Internet Radio Just Got More Expensive - Idolator Comments

Internet Radio Just Got More Expensive

Maura Johnston — Sat, 03 Mar 2007 12:08:03 EST

Thanks, guys. I've updated the post with your corrections. (I misread "created by the RIAA" as an indication that the two organizations still had a relationship.) RIAA or no, this is still an awful decision.

Maura Johnston

Internet Radio Just Got More Expensive

shovelingslop — Sat, 03 Mar 2007 08:41:55 EST

You got your facts wrong here. SoundExchange is not a "division of the RIAA." In fact, while SoundExchange's board does include a percentage of RIAA-appointed spots, it's equally represented by independent labels, and is officially a nonprofit. Much of the money goes straight into artists' pockets without even traveling through record labels' checkbooks. The non-profit has an overlap with Jenny Toomey's Future of Music Coalition (they share at least one board member), and fights hard for compensation.

I'm not saying that I agree with the CRB's decision. It's way too fucking high and will drive small mom & pop webcasters like 3WK.com out of business (I wrote a story about all this a few months ago). But, for once, it's not accurate to blame this on the RIAA.

shovelingslop

Internet Radio Just Got More Expensive

Deadly Tango — Fri, 02 Mar 2007 18:02:45 EST

I agree completely that these new rates are ruinous to just about everyone. The big kicker (along with the rate hike itself) is the elimination of the "percentage of revenue" payment option, and the retroactivity to January 2006 -- meaning people are already in the hole even if they turn off their streams today.

It's important to note that the biggest players (NPR, Yahoo!, AOL, etc.) won't really be hurt. They have all negotiated their own deals instead of paying the "statutory rate" that was adjusted today.

Also, SoundExchange spun off from RIAA a few years back, so there's no longer any direct linkage. Many recording contracts allow the labels to receive SoundExchange payouts, but that's different from SE-as-direct-subsidiary. I'm not defending SoundExchange or RIAA, but the facts should be out there.

Deadly Tango