Internet Radio Fight Coming to a Head
The new, much higher internet radio rates go into effect on July 15. Two bills are currently in Congress that would roll back the rates to about the previous level.
The debate is heating up, and it is hampered by the fact that it is in fact a complicated issue plagued by a lack of hard facts that are available to the public. Although many of the issues are easily visible and debatable, much of the information used bythe Copyright Royalty Board in making its decision was considered proprietary business information belonging to the radion stations and was not released to the public. So it is difficult for observers to accurately analyze the decision.
The sides in the debate arent’ even clearly defined. Record labels mostly are in favor of the higher rates. Stations themselves are mostly NOT in favor of the higher rates. But some independent labels oppose the higher rates, while individual artists fall on both sides. Consumers mostly don’t care, as long as they get to hear the music they want when and how they want.
Soundscan, the agency that collects royalty fees on behalf of record labels and which has mostly represented their interests throughout the Copyright Royalty Board case and the ensuing twists and turns, has been in talks with a coalition representing the internet radio industry. Late last week, Soundscan publicly issued a compromise offer to the industry. Industry representatives have not rejected it out of hand, but have clearly stated that it is too little too late, and appears designed to shut down negotiations rather than to sincererly continue the process.
But with the raise taking effedct in less than two weeks, and Congress heavily involved at this point, we are pretty much guaranteed to see fireworks shortly after the Fourth, as well as on the Fourth.
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