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story category Equalizing Royalties for Cable and Internet Radio
Will a 7.5% royalty cap satisfy everyone?
(old news - 11:06AM Saturday Nov 10 2007)
tags: Radio · business · cable
Earlier this year we saw a big dispute between SoundExchange (which collects recording royalties) and Internet radio broadcasters over rising royalty rates. The uneasy end to the dispute came when SoundExchange postponed the rate hike until a better deal could be worked out. That better deal may come in the form of equalizing royalty rates between Internet radio and cable radio.

Sound Exchange has proposed a royalty rate cap of 7.5% on cable radio to last through 2012. This rate is less than what they offered to Internet radio broadcasters and actually mirrors the amount that had been requested in the dealings by supporters of the Internet Radio Equality Act. There is no guarantee that the proposed cable rate cap will apply to Internet radio but interested parties like SaveNetRadio hope that equalization of rates is in the works.

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Forums » Equalizing Royalties for Cable and Internet Radio
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texans20
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Who Cares

Just open up some servers outside of this greedy country's control and let the music stream.

BF69

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Camden, TN

Re: Who Cares

said by texans20 See Profile :

Just open up some servers outside of this greedy country's control and let the music stream.
Yes don't like the rate the bank is offering you on a home loan just rob the bank instead.
madrhino

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1 edit

Re: Who Cares

said by BF69 See Profile :

said by texans20 See Profile :

Yes don't like the rate the bank is offering you on a home loan just rob the bank instead.
Today was the first time you have heard of this issue isn't it?
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exocet_cm
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1 edit

Re: Who Cares

said by madrhino See Profile :

said by BF69 See Profile :

said by texans20 See Profile :

Yes don't like the rate the bank is offering you on a home loan just rob the bank instead.
Today was the first time you have heard of this issue isn't it?
It would seem that way, madrhino See Profile.

BF69 See Profile, this isn't an issue of stealing music, it is whether or not webcasters have to pay royalty (retroactive at that) rates.
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said by BF69 See Profile :

said by texans20 See Profile :

Just open up some servers outside of this greedy country's control and let the music stream.
Yes don't like the rate the bank is offering you on a home loan just rob the bank instead.
Not quite sure of your logic. If you do not like the home loan rate your bank is offering, just go to a different bank. You do not have to rob it. If you do not like the royalty terms imposed here, find a location with better royalty terms.
Kearnstd
Elf Wizard
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or work things out separately with the artists your station plays and tell SoundExchange where they can shove it. i mean as long as the artist gets their due royalties the law is being followed.
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GOLFnSUN
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Cable radio ?

At first I wasn't sure what that was and how it was different from internet radio. Then I remembered that my Cable TV has music channels on it. So I guess Comcast, TW, etc. get a rate not higher than 7.5% for their music offerings thru the cable STB.

It would be hard to justify charging more for internet radio since the music would be traveling over the same pipes. So I guess the internet broadcaster will get the same deal as the news item surmises.
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dslwanter
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1 edit

They're not the same

Internet Radio and "Cable Radio" as they called it, which is nothing more than digital music channels, are two different beasts. First off all the music channels on digital cable are subscription based and are paid by premium subscribers. Some internet radio stations are ad supported and others are just hobby like mine.

Is it fair for me to pay the same as those actually making money? I don't think so. And I don't think it's fair for cable music channels to pay the same as internet radio and visa versa.

The digital music channels on DirecTV are XM, so what about them? That's a whole different game. The cable companies will get pissed if their competitor doesn't have the same royalties they do and visa versa, depending on of course who has to fork out the most royalties, cable or satellite music channels.
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Re: They're not the same

said by dslwanter See Profile :

Is it fair for me to pay the same as those actually making money?
I think you've put the cart before the horse. The question is whether artists and publishers care that you've chosen to donate your time to distribute their creations. Why should your altruism force them to be?

Mark

dslwanter
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Re: They're not the same

said by amigo_boy See Profile :

The question is whether artists and publishers care that you've chosen to donate your time to distribute their creations.
I like that statement. But since this country it about make money on anything you possibly can, they don't care. If they tried to collect royalties from me from the last 6 years I've been doing this, I'd probably go broke and homeless but they wouldn't care, as long as they get their money.
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mrchris
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Demands

More underground music, less mainstream to be played!

furgason

@covad.net

Re: Demands

said by mrchris See Profile :

More underground music, less mainstream to be played!
as a composer I never get paid no matter what the rate - go figure

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Monopoly...

