users. Thanks a lot for sharing.
How To Close Apps On iPhone X
iPhone Do Not Disturb

This is an incredible motivating article. I am basically satisfied with your great work. You put truly extremely supportive article. Best Antivirus 2018

From now on, I will regularly visit this site because here gives me more useful information.
hell let loose game release date
metal gear survive wiki
far cry 5 release date
state of decay 2

Tas Seminar murah merupakan tas yang sering di gunakan untuk kebutuhan seminar dan Tas Pelatihan Murah , biasanya tas seminar ini di bordir atau di sablon sesuai tema acara seminar yang di selenggrakan ,bagi anda yang berminat untuk pesan tas seminar anda bisa mengunjungi web kami Tas seminar kami melayani pemesanan tas seminar kit, tas seminar ransel, tas seminar laptop, tas seminar batik. Konveksi Tas Seminar

I feel really happy to have seen your webpage and look forward to so many more entertaining times reading here. Thanks once more for all the details. subway surfers game unblocked

Thanks for publishing this details. I simply wish to let you know that I just look into your site and also I locate it really fascinating and useful. bitcoin signals

Last year, for example, Pandora paid more than 50% of its revenue in royalty payments and as a resul. % not bad
https://www.flynow.vn/ve-may-bay-di-ca-mau-CAH

This is also a very good post which I really enjoyed reading. I have the possibility to see something like this. happy new year wishes 2018

Great information. Thanks for sharing
Kollywood www.sopnajewelry.com

thanks for sharing to us Enjoyed every bit of your blog.Really looking forward to read more
Akshay kumar www.sopnajewelry.com

This is exceptionally fascinating substance! I have altogether delighted in perusing your focuses and have arrived at the conclusion that you are ideal about a large number of them. You are extraordinary.
http://99mobileprice.com/nokia-5-plus/ Nokia 5 Plus Price in USA

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

Thanks for the nice blog. It was very useful for me. I'm happy I found this blog. Thank you for sharing with us.I too always learn something new from your post. voyance

Really Nice article...i look forward to see more of this great ideas.

Naija Mp3 download

This is a great inspiring article. I am pretty much pleased with your good work. You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. Commes des Garcons

thanks for you
convertidor mp4

I really impressed after read this because of some quality work and informative thoughts. I just wanna say thanks for the writer and wish you all the best for coming! hampton bay fans

Excellent information on your blog, thank you for taking the time to share with us. Amazing insight you have on this, it's nice to find a website that details so much information about different artists. hampton bay ceiling fans

http://www.createmyfreeapp.com/
The best online app builder - Create My Free App
Our app builder provides a platform where you can create free app for iPhone, Amazon & Android for all kind of business.

I think the admin of the internet site is definitely doing work hard in favor of his internet site, given that in this article each facts is quality based knowledge. Also visit my blog post Viber APK for iPad

Great job for publishing such a beneficial website. Your web log isn’t only useful but it is additionally really creative too. Continue the nice writing. Facebook liker

it's really easy to finding us as we tend to tend to stand live at your city or nearest places. http://www.unitedcheckcashing.com merely bear in mind us which we will cash your check really short quantity with a extremely low value.24 hour check cashing

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.