Brian's Music Musings: Misc info and new internet radio ruling

Thursday, April 19, 2007

 

Misc info and new internet radio ruling

Updates: I now have both the Paris 78's for the G Clefs on my page, for all to see. A great sounding group,and for some reason, the issue on Regina called "Angel Listen To Me" has still eluded me.
Added Hey Lolly Lolly to the Oscar McLollie site. I still have two records to get for his site, but I'm sure I will keep searching until all 78's and 45's are shown. I had an email from someone that said they were a long time "Family Friend" and mentioned he lived in Oakland. Seems reasonable to me, as my information was the San Fran bay area.
I will be attempting to interview Fred Romaine of the Native Boys in the near future. I had one other interview that unfortunately has fallen through at the moment. Maybe I will have better news in the future, along with identification.
Thanks to a suggestion from Fred, and a project that was on my list already, I split the first and second pressings page into hits and not quite as big hits. If you are on dial-up like me and Fred, those pages might load a little easier. My goal is to continue to add records to those pages, so i could run into the same issue on the future.
Also in the works are updates on my playlists. Maybe I can add those by the end of the month. It's funny just how many artists type their names or group names in a search engine, and then see themselves on a playlist. I have a least one and a half years of lists to add!
I have been following the recent upholding of the ruling concerning Internet radio and how they pay royalties. The ruling is that the fee structure will be based on a "per song per listener" basis. Effectively, that will put most Internet radio into silence. A company called Soundexchange is a real motivating force behind the fee structure, and had quite an interesting comment after the ruling. They said "It looked forward to working with Internet radio companies in order to ensure that the industry succeeds". What industry? There won't be any left after this goes into effect. It appears that the new fee structure will take place starting in 2008, though adjustments for 2006/7 seem to be in place and are retroactive. Some stations are estimating fees of around 200K for 2007, which is astronomical. Some non commercial stations don't even have a yearly budget that high. Most others are scraping to get by on the donations from their beg-a-thons, and can't even dream of coughing up that much dough. Non Commercial stations do have an exception if they fall under the set amount of listener hours, so that may save some stations, But, it's at the cost of not growing your on-line audience. Go over the maximum and you pay the commercial rates.
So, what will happen? I can't believe that Soundexchange is this stupid. And i don't think they are. Some compromise will need to be reached. You know the old game of telling somebody really bad news, and then say you are joking, but here is the real "Not So Bad News" and it seems so much better? Could happen. Most small and medium market stations won't be able to justify the current rate, but might consider an increase after seeing the initial outrageous expectations of Soundexchange. Large market stations might be able to absorb it. But those are not the stations most people want to stream, and are not the stations with the varied playlists and new alternative music. More on this subject in my next blog along with a small discussion on royalties/payments, etc.

Comments:
Brian:

Soundexchange is a creature of the RIAA, so it stands to reason that they would establish extortion-level royalty rates.

Why did the government allow Soundexchange to set rates? Simple. The RIAA is a BIG contributor to congressional campaigns, etc.; the politicians follow the dollar and the public be damned.

Gino
 
Hi Gino,
Absolutely agree with you on both counts. I think my slant was asking the question how radio stations will afford the new rates. Will Soundexchange back down and accept less if they see a mass exodus of Internet streams? I hear from radio stations just how expendable the stream is, especially at those rates, but do they really mean it? I am anxious to see who does what, and it is going to happen soon.
Brian Lee
 
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