Why is it that SoundExchange is the only ones collecting royalties here? I say others should also collect to get some competition so that rates will go down... or at least that's how things would work in my world.
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Re: Monopoly...

said by netwire See Profile :

Why is it that SoundExchange is the only ones collecting royalties here? I say others should also collect to get some competition so that rates will go down... or at least that's how things would work in my world.
Soundexchange was created by the RIAA companies.Copyrights are controlled by the U.S. Copyright Royalty Board, which answers to Congress,which answers to the RIAA.
It'll only get worse,Hillary takes their money all the time.
Kearnstd
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Re: Monopoly...

so i cant open up a streaming station and work out deals with the bands? because lets say the band wants less then SE does that would be better business for the both of us as the band gets paid directly(rather then through a middleman who skims money).
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madrhino

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Re: Monopoly...

said by Kearnstd See Profile :

so i cant open up a streaming station and work out deals with the bands? because lets say the band wants less then SE does that would be better business for the both of us as the band gets paid directly(rather then through a middleman who skims money).
Beginning on January 1, 2003, SoundExchange became the only collective designated by the Copyright Office to distribute statutory royalties to copyright owners and performers entitled under 17 U.S.C. 5 114(g)(2).[2] ---from here

»en.wikipedia.org/wiki/SoundExchange
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QforQ

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You guys dont know what you're talking about

You can't just go to a different country and start streaming. You have to pay SoundExchange if you have ANY listeners from the USA. So moving your station across the pond wont solve your problem.

Also, it's not feasible to work with bands and get them to agree to a different rate. Most stations stream 24/7 which means they play a LOT of music. This would mean you'd have to contact each band's management, work out a deal, get them to sign a contract and then file that agreement with SoundExchange...for each and every band. Good luck on accomplishing that one.

Basically Internet Radio's last hope at the moment is either SE waking up and realizing they should charge us 7.5% of revenue or congress can pass the internet radio equality act. Otherwise this industry is screwed.
rid0617

join:2003-07-20
Greer, SC

PAYOLA

I am old enough to remember when record companies paid radio stations to play their records. When did it turn around that radio stations have to pay to play this garbage they call music?
madrhino

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1 edit

Re: PAYOLA

said by rid0617 See Profile :

I am old enough to remember when record companies paid radio stations to play their records. When did it turn around that radio stations have to pay to play this garbage they call music?
Internet radio is considered different than terrestrial radio.
You would think that the record companies would embrace new technology and use their ground floor edge to grow and profit instead of trying to kill new technology.
Senseless.

SRFireside

join:2001-01-19
Houston, TX
Royalties have always been part of the game, including radio stations. Sure the payola was there (and still is), but over the table the radio stations have to pay their cut to play the songs.
Kearnstd
Elf Wizard
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Mullica Hill, NJ

however broadcast radio has a MUCH stronger lobby then internet radio and as such they have more power over the royalty board. atm traditional radio is the way most hear music which gives them tons of pull.(we will pay you this rate if you want the public to hear your music). webcasters dont have this power yet as for one thing they arent as unified as broadcasters.
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id_deleted

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4 edits

Not a big deal

The relatively low bitrates of Internet radio stations have never impressed me. I can listen to and control my HD Radio receiver from anywhere over the Internet, and it streams the HD Radio stations audio at 320 kbps!
Here's a screen shot of the Internet interface to the HD Radio receiver attached to my home PC :



It has full control, channel selection, presets, seek, etc., and I can tune to any AM or FM station in my area rather it's HD enabled or normal. It can also stream any song (mp3, flac, etc.) on my home PC's harddrive.

wanderingby

@shawcable.net

Nonsense - this is far from over

"the uneasy end" ... ???

Apparently you haven't been paying attention. This "dispute" hasn't ended. We're still right where we were when it began -- Internet radio stations being threatened with instant extinction as SoundExchange still holds all the cards.

Perhaps you missed the bit about the number of stations that have chosen to shut down rather than continue to operate in a climate of uncertainty with a potentially massive royalties bill due and payable.

Next time, try and keep up with what RAIN or Eliot over at Wired is doing.

Thanks for coming out.
Forums » Equalizing Royalties for Cable and Internet Radio


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