RIAA motto: If you can’t control and profit 100% from it, kill it.

U.S. Copyright Royalty Board Rejects Webcasters, Embraces SoundExchange

On Friday, which is generally accepted in public relations circles as the best day of the week to release controversial news, the United States Copyright Royalty Board (image to the right) announced new royalty rates for webcasts, effective from 2006 to 2010.

The board ignored the arguments of the International Webcasting Association and other webcasters, and apparently simply endorsed the proposal of the RIAA-associated SoundExchange royalty organization, which represents the major and some indie labels.
[…]
RAIN’s [Radio and Internet Newsletter] math indicates that the rate would render Internet radio unsustainable, or at the very least, more ad-laden than terrestrial radio — and that’s before the songwriters’ licenses are taken into account.

Here is SoundExchange‘s website and here’s a link to RAIN’s.



  1. OhForTheLoveOf says:

    When they say the revolution will not be televised… do they mean the revolution cannot afford to pay the royalties?

  2. moss says:

    The RIAA forgot decades ago about creativity, communications and art. That was, after all, what music has always been about.

    So, now they’re business only — and they suck at that. They made tons of money for decades; but, so did the Mafia. In the civilized world, that’s not the sole standard for quality.

    Fortunately — subjectively — looking at my iTunes radio station playlist, only 2 of the stations I listen to regularly are US-based. The rest should be able to avoid this latest round of extortion.

  3. JT says:

    Yeah, drive webcasting underground along with music downloading. As Tehran would say about their nuclear program applies to the paradigm shift in the music industry, “you can’t stop this train.” And if you try, you’ll invoke the law of unintended consequences.

  4. OhForTheLoveOf says:

    #3 – Sure… for you I will…

    By why?

  5. dtrots says:

    Anyway, how can this work? The premise is a charge for all the songs and movies you can watch. Can it be some type of tax? A tenth of a percent of every purchase you make go into a fund of some sort? Attach it to your electricity bill? Somehow?

    Imagine the world. No piracy. Everything is included. No cost to the corps to combat piracy. Everything is accessible. The artists can make their money based off a percentage of downloads vs. the money in the fund. Somehow. A not-for profit organization. They also make money by charging for the ticket to see them live. If they are actually good, people will come. Sell a shirt. People will still go to the theater because it’s a social event. To go out, be somewhere other than home or the office. To zone out. Dvd’s did not kill off the theaters. Great performers will still have sold out concerts!

    The pressure will be off the artists to put a full cd out with just a few good songs on it. Put out a song when it creatively hits you. The best MP3 player wins! People will buy it if it’s good!

    Open the system up worldwide. Watch the global economy ripple. Greenspan will be able to predict due to “Music Fund” ups and downs. Hot bands will flourish. Small bands will flourish. The economy will flourish.

    When new technology comes along it can easily be adapted. No format fights. The the organization approve it. Whatever.

    What am I missing?

  6. TJGeezer says:

    When the law enabling the Copyright Board’s action was being considered in the Senate earlier this year, I wrote to Sen. Diane Feinstein pointing out it would effectively kill a brand new industry. She wrote back with the usual RIAA bullcrap about protecting the artists.

    I just wrote her again to ask how making it harder for artists to find an audience will help them. No doubt I’ll get the same response her web site email input gave me: “Thank you for expressing your opinion.”

  7. Artful Dodger says:

    I love that business model, and think it should be applied to my work as well.

    I’m a computer tech, but I’m so good at it that my fixes aren’t a science, they’re an art form. They’re graceful, and beautiful.

    So, I’ve fixed hundreds of computer and network problems over the years. I think I’ll bill all those people and businesses, again, for my work.

    Sounds fair. It’s great to get paid over and over and over and over for the exact same piece of work.

    I think I’ll use the money to buy a big house, get some bling-bling, some dubs on my Caddy, and a raging drug problem.

  8. elbillo says:

    I say let the RIAA kill US podacsting of music. As it is already I get my music podcasts from non-US sources. When the rest of the population figures out they can’t get a decent music podcast from US sites, they will move on also, then the RIAA might try to correct their damage, but then it will be too late, because we’ll already have moved on. Come on everyone, vote with your (online) feet ! Let’s let the RIAA kill themselves.

  9. George of the city says:

    Thanks Art. Ihave felt the same way for a while now. I design and build custom water systems. I I think I should be paid every time they flush.


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