Internet Radio Dies Today
Today is the day when most of Internet’s radio station go silent. If you’re an avid net radio listener like me, you already noticed, because your station either died mid-program or got interrupted by a message saying, basically, the RIAA is killing us.
Instead of a flat fee, Internet radios (even non-commercial ones, which is most of them) will have to pay a price per performance per listener, at a rate that will, simply put, force many of them to close down. Now the hour when this will start being enforced - July 15 - is drawing near, and the broadcasters are trying to draw attention to the fact that they simply cannot pay these new rates.
In an interview I’m listening to right now, one broadcaster (Accuradio) gives a practical example of what’s happening. He has a small webcast operation, and he manages to earn about $4000 yearly in advertising. He was paying around 12% of his revenue to the RIAA. With the new rates, since he has to pay a fee per song per listener, he’ll have to pay around $6000 to the RIAA, which is more than his total revenue. So, he either needs to push to triple his advertising revenue to make even, or he has to go bankrupt.
Similar sentiments, albeit on a larger scale, come from Tim Westergren, the founder of Pandora. With the new rates, they need to invest very heavily into changing their advertising models (they’re not profitable at the moment even under the old rates), and if they’re lucky, they might start being profitable in a year or two. He also mentions that the satellite radio and terrestrial radio don’t pay this rate, which means that Internet radio is getting the worst deal.
Let me add a personal sentiment here. My guess is that because this is the Internet, head honchos at RIAA and others who are making this decision think that it’s some sort of a downloading/piracy haven, where kids save the entire daily streams and repackage and distribute them, or something similar. Well, it does not happen. Although I personally have the technical knowledge to save any audio stream to my hard disk, actually doing that is the last thing on my mind. I - and everyone else - tune into net radio just like terrestrial radio: I turn it on and I listen to it. There’s not a trace of piracy here; those who want to pirate music want entire albums, not a nondescript stream of arbitrarily chosen music.
I can easily imagine a situation where people who are making these decision are scared of the Internet - just like they’re scared of everything they don’t know anything about - and that’s why they’re trying to prevent a ‘problem’ that doesn’t even exist. And, by doing that, they’re ruining an entire small industry, and pissing off millions of listeners worldwide.
What can you do? Go join the fight at SaveNetRadio.
June 26th, 2007 at 5:18 am
[…] Our apologies to Yahoo!, Live365, RealNetworks, MTV, Pandora, and others that seem to think to that this is the day that the music dies, but we’d like you to consider that this is also an Internet Radio Day of Freedom. […]
June 26th, 2007 at 7:05 am
[…] While the idea that users should come first is an appealing one — and companies like craigslist.org have certainly prospered by making it a mantra — Last.fm’s argument seems a little disingenuous. If the doubling of radio royalty rates takes effect (Stan Schroeder at Frantic Industries has a nice overview of the issues, as does the SaveNetRadio site), small streaming companies could go under. That would obviously leave Last.fm in a pretty sweet position. […]
June 26th, 2007 at 10:10 am
[…] Internet Radio Dies Today: chi ascolta le webradio come me si sarà accorto che oggi molte di queste (tranne Last.fm!) sono silenziose per protestare contro l’aumento delle royalties previsto a partire dal prossimo 15 Luglio. Maggiori informazioni qui. […]
June 26th, 2007 at 2:16 pm
[…] Internet Radio Dies Today Monday was the last day for many net radio stations that will be forced to shut down because of the RIAA and the new rules it wants implemented on the net. Find out what all the fuss is about at Frantic Industries blog. Go ahead and make your viewpoint heard. […]
June 27th, 2007 at 12:45 am
[…] Internet Radio Dies Today June 25th, 2007 Today is the day when most of Internet’s radio station go silent. If you’re an avid net radio listener like me, you already noticed, because your station either died mid-program or got interrupted by a message saying, basically, the RIAA is killing us. Instead of a flat fee, Internet radios (even non-commercial ones, which is most of them) will have to pay a price per performance per listener, at a rate that will, simply put, force many of them to close down. Now the hour when this will start being enforced - July 15 - is drawing near, and the broadcasters are trying to draw attention to the fact that they simply cannot pay these new rates. more at FranticIndustries… __________________ AffiliateBOT.com - Giving You Reasons To Earn! JOIN US TODAY AND WIN A SONY CYBER SHOT CAMERA FOR THE MONTH OF JUNE! […]
June 27th, 2007 at 11:05 am
Survey: Do You List to Internet Radio?…
Internet Radio practiced dying yesterday to protest the upcoming 300% royalty rate increase for on-line music webcasters that the Copyright Royalty Board charges, which are retroactive for the past 17 months and due on July 15th; this threatens to……
June 30th, 2007 at 6:16 pm
[…] I’m probably a little bit late in writing this, but today a lot of internet radio stations shut down for the day to bring awareness to the new rates the RIAA are trying to force on them. […]
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