Registered: Nov 2000
From:

New Webcasting Rates Could Spell End
The Future or Fate of Independent Online Radio Rests in Judges' Hands

By Randall Krause

Official proceedings to determine the new license fees for U.S.-based Webcasters retroactive to January 2006 are drawing to a close. The trial-phase was completed this past November, and deliberations were held on December 21. It is now up to the Copyright Royalty Judges to evaluate the testimony submitted by all parties involved and enact a new statutory rate by March 4, 2007.

SoundExchange has urged that the license fees be raised to 30% of gross revenues or 0.08 to 0.19 cents per-track per-listener, whichever is higher. (This, of course, is in addition to the revenue-based fees already imposed by ASCAP, BMI, and SESAC for use of their repertory of musical works.)

Other participating industry groups -- including such major players as AOL, Yahoo!, NPR, and AccuRadio, and Digitally Imported -- argued that the rates were already excessive given the current marketplace conditions. Any increase would impose an unrealistic barrier-to-entry.

At present, eligible online music stations that elect the Small Webcaster Settlement Act pay a license fee corresponding to 10% or 12% of revenues or 7% of operating expenses. In other words, SoundExchange is proposing a triple-fold increase in the statutory rate, and one that would apply to all Webcasters regardless of commercial or non-commercial status.

There is a good likelihood that the revenue-based model now afforded by the SWSA will become obsolete. Individual broadcasters (in particular, those generating less than $50,000 per year) will no longer be provided immunity from the standard performance-based license fees endured by large commercial broadcasters. This could spell disaster for many.

The recording industry contests that stream-ripping alone imposes an unbearable economic risk, and therefore higher royalties are a necessity to compensate sound-recording copyright owners for potential losses in CD and MP3 sales. This ongoing sense of paranoia is particularly evident given that the recording industry still perceives Webcasting to have very little to no promotional benefit to performing artists.

Will March 4, 2007 spell the end for independent online radio?

_________
Randall E. Krause
Executive Director
Small Webcaster Community Initiative
info@smallwebcaster.org

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Registered: Nov 2006
From: USA

Great.... We are just getting started and now it's all going to be gone. Guess I'll hold off buying any more servers since it looks like I might be able to re-purpose my Shoutcast server.

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Registered: Jan 2007
From: DELETE THIS ACCOUNT

That is how it goes...

The cyclic inflation of every little connected thing within the economy...

Eventually it will be up to those three places to service the planet...

Then what..

Charges from the government on monopolization..



This could be interesting..

Really if it was up to these guys I think they would try to cap our ears, shut down our computers and the only way we would ever hear anything would be by paying to go see it live or by paying to un-cap our ears so we can hear a song at a time...

One thing to be there to protect the artist..its quite another for them to try equalize the profitability of those artist with more laws and higher rates.. The accusations will never stop and I believe tat somewhere someone else will draw the line before it absolutely goes too far..

I mean if you were the head of a corporation and you were sitting around looking for oles in your profitability and income, watching the numbers and the investment dollar based on your individual gains.. What would you do or attempt to do to raise that number... Not to mention the publicity you get, even on national news ... What a way to drop a name...

We all know what it is..we all know the elements involved..

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Registered: Nov 2006
From: USA

There is one loophole, but it's a long road. Written into the laws is the option to contract with each record label to play their music. Might have to do this in the near future.

It's strange that ASCAP, BMI, SESAC don't seem to follow the same trend as the evil RIAA. The rates for schools are very reasonable, so I can't understand where the RIAA gets off???

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Registered: Nov 2006
From: USA

BTW, what's the source of this info. I looked all over the SX site, but their content is woefully out of date.

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I sell nothing but often recommend products, please do not assume I am trying to sell you on anything.

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Registered: Nov 2000
From:

Reference the following article published in the Broadcast Law Blog.
http://www.broadcastlawblog.com/arc...by-march-4.html

--Randall

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Registered: Nov 2006
From: USA

Thankyou! I recently started a thread over at the BSI forums about some of the things I had (recently) learned and wanted to keep on top of things.

Please note that I'm finding your posts extremely valuable while I navigate the mine field that is licensing fees.

What will it take to push your organization up to the level of being able to have a lawyer in DC fighting for our rights? I'm really dissappointed with IBS, they were very responsive right up until they received our payment, now they are gone! I like the thought of having a group of people working to help my stream stay legal, and fighting to keep the price a little lower.

