Net radio’s executioner halts ax in midair
This hearkens back to those dramatic serials in the early days of radio in which the protagonist was left in peril at the end of each episode, only to escape the next week and battle against new threats. Seemingly out of chances to block Sunday’s imposition of crushing new royalty fees, thousands of Internet radio broadcasters, large and small, looked to be on the verge of shutting down or scaling way back (see “Weekend forecast: sunny Saturday, Internet radio doomsday Sunday“). Late Thursday, a reprieve came from the only entity able to offer one — SoundExchange. The licensing body said it would not begin collecting the new fees Sunday and would hold off while negotiations continue. Wired reports that the talks have already cleared one contentious issue off the table, at least for now — the minimum charge of $6,000 per channel required under a scheme created by the Copyright Royalty Board. With the large webcasters streaming thousands of personalized “channels,” the fee would cost them millions.
Even though Net radio remains on the razor’s edge, subject to the good graces of SoundExchange, webcasters were encouraged by the development. “It was getting pretty close,” said Tim Westergreen, founder of popular service Pandora. “I always had underlying optimism that sanity was going to prevail, but I was beginning to wonder.” And while crediting consumer outcry for SoundExchange’s new flexibility, SaveNetRadio.org is still hoping for a legislative solution to ensure the continued health of the medium.

I’m amazed that the “executives” at the top don’t understand that radio (net or otherwise) is advertising for performers. That’s what radio has always been about. Hear a song. Like it. Go buy the album/eight track/cassette/CD or now download it. How short-sighted they are!
ASCAP, BMI. Old radio [and TV, bands, etc.] pay a royalty to these artist-representation groups who, in turn, compensate the artists.
The “NET” is just another type of “radio” but, for no reason, Net People believe when they operate the Net Network, there is no obligation to the artists whose music they transmit.
That mindset is SO NOW…
Sorry Stuart-
The royalties go the writers of the songs, not the performers. Performers get zip unless the are participants in the copyright or wrote the song.
Dave
Dave,
So, it’s OK to deprive the Authors ["writers"] of compensation? Please check the Copyright clause of the Constitution.
Also, performers can and do obtain Copyright protection for their renditions, either in combination with the writers or independently.
In both cases–which covers most modern music–please answer the question: what gives the Net People to rip off music that is protected by copyright?
And, while you are at it, if music can be freely copied, why can’t anyone rip any computer program they’d like to? I suspect many persons reading this blog are programmers and need to obtain a reasonable compensation for writing a successful program.
Under the “All Free” theory espoused, are they to be sacrificed also?
Dave, you clearly have no idea what you’re talking about. This is made evident by the fact that you believe this argument is about free v paid content. (see your own comment above)
Then you go on to attempt to address the point Dave makes, yet once again you either don’t understand it, or you choose to completely avoid it.
Please try to avoid contributing to discussions about which you know nothing.
and of course I should have opened with “Stuart”… apologies to Dave for that incredible gaffe.
This isn’t about whether Net People “broadcasters” transmit for free or compensate artists (well, some of them, under the terms permitted by the big conglomerates). Net People understand that artists should receive money for their work. But, so far, the conglomerates have been trying to make Internet ‘casters pay far more than an equivalent terrestrial radio station (or even a club DJ) would have to pay in the same circumstances.
I’m with Bill. Internet radio, for me, is promotion. I hear many artists I won’t hear in this commercial-FM wasteland, and, if I’m interested, I go to the concerts and buy the music. If I don’t hear ‘em at all….