Search:  

 
 
   News
newer
story category Larger Webcasters Lament Royalty System
Say they're forced to pay billions in new 'administrative fees'
(old news - 03:51PM Thursday Jun 07 2007)
tags: Radio · business · content
As previously discussed, a new royalty rate scheme lobbied for by the RIAA will potentially put small and mid-size webcasters out of business. Larger webcasters are annoyed as well, pointing out that the new system also has them doling out billions in "administrative fees." The new royalty deal levies a charge of at least $500 per "channel" on webcasters -- RealNetworks alone served 400,000 unique channels to its subscribers last year. As Techdirt notes, it's not too likely that any of this new income will make its way to artists.

Related:
  1. Internet Radio Stations React To New Royalty Scheme
  2. Hope For Internet Radio
  3. Internet Radio Lives
  4. Bono Blames ISPs For Music Industry Decline
  5. Fight Child Porn By...Doing Nothing Differently
  6. Sony Launches PS3 Video Store
  7. Rogers Uses Deep Packet Inspection for DNS Redirection
  8. YouTube Videos Now Available On TiVo
Forums » Larger Webcasters Lament Royalty System
view: topics flat text 
Post a:

aaron8301
I can't get myself to go away.

join:2005-01-03
Clarkston, WA
·CableOne

Artists never get the money anyway


As Techdirt notes, it's not too likely that any of this new income will make its way to artists.
Any extra income that the RIAA or record companies earn NEVER gets to the artists. The artists have contracts with the record companies. They get paid a set amount no matter what. That's why I have NO problem downloading music without paying for it; the artists don't lose a penny, only the greedy record companies do that are ripping the artists off anyway.

Screw the RIAA and record companies; if I could buy a CD DIRECTLY from an artist and give said artist cash in his/her hand for it, I would. But I don't care to help a record company exec pay for his mansion in the hills or the Bimmer in his driveway.
--
A computer lets you make more mistakes faster than any other invention, with the possible exceptions of handguns and Tequilla. -- Mitch Ratcliffe
sd70mac666

join:2003-06-05
Saint Albans, VT

Re: Artists never get the money anyway

Another nice way of saying extortion.
NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
·Pacific Bell - SBC

said by aaron8301 See Profile :

...I have NO problem downloading music without paying for it; the artists don't lose a penny, only the greedy record companies do that are ripping the artists off anyway.
Anybody can rationalize any act for any reason...
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast


edit:
June 7th, @10:46PM

You are right about the artists being irrelevant. The only problem though is that since the recording companies own the copyrights to the songs, they can still legitimately nail you for copyright infringement if they so chose to.

I still don't understand why these broadcasters simply refuse to play RIAA member company licensed content until the dispute is resolved to their satisfaction.
--
Only SHATNER is Kirk.

anon_coward

@verizon.net

said by aaron8301 See Profile :

Screw the RIAA and record companies; if I could buy a CD DIRECTLY from an artist and give said artist cash in his/her hand for it, I would. But I don't care to help a record company exec pay for his mansion in the hills or the Bimmer in his driveway.
You're an artist. You make just enough to get by, paycheck to paycheck working 10 hours a day.

How do you afford to go to a studio? Where do you find the time without quitting your job? Well, the record company says "here, take a 50-500K cash advance, and come back in a year and show us what you've got."

That's a large gamble for someone to take on someone they just met and saw play. Would you? I wouldn't.

Without that money, a lot of good artists would be floating around nowhere, going from mediocre gig to mediocre gig instead of being in the spotlight.
amungus
Premium
join:2004-11-26
America
clubs:
·Cox HSI

Great, so now.......

My rates are higher for Rhapsody... I never even use the 'radio' streams they have. I much prefer to pick out the songs I'd like to hear on my own, thanks very much.

CD Baby used to list what each online distributor would pay out, and Rhapsody was a whopping 1 cent per stream; of that, CD Baby would pay out 9/10 of that penny to artists...
Sounds reasonable right? ...I'd bet signed artists never even see a dime from streams, and that their labels only pay out a small percentage of actual song sales from the likes of Rhapsody and iTunes. What a scam.

The cost of hosting and bandwidth is surely not much for compressed music, and I don't see how it can really go up...

So, this seems like a nice easy way for the royalties to magically increase for no other reason than pure greed.

The "middle man" has largely been erased and even if it's still there, they deserve a much smaller cut than before... The world has changed and the ability for ANYONE with the desire to do it, CAN do it. I know SEVERAL bands on Rhapsody right now... MANY of them get paid from CD Baby, a "middle man" of sorts, which passes somewhere around 90% directly to the artist(s)...
THAT is a business model... and it's the exact opposite of traditional distribution, which is why the record labels are scared sh*tless and are now extorting money from "thin air" like this.