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And your mileage may vary.

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Registered: Apr 2005
From: Earth

quote:

---

Originally posted by Greg_E
navigate the mine field that is licensing fees

---

..and that's no understatement

The new rates aren't set in stone yet are they?

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Registered: Nov 2006
From: USA

The judges need to vote on them (March 4), but from what that article said, the arguments are finished. We can now only hope for a fair deal.

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I sell nothing but often recommend products, please do not assume I am trying to sell you on anything.

And your mileage may vary.

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Registered: Nov 2000
From:

quote:

---

Originally posted by Greg_E
It's strange that ASCAP, BMI, SESAC don't seem to follow the same trend as the evil RIAA. The rates for schools are very reasonable, so I can't understand where the RIAA gets off???

---

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Registered: Nov 2000
From:

quote:

---

Originally posted by Greg_E
What will it take to push your organization up to the level of being able to have a lawyer in DC fighting for our rights? I'm really dissappointed with IBS, they were very responsive right up until they received our payment, now they are gone! I like the thought of having a group of people working to help my stream stay legal, and fighting to keep the price a little lower.

---

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Registered: Nov 2006
From: USA

I hate to say it, but it is only passion because I've put a lot of my unpaid time into our radio station, so I'd like to see it keep going for a while without getting shut down because we did something wrong. No one else in our department seems to be concerned about these matters, so I kind of had to take it on. I'd really much rather be soldering something than dealing with these licenses. I truly have a feeling that one of the licensing parties is going to get bent at us for lack of doing something, but I've laid out all the rules as I seem to understand them, including reporting, so someone else needs to pick that part up. I wish it could be trusted to the students to take care of the reports, but that just isn't realistic.

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I sell nothing but often recommend products, please do not assume I am trying to sell you on anything.

And your mileage may vary.

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Registered: Nov 2000
From:

Has your school sought the advice of an attorney? It seems that would be a justifiable expense for matters of a legal nature.

--Randall

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Registered: Nov 2006
From: USA

Not yet, but we really should. I was hoping the IBS would help us out, after all that is part of why you pay them. I haven't taken the time to track down the PO and make sure they were really paid, but I'm pretty sure they have. And with the "new" reporting clause that happened in October, they probably haven't figured things out yet. Schools used to be able to pay an additional $25 to avoid the reports, but that seems like it has finally ended.

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I sell nothing but often recommend products, please do not assume I am trying to sell you on anything.

And your mileage may vary.

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Registered: Nov 2000
From:

I'm not too familiar with the IBS, but I do know they are a member of the National Association of Broadcasters, which supposedly provides various legal resources for over-the-air broadcasters as well as simulcastors. You might try contacting the NAB directly, as I'm sure they'd be more than glad to point you in the right direction.

--Randall

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Registered: Nov 2006
From: USA

We are a member of the NAB and the SBE, they really don't care much for eductional needs. In fact they both worked to stop the micro FM class license which would have replaced the old class D license and changed the number of clear adjacent channels to open up more space. Like everything else, the are only interested in protecting th big broadcasters, any little people can go pound salt.

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I sell nothing but often recommend products, please do not assume I am trying to sell you on anything.

And your mileage may vary.

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Registered: Nov 2000
From:

Well, that's how things play in the world of politics and business I'm afraid to say.

Even the Small Webcaster Settlement Act was just a backroom deal struck with the RIAA by a group calling themselves the Voice of Webcasters that consisted of a mere thirteen online broadcasters all of which had their own personal agenda and none of whom were even representative of the small Webcaster community.

http://www.theregister.co.uk/2002/1...c_of_net_radio/

--Randall

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Registered: Jun 2004
From: Oregon

quote:

---

Originally posted by SorceryKid
Even the Small Webcaster Settlement Act was just a backroom deal struck with the RIAA by a group calling themselves the Voice of Webcasters that consisted of a mere thirteen online broadcasters all of which had their own personal agenda and none of whom were even representative of the small Webcaster community.

---

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Registered: Feb 2005
From: ASF Radio

quote:

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Originally posted by rockouthippie
The RIAA thinks their content is worth more. The inability of broadcasters to make a profit shows they're wrong.

---

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Registered: Nov 2000
From:

quote:

---

I think you're griping about nothing.

---

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Registered: Nov 2006
From: USA

quote:

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Frankly, unless you are one of the established shoutcast stations, I don't think you have the chance of a snowball in hell of starting a monetarily successful shoutcast station today.

---

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Registered: Sep 2006
From: Santiago, Chile

quote:

---

Originally posted by rockouthippie
They can probably kill XM radio, shoutcast, et all.

---

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Registered: Nov 2006
From:

Everyone Prepare to move their stream source overseas! Hehe, but seriously though I think WebRadio is correct, it will be a blow to us streamers, but in most cases, you could just move your stream source over sea's, granted this may mean copying a bunch of music, but I am sure we will find a way to work around this legislation.

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StreamDir.com - Add your stream Today!

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Registered: Dec 2005
From: Detroit

heh. anyone actually have a rough breakdown of where the majority of the streams in the yp originate from? Or is it pretty much split up evenly across the world.

I always thought that the majority were in the states. Specifically because, living in the states I was not blocked from the listening (a lot of servers in UK have been geolocked now) and streams that I could get into over seas seemed to buffer like mad...

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Registered: Nov 2006
From: USA

Ummm, that locking technology only works in certain circumstances. If you have a link to the actual stream, most often the UK streams still work. If you go to the web page to listen, the browser will lock you out. There are of course ways around that too, but not for polite discussion.

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I sell nothing but often recommend products, please do not assume I am trying to sell you on anything.

And your mileage may vary.

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Registered: May 2003
From: Denver, Colorado

Hi everyone:

quote:

---

Originally posted by Greg_E

It's strange that ASCAP, BMI, SESAC don't seem to follow the same trend as the evil RIAA. The rates for schools are very reasonable, so I can't understand where the RIAA gets off???

---

Because the RIAA wants to make LOADS of $$$ at our expen$e. Why? Simple. To pay their fat cat executives the fat lofty salaries they make so they can in turn enjoy the fat lofty lifestyle they are ANYTHING but grateful to have.

I'd give anything to see the next "Katrina" wash all that away and knock these people down a few socialogical pegs. Maybe then, they'd be more appreciative and thankful for what they've got.

Then again, maybe not. They'll just simply buy another condo, yacht and/or whatever else they lost & simply move on (After writing it off on their taxes of course).

Okay, I've ranted enough now. But it felt good to get it off my chest.

Cheers

Pat (ala Jeeper One)

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TLWC Radio (128K - Flagship Station Of THE LEFT WING CONSERVATIVE Talk Show & Podcast - NOW ON THE AIR) | WSUD Radio & TV (32K - Home Of The Soap Suds Radio & TV Networks - NOW ON THE AIR) | SportsRadio 101 THE PUCK (128K - Flagship Station Of THE SPORTS BAR Talk Show & Podcast - NOW ON THE AIR)

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Registered: Apr 2006
From:

My thoughts:
Wtf is this Stalinist Russia? China? no, no it is not.

Down with the FCC, up with the people.

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Request Your Rock

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Registered: Nov 2006
From: USA

The FCC has nothing to do with this.

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I sell nothing but often recommend products, please do not assume I am trying to sell you on anything.

And your mileage may vary.

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Registered: Jan 2007
From: Reno, Nevada

Hope nothing goes away. I just spent the last several months funbling through the setup process. I'm totally new to webcasting, and I felt a great sense of accomplishment once my station was added to the directory, and I could send my stream into the ether. My compliments to the ones responsible for Winamp and the users who have contributed so much to the ongoing developement of same.

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Registered: Apr 2003
From:

quote:

---

Originally posted by Greg_E
Well, our station is a not for profit college station, if they squeeze harder, we will just disappear. We never had hopes of making a profit, the only reason to have a stream is to give our students an outlet for their content. Thios station is part of our curriculum, not just a club, so we are teaching the DJ, station managers, etc. of tomorrow. With no outlet, the classes become somewhat meaningless.

Now I know what you are thinking, why not just buy a transmitter and go on the air. If it was that easy, we would be doing it. But the sad fact is that there are no open channels in our area. It's stream or nothing. That's why I am so concerned.

---

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Registered: Dec 2005
From: Detroit

seems like a setup only accessable via the campus lan is a little more reasonable... block the outside world from it, the RIAA et al will never know about it and you can keep on doing what you are doing...