People are much wiser as to what's "fair" now, and with traditional distribution being overturned, many people are now buying music the way that they should've been all along - by fairly compensating the artists as directly as possible.

I say support your local INDEPENDENT record store (while you can!), and support your local music scene as well.

MoeDumb
"America Si, Obama No."
Premium
join:2002-09-23
Bronx, NY

Re: Great, so now.......

said by amungus See Profile :

I say support your local INDEPENDENT record store
What's a "record"?


--
"tick...tick...tick..." »www.jtf.org/

Tomek
Premium
join:2002-01-30
Brooklyn, NY
My local music scene is terrible and has no match.
I'm yet to hear anything regarding piracy from artists in for example Europe. I guess they get their income from actually performing on stage.
--
Semper Fi

RadioDoc
Sortofadog
Premium,ExMod 2000-03
join:2000-05-11
Chicago, IL
·AT&T Midwest

said by amungus See Profile :

My rates are higher for Rhapsody... I never even use the 'radio' streams they have. I much prefer to pick out the songs I'd like to hear on my own, thanks very much.
Same thing. The RIAA does not differentiate the two. In fact, you're using it as a jukebox, which will have even higher rates.
--
Toolmaster of La Grange.

Anomus

@ameritech.net


from:
StreetSpirit See Profile
guitarzan See Profile
Desdinova See Profile
madrhino See Profile

People Just dont get the big picture ... till its too late..

Deep pocket moguls want your money. All of it. They got you addicted to cigarettes, played with the chemicals, and got you addicted even more. Dying people lawsuits never stopped them. Only big government paying health care costs and seeing a Trillion dollar windfall opportunity finally saw the light and cashed out the cigarette industry. Not a penny went to a dead or dying person hopelessly addicted to those chemicals. Big entertainment hooked us with free TV and Radio. Then they invented pay cable and lured us in with commercial free entertainment. Then the fees crept up and the commercials soon flooded in. Now they invented digital TV and outlawed free air TV signals. Soon Moguls will have digital control of individual viewers never before possible with free air TV. If left to the moguls, free TV will come to an end and we will be stuck with subscription and pay per view every time we push that TV button. Radio Stations are already under fire to pay like they have never paid before. Digital radio will never get the exemptions analog radio thrived under, and there is a relentless push to repeal all the analog radio royalty exemptions. Stations with licences will be forced into bankruptcy and big mogul entertainment will buy up fire sale broadcasting capability all over the world. If left up to the moguls, the day will come when they alone control production and distribution of all entertainment media, just like it is in the fuel industry. For those that thought CD pricing was always unfair, you haven't seen nothing yet. The oil industry after decades of consolidation is now blooming and we are getting our butts kicked. And there is very little the government can do about it. The entertainment industry is heading in the same direction and few people seem to realize it. But P2P has been an unanticipated monkey wrench in the Big Moguls take over project. They cant sell their previously free content unless their audience is trapped into buying it. And right now it is a growing monkey wrench with no workable ideas of stopping it. Its the only thing protecting the consumer from possible big Mogul entertainment domination in the near future. Cigarettes collapsed because the government found a way to take all their money away from them. The oil industry has survived all government attacks, and the entertainment industry probably will too. So p2p, the peoples weapon, is all that is left to fight for our right to free ad driven entertainment. Help protect your future rights by using a p2p application today...

mrchris
Premium
join:2002-10-01
North Babylon, NY

Re: People Just dont get the big picture ... till its too late..

Paragraphs are your friend, use them.

Boricua65
Oye, chico

join:2002-01-26
Sacramento, CA
Well said.

Voyager2K2

join:2001-10-04
Wayne, PA
·Verizon FIOS

Live 365

I have been a VIP subscriber to live 365 for a couple of years now.
Live 365 provides great niche programming and they always supply a link to buy the CD containing the current song playing.
My employees in the PC Lab finds it makes their day go faster.
Live 365 has been paying the prescribed royalties up to this point.
In fact, Sound Exchange has offered a new fee proposal.
»www.live365.com/choice/sxreply.live

You be the judge.
If this doesn't work out I guess we're going to FM broadcast radio.
Forums » Larger Webcasters Lament Royalty System

Friday, 25-Jul
23:33:49
Terms of Use | Privacy Policy | Hosting by www.nac.net - DSL,Hosting & Co-lo | feedback | contact
8th year online! © 1999-2008 dslreports.com.