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Registered: Nov 2006
From: USA

We already do the cable to everywhere thing, but having outside connection is fairly important. We're a community college, so most of our students commute each day. Legal micro power FM is a joke, not really very useful (been there, tried it), so I'll be building a legal micro power AM soon. Info on legal micro power transmitting can be found here http://www.part15.us/

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And your mileage may vary.

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Registered: Feb 2007
From:

This was posted on the Broadcast Law blog. Doesn't sound good.

Copyright Royalty Board Releases Decision - Rates are Going Up Significantly
The Copyright Royalty Board decision on the royalties for to be paid by Internet Radio stations for streaming music during the years 2006-2010 was released to the participants in the proceeding today. And the rates are going up significantly over the next few years. More importantly, especially for smaller entities, there are no royalty rates based on a percentage of revenue as were in effect for small webcasters under the Small Webcasters Settlement Act. Instead, all royalties are given as a per performance number, i.e. a payment for each song every time a listener hears that song

In a 100 page decision, the Board essentially adopted the royalty rate advanced by SoundExchange (the collective that receives the royalties and distributes the money to copyright holders and performers) in the litigation. It denied all proposals for a percentage of revenue royalty (including a proposal that SoundExchange itself advanced). The Board also rejected any premium for streams received by a wireless service, as SoundExchange had suggested.

The rates set by the Board for commercial webcasters, including broadcasters retransmitting their over-the-air signals on the Internet, are as follows:

2006 - $.0008 per performance

2007 - $.0011 per performance

2008 - $.0014 per performance

2009 - $.0018 per performance

2010 - $.0019 per performance

The minimum fee is $500 per channel per year. There is no clear definition of what a "channel" is for services that make up individualized playlists for listeners.


For noncommercial webcasters, the fee will be $500 per channel, for up to 159,140 Aggregate Tuning Hours (one listener listening for an hour) per month. Noncommercial webcasters who exceed that level pay at the commercial rate for all listening in excess of that limit.

The decision is subject to Motions that confidential information be redacted to the public, so it is not yet released for public review. A request for rehearing of this decision can be made by any party to the case within 15 days. The Board can also make technical corrections to the decision (not affecting the rate). The decision is to be published in the Federal Register within 60 days. Appeals may be filed with the US Court of AppeaIs in Washington, DC within 30 days of Federal Register publication. As this decision may well significantly impact webcasters, large and small, there is no doubt that more will be heard on this decision in coming months. We'll have more details on this decision in coming days.

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Registered: Dec 2005
From: Detroit

*sniff* *sniff* *sniff*

yep. That's the smell of impending doom alright.

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Registered: Jun 2004
From: Oregon

Is that gonna kill Loudcity?. I didn't mind spending $50 to put up my temporary Christmas channel last year. $500 bucks, well that isn't gonna fly.....

Man, the record industry is gonna keep me from spending my money with them no matter what I do.

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Registered: Feb 2007
From:

There's a good chance.. it will be.. appealed. I am setting up a website for broadcasters to pull together and fight this. The best way to combat this type legislation is for the people to speak out against it. I'll provide a mp3 for broadcasters to play outlining the loss of broadcasters due to associated costs and why. If we don't all work together we could see the end of the majority of broadcasters in the near future. I personally feel it's wrong and am willing to put forth an effort to try and stop it. Our biggest assest is our listeners. We need to let them know.

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Registered: Dec 2005
From: Detroit

I could not agree more wildun.

Make sure you post your site when you have it put together in SHOUTcast discussions.

Let me know when you get that done. I'll definately support it.

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Registered: Feb 2007
From:

Thanks fcuk. I'll post it there as soon as it is ready. I'm putting it out in other broadcast forums as well. We will literally need every webcaster large and small involved to get the word out and change this.

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Registered: Jun 2003
From: Inside my water bong

http://webcastersunited.com/forum/forumdisplay.php?f=28

If you are a broadcaster or a listener then take this VERY seriously. It appears if this is allowed to happen royalty rates will nearly triple and threatens to shut down the vast majority of internet radio operations from small webcasters to the FM conglomerates.

We all better get ready for one hell of a fight and I'll be damn if I go down without the fight of my life. I hope you feel the same way.

I am working to get banners and PSA's available for all webcasters. Time is of the essence on this one and if you don't take immediate action kiss this all goodbye. Forever.

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Last edited by MegaRock on 03-03-2007 at 08:40 AM

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Registered: Mar 2003
From: ct

thanks for spearheading this, Rob.

People had better take this seriously!